Regulation EE

DEFINITION of 'Regulation EE'

A regulation set forth by the Federal Reserve. Regulation EE, also sometimes referred to as netting eligibility for financial institutions, gives banks permission to settle mutual obligations at their net value instead of their gross value. This form of settlement is known as contractual netting.

BREAKING DOWN 'Regulation EE'

Regulation EE allows banks to settle obligations they have to each other through the use of bi- or multi-lateral netting contracts. Securities broker/dealers can also settle trades in this manner. Members of clearing organizations are likewise included.

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RELATED FAQS
  1. What is the difference between EE and I Bonds?

    Read about the similarities and differences between the EE and I savings bond programs created by the U.S. Department of ... Read Answer >>
  2. What is the difference between payment netting and close-out netting?

    Learn about the risk reduction practice of netting, and specifically the differences between payment netting and close-out ... Read Answer >>
  3. What impact does government regulation have on the financial services sector?

    Learn about how the financial services industry is affected by government regulation, and the different types of regulations ... Read Answer >>
  4. Should mutual funds be subject to more regulation?

    Understand whether mutual funds need stricter regulation. Learn what types of current and future regulations have been put ... Read Answer >>
  5. What are some types of financial netting?

    Read about the different types of financial netting, which is a critical concept when competing claims exist between different ... Read Answer >>
  6. When is a share purchase marked as 'settled' by a brokerage?

    Understand the process of purchasing stock, including ordering, clearing and settlement, and learn when a stock trade is ... Read Answer >>
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