Multilateral netting

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Revision as of 09:27, 16 May 2015 by imported>Doug Williamson (Make the group and non-group perspectives explicit.)
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An arrangement among three or more parties to net their obligations.

The obligations covered by the arrangement may arise from financial contracts, transfers or both.

The multilateral netting of payment obligations normally takes place in the context of a multilateral net settlement system. Multilateral netting is widely used within groups of companies.

In a group of companies, this system consolidates the cross-border payments of the various subsidiaries after conversion into a common, reference currency.


See also