An arrangement among multiple parties that transactions be summed rather than settled individually. Multilateral netting not only streamlines the settlement process, it also reduces risk by specifying that, in the event of a default or some other termination event, all outstanding contracts are likewise terminated. CLS, TriOptima, exchanges and clearing houses perform netting. Firms can multilaterally net positions and/or cash flows. EMIR encourages greater multilateral netting through mandatory use of CCPs.