Part (b) asked candidates to undertake multilateral netting using £ spot mid-rates and using a tabular format. Most candidates made a reasonable and successful attempt to show the result of the multilateral netting. Common errors included not using the mid-spot rates and/or a tabular format (transactions matrix).

It is important that the requirements in the question are addressed to gain the maximum marks possible. Many candidates confused the discussion required and talked about companies wanting to (or not to) undertake multilateral netting, instead of governments allowing companies to undertake it.