easy · FRM Part 1 Financial Markets and Products
What is 'multilateral netting' in a CCP-cleared swap market?
- The process of netting a clearing member's interest rate swap exposures against its separate equity trades
- A CCP rule that lets a clearing member settle its net obligations solely in local currency
- An exchange rule requiring at least three separate counterparties to formally co-sign every cleared swap contract
- Combining all of a member's positions across different counterparties into one net obligation to the CCP.
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