What Are the Benefits of Close-Out Netting?

Close-out netting occurs when two counterparties agree to combine their various obligations into a single net payment following a default. ISDA’s new whiteboard animation video highlights how the enforceability of close-out netting drastically reduces credit exposure between two firms and makes derivatives markets safer and more efficient.

Source: ISDA

Categories: Fintech / Crypto, Fixed Income, Regulatory

Topics: Compliance, Fixed Income, Risk management, Swaps, Trade Process Analysis

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