Netting
Plain definition. Netting is when participants in a clearing or settlement system agree to cancel out what they owe one another, so only a smaller net amount remains.
Technical definition. In the European Central Bank’s payments and markets glossary, netting is defined, in the context of clearing or settlement systems, as the agreed offsetting of mutual obligations by participants in a system. The process involves calculating net settlement positions and legally reducing them to a bilateral or multilateral net amount, and it may take several legal forms.
On this site
On this site, Netting comes up in What does the Ripple Prime and EDX Markets integration provide?, How does net settlement reduce the capital needed to trade? and What is Ripple Treasury’s embedded netting?.
Source
Payments and markets glossary (bankingsupervision.europa.eu), read October 1, 2026.