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Netting |
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NettingReducing transfers of funds between subsidiaries or separate companies to a net amount.Netting Similar MatchesNetting outNetting outTo get or bring in as a net; to clear as profit. Multilateral netting systemMultilateral netting systemElimination of offsetting cash flows between a parent and several subsidiaries. Payments nettingPayments nettingReducing fund transfers between affiliates to only a netted amount. Netting can occur on a bilateral basis (between pairs of affiliates), or on a multi-lateral basis (taking all affiliates together). Exposure nettingExposure nettingOffsetting exposures in one currency with exposures in the same or another currency, when exchange rates are expected to move in such a way that losses or gains on the first exposed position should be offset by gains or losses on the second currency exposure. |
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