Netting by novation: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Layout.) |
imported>Doug Williamson (Classify page.) |
||
| Line 7: | Line 7: | ||
* [[Netting]] | * [[Netting]] | ||
* [[Novation]] | * [[Novation]] | ||
[[Category:Accounting,_tax_and_regulation]] | |||
[[Category:Cash_management]] | |||
[[Category:Liquidity_management]] | |||
Revision as of 20:28, 1 July 2022
Netting by novation agreements allow for individual forward-value contractual commitments, such as foreign exchange contracts, to be discharged upon confirmation and replaced by new obligations, all of which form part of a single agreement.
Amounts due under a discharged contract will be added to running balances due between the parties, in each currency and at each future value date.
