AskDefine | Define netting

Dictionary Definition

net adj
1 remaining after all deductions; "net profit" [syn: nett] [ant: gross]
2 conclusive in a process or progression; "the final answer"; "a last resort"; "the net result" [syn: final, last]

Noun

1 a computer network consisting of a worldwide network of computer networks that use the TCP/IP network protocols to facilitate data transmission and exchange [syn: Internet, cyberspace]
2 a trap made of netting to catch fish or birds or insects
3 the excess of revenues over outlays in a given period of time (including depreciation and other non-cash expenses) [syn: net income, net profit, lucre, profit, profits, earnings]
4 a goal lined with netting (as in soccer or hockey)
5 game equipment consisting of a strip of netting dividing the playing area in tennis or badminton
6 an open fabric of string or rope or wire woven together at regular intervals [syn: network, mesh, meshing, meshwork]

Verb

1 make as a net profit; "The company cleared $1 million" [syn: sack, sack up, clear]
2 yield as a net profit; "This sale netted me $1 million" [syn: clear]
3 construct or form a web, as if by weaving [syn: web]
4 catch with a net; "net a fish" [syn: nett] [also: netting, netted]netting

Noun

1 a net of transparent fabric with a loose open weave [syn: gauze, veiling]
2 creating nettingnetting See net

User Contributed Dictionary

English

Verb

netting

Extensive Definition

This page is about the finance term. For the fabric called netting see Net (textile).
In general, netting means to allow a positive value and a negative value to set-off and partially or entirely cancel each other out.
In the context of credit risk, there are at least three specific types of netting:
  • Close-out netting: In the event of counterparty bankruptcy, all transactions or all of a given type are netted at market value. The alternative would allow the liquidator to choose which contracts to enforce and which not to (and thus potentially "cherry pick"). There are international jurisdictions where the enforceability of netting in bankruptcy has not been legally tested.
  • Netting by novation: The legal obligations of the parties to make required payments under one or more series of related transactions are canceled and a new obligation to make only the net payments is created.
  • Settlement or payment netting: For cash settled trades, this can be applied either bilaterally or multilaterally and on related or unrelated transactions.
Netting decreases credit exposure, increases business with existing counterparties, and reduces both operational and settlement risk and operational costs.
In the context of pollution control, netting refers to a procedure whereby a company can create a new pollution source only if it makes equal reductions in pollution elsewhere in the company, i.e. it cannot acquire new permits from the outside.
netting in German: Netting_(Finanzen)
netting in Russian: Неттинг

Synonyms, Antonyms and Related Words

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