Template:M comp disc 2002 ISDA 2(c)

Settlement netting, not close-out netting

Section 2(c) is about “settlement” or “payment” netting — that is, the operational settlement of offsetting payments due on any day under the normal operation of the Agreement — and not the more drastic close-out netting, which is the Early Termination of all Transactions under Section 6.

If you want close-out netting, see here:

• Single Agreement
• Early Termination Amount