Settlement netting: Difference between revisions

Settlement netting (view source)

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 ===Caution===
-Settlement netting should not be, but routinely is, confused with the much more drastic close-out {{tag|netting}}, which is the termination of all extant transactions and the calculation of a single net {{isdaprov|Early Termination Amount}} under section {{isdaprov|6(e)}} of the {{isdama}}, which is something that only happens in the unhappy situation that one or other party has terminated following an {{isdaprov|Event of Default}} under Section {{isdaprov|5(a)}} or a {{isdaprov|Termination Event}} under Section {{isdaprov|5(b)}}.
+Settlement {{tag|netting}} should not be, but routinely is, confused with the much more drastic [[close-out netting]], which is the termination of all extant transactions and the calculation of a single net {{isdaprov|Early Termination Amount}} under section {{isdaprov|6(e)}} of the {{isdama}}, which is something that only happens in the unhappy situation that one or other party has terminated following an {{isdaprov|Event of Default}} under Section {{isdaprov|5(a)}} or a {{isdaprov|Termination Event}} under Section {{isdaprov|5(b)}}.
 {{isdaanatomy}}