Tag Archives: Settlement
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...
Foreign Exchange Dealing Operations
If you buy a Binny Silk Saree for your wife (or girl friend!) at T.Nagar Chennai Nalli Silks, you will naturally want to pay for it with Indian Rupees and the Nalli Silks will want to be paid in Rupees because he pays all his bills with Rupees.
Likewise,...
Basic concepts in Foreign Exchange
Meaning:
The term foreign exchange is popularly referred to as the currencies of other countries. To an Indian, US Dollar is a foreign currency just as Indian Rupee to an American. Mr X, an Indian, receives a remittance of (say) USD 1000 from...
DFA and Framework for payment, clearing and settlement regulation,
Title VIII of the Dodd-Frank Act, titled the “Payment, Clearing, and Settlement Supervision Act of 2010,” was enacted to mitigate systemic risk in the financial system and to promote financial stability, in part, through enhanced supervision...
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...
Australian money markets – An introduction
Do you know Australian Dollar is the third most traded currency in the world in 2012? In 2010 it was the fifth most traded currency in the world – behind US Dollar, Euro, Japanese Yen and Pound Sterling.
Australian Dollar is the favourite...
Bilateral and Triparty Collateral Management
The recent financial markets crises have heightened and increased focus on collateralization.
Collateralization is a process where a borrower pledges an asset as recourse or cover or a security to the lender for facilities or limits or credits...
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....
Central Counter Parties have a greater role to play
This blog makes an attempt to cover the role of central counterparties in four parts as under:
Part A– All about Central Counterparties
Part B– Best practices framework for CCPs
Part C – Some loud thinking on their future roles
Part D...
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