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Netting 1.
The settling of mutual obligations among two or more parties by offsetting payables against receivables, with the effective settlement being limited to the net amount due.
(1) The term bilateral netting is used when two parties are involved; the term multilateral netting is used when more than two parties are involved.
(2) There are several types of netting, including netting by novation, payment netting and close-out netting.
Translations
Synonyms and variations
- Bilateral netting
- Multilateral netting