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time payment items are exchanged between direct clearers data is entered into the a CSS to track the total volume and value of items so we know that aggregate volume and value data is entered into a CSS streams by each direct clear that is owed funds as a result of payment exchanges what happens next in the clearing a process called netting at the end of the daily exchange process a CSS entries including those for POS and online payments are used to determine the net positions of the direct clearers netting is the process of establishing the amount owed to each fi by adjusting the mutual claims of each one on the other the a CSS determines the amounts owing between each pair of direct clearers a process known as bilateral netting the system also determines the net positions of each fi overall this process is referred to as multilateral netting the multilateral net position of each direct clear is called its clearing balance settlement of the Bank of Canada is the next and final step in
