Netting of Payments - ISDA Provision: Difference between revisions

Netting of Payments - ISDA Provision (view source)

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+===Settlement Netting===
+Note this section refers only to {{tag|settlement netting}} - the settlement of offsetting payments due on any day under the normal operation is the Agreement - and not the more drastic {{tag|close-out netting}} - which is the {{isdaprov|Early Termination}} of all Transactions under Section {{isdaprov|6}} and the summing of positive and negative MTMs to arrive at a settlement amount following the occurrence of an {{isdaprov|Event of Default}} or an {{isdaprov|Early Termination Event}}.
+===Multiple Transaction Payment Netting===
+"Multiple Transaction Payment Netting" is a defined term introduced in the {{2002ma}} in place of the more clunky {{1992ma}} language set out in Section {{isdaprov|2(c)}}.
+In the {{1992ma}}, to specify that netting across transactions would apply, you must '''disapply''' Section {{isdaprov|2(c)(ii)}}. Counterintuitive, but true (because otherwise netting only applies "in respect of the same {{isdaprov|Transaction}}").
+That is partly why, in the {{2002ma}} they introduced the more intuitive {{isdaprov|Multiple Transaction Payment Netting}} concept. So now you can say "Multiple Transaction Payment Netting does (or does not) apply".
+Good on them, eh?
+'''See''': [[Netting of Payments - ISDA Knowhow]]
 {{isdasnap|2(c)|{{isdaprov|Netting}}. If on any date amounts would otherwise be payable:— <br>
 :(i) in the same currency; and <br>