Netting of Payments - ISDA Provision: Difference between revisions

Netting of Payments - ISDA Provision (view source)

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 Note this section refers only to settlement {{tag|netting}} — 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 {{isdaprov|Early Termination}} of all {{isdaprov|Transactions}} under Section {{isdaprov|6}}.
-If you want  close-out netting, see here::
+If you want  close-out netting, see here:
 * {{isdaprov|Single Agreement}}
 * {{isdaprov|Early Termination Amount}}
+===A contrarian writes===
+[[Amwell J]], our resident contrarian, wonders what on earth the point of this provision is since [[settlement netting]] is a factual operational process for performing existing legal obligations, rather than any kind of variation of the parties’ rights and obligations. If, on a day, you owe me ten pounds and I owe you ten pounds, and on that day we agree to both keep our tenners, what cause of arises? What loss is there? We have settled our existing obligations in different way. To be sure, if I pay you and you don't pay me that's a different story — but then there is no [[settlement netting]] at all. The only time one would wish to enforce [[settlement netting]] it must have happened.
+So, friends, this rather convoluted passage in that mighty industry standard is, as G. K. Chesterton once said - merely [[piss and wind]].
 ===Multiple Transaction Payment Netting===