- Source: Bilateral netting
Bilateral netting in finance and investments is a legally enforceable arrangement between a bank and a counterparty that creates a single legal obligation covering all included individual contracts. This means that a bank’s obligation, in the event of the default or insolvency of one of the parties, would be the net sum of all positive and negative fair values of contracts included in the bilateral netting arrangement.
See also
Set-off (law)
References
Kata Kunci Pencarian:
- Bilateral netting
- Set-off (law)
- Derivative (finance)
- Depository Trust & Clearing Corporation
- List of acts of the Parliament of India
- International Swaps and Derivatives Association
- Over-the-counter (finance)
- CLS Group
- Settlement risk
- Net settlement
