| Criteria |
Settlement netting |
Set-off |
Close-out netting
|
| Friendliness |
Chummy |
Hostile |
All-out thermonuclear war
|
| Examples |
Settling up after a boozy weekend away. Optimising BAU cashflows in back office. |
Recouping amounts owed from delinquent debtor you happen to owe things to |
Closing out against bankrupt hedge fund
|
| Consent required |
Yes. |
No. |
No.
|
| In scope transactions |
As agreed by all. |
As selected by setter-offer |
All transactions under specific master agreement
|
| Due date |
Same date only. |
Same date only. |
Any (we will make them all the same).
|
| Currency |
Same currency only. |
Same currency only. |
Any (we will make them all the same).
|