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Disputed derivative transactions – Santander and Pourtuguese Rail Operator

I happened to read today a news item on disputed derivatives transactions. It is reported therein, the dealers settled a crop of disputed derivatives trades with Portuguese state owned entities last year with one exception – Santander...

Interest Rate Derivatives and their wrong sales to gullible customers

Banks are more in the news these days – for a variety of reasons with negative impact of course.  Of all these, the one connected with mis-selling of interest rate derivative products is causing considerable damage. The kind of allegations...

FX Forward Contracts

Forward Contract is a mechanism through which the rate is fixed in advance for purchase or sale of foreign currency at a future date. In such an arrangement, the risk of loss which might accrue on account of adverse movement in the rate of exchange...

OTC Derivatives Products – An overview

The expression ‘over the counter – OTC’ can be used to mean financial instruments that are traded between counterparties (dealers) either directly or through broker network. This operation is different from operations in centralized exchanges...

Best Practices Framework for Derivatives Business

 “The world of banking has changed radically as a consequence of the recent crises and it is still changing. The rise of the universal banking model seems almost unstoppable, basically driven by the desire for an accelerated consolidation....

Role of central counterparties and processing of OTC derivatives

This post makes an attempt to cover the role of central counter-parties and processing of OTC derivatives in four parts as under: Part I – All about Central Counterparties Part II – Best practices framework for CCPs Part III – Some loud...

Securitisation Markets


An Overview of Structured Finance

What is structured finance? Structured Finance enables efficient refinancing and hedging profitable economic activity beyond the scope of conventional form of on-balance sheet securities with a view to reduce cost of capital and to mitigate...

FX Futures (ppt)