About the legal nature of payment netting in financial transaction agreements

Abstract

The article discusses payment netting. It is the means of settling obligations under financial transactions on foreign exchanges and over-the-counter financial markets. In particular, provisions on payment netting are stipulated in clearing rules for organized trading as well as standard documentation developed by Russian and international associations of financial market participants. Jurisprudence gives various viewpoints on civil law characteristics of netting. Author conducts analysis of these sources and carries out comparison of payment netting with similar civil law instruments (severance pay, novation and due performance of obligations).