Bilateral netting - Financial definition
Financial acronyms
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Concise definition of the term bilateral netting
The term bilateral netting describes an arrangement between two parties where transactions are summed, rather than settled individually.
Comprehensive definition of the term bilateral netting
Bilateral netting not only streamlines the settlement process, it also helps mitigate risk by specifying that, in the event of a default or some other termination event, all outstanding contracts are likewise terminated.