Exposure netting

Exposure netting

Offsetting exposures in one currency with exposures in the same or another currency, when exchange rates are expected to move in such a way that losses or gains on the first exposed position should be offset by gains or losses on the second currency exposure.
References in periodicals archive ?
Besides achieving savings from cross-margining OTC and listed derivatives, significant efficiencies may be realized from cross-product exposure netting, an integrated default fund structure and collateral management services.
These techniques include forward market hedge, futures hedge, money market hedge, currency options, exposure netting and the use of official export/financing agencies.
The benefits of exposure netting include the reduction of foreign exchange required to settle inter-company transactions and the reduction of transfer and commission charges through fewer and smaller cross-border payments.