This issue concerns how PJM will be the counterparty to all transactions, unless market participants expressly and mutually contract between themselves (or self schedule to themselves). By establishing the necessary mutuality between PJM and market participants to lawfully enable netting and set-off of a market participant’s debits and credits in a default situation, will reduce risk of other members’ exposure to defaults. PJM to establish credit requirements that appropriately take account of netting and set-off rights, reducing credit that would otherwise be required to cover the risk that, following a market participant default, netting and set-off would not be allowed.