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name: Netting by Novation

Netting by Novation. Unless separately agreed and set out in the Confirmation regarding a specific Forex Contract, each Forex Contract made between Customer and PSI will immediately, upon its being entered into, be netted with all then existing Forex Contracts between Customer and PSI for the same paired currencies having the same delivery date. Each Forex Contract containing an obligation to deliver that has been netted pursuant to the foregoing shall immediately be deemed cancelled and simultaneously replaced by a single transaction. For purposes hereof, each Forex Contract shall be deemed a Forex Contract from and after its inception for all purposes.