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. Such netting is conducted through a central counterparty. The multilateral net position is also the bilateral net position between each participant and the central counterparty.
See also:
multilateral net settlement position multilateral net settlement system
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