Payment netting would be used, which would reduce ABC's counterparty risk, but this risk would be transferred to other creditors outside the clearinghouse.

Payment netting would be used, which would reduce Repo Co.'s counterparty risk, but ABC's counterparty risk would be increased.

Closeout netting would be used, which would reduce ABC's counterparty risk, but this risk would be transferred to other creditors outside the clearinghouse.

Closeout netting would be used, which would reduce Repo Co.'s counterparty risk, but ABC's counterparty risk would be increased.