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Reducing transfers of funds between subsidiaries or separate companies to a net amount.


Netting is a process the National Securities Clearing Corporation (NSCC) uses to streamline securities transactions.

To net, the NSCC compares all the buy and sell orders for each individual security and matches purchases by clients of one brokerage firm with corresponding sales by other clients of the firm.

Those orders can be finalized internally by adjusting the firm's books to reflect changes in ownership.

The small percentage of trades that aren't netted require firms with net short positions, whose clients sold more than they purchased, to deliver the required securities to the NSCC, or more precisely have them debited from their Depository Trust Corporation (DTC) custodial account for delivery to the NSCC.

The NSCC credits those shares to the firms with a net long position, whose clients purchased more shares than they sold.

In the final step, the DTC nets the total costs of buying and selling throughout the trading day to limit the amount of money that must be exchanged among firms. Firms with a net debit wire payment to the DTC, and firms with a net credit receive funds.


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Morton, a kayak-fishing guide who lives in West Hills, has been hoop netting from a kayak since the lobster season opened at the end of September.
Hoop netting for lobsters at night also is a way of expanding fishing opportunities for those with day jobs.
1) Global interest netting should be implemented legislatively through an interest equalization approach rather than a credit/offsetting approach.
3) Global interest netting should apply only to tax years that are not barred by statute.
1 It also describes large-value netting arrangements that settle using the Federal Reserve and identifies issues arising in cross-border and multicurrency clearing arrangements.
Netting may be applied in many real and financial markets.
The Treasury study concludes that "global" interest netting would be consistent with the intent expressed by Congress in the past.
Beginning with the enactment of the interest rate differential and continuing with each rate adjustment that has expanded the differential, Congress has repeatedly instructed the IRS to implement the most comprehensive interest netting procedures that are consistent with sound administrative practice.
The Board believes that the purpose of these netting provisions is consistent with the purposes of the Commodity Exchange Act and would support amendments to H.
To limit these risks, many financial institutions enter into netting contracts under which the payment obligations between two parties, or among several parties, are netted so that each party to the netting contract is required or entitled to make or to receive only a single payment that is the net of all of that party's transactions.
Good Tax Policy Favors Comprehensive Interest Netting
The purpose of section 1511(b) was to provide a transition period within which the IRS was to coordinate the interest-rate differential provisions with the offset rules of section 6601(f); after this period, comprehensive netting procedures were to be implemented.