Tag Archives: Exposure
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...
DFA and Volcker rule (Proprietary Trading)
Federal Regulators in the United States are moving ahead with a rule that would ban banks from trading for their own profit.
This rule – popularly known as Volcker Rule – is covered under Section 619 of Dodd Frank Act and contains two broad...
Order Types in Market Place
For effective dealing in markets, resort to order placement is very important. For this, one should be familiar with different types of orders prevailing in different markets.
This post, tries to capture some basic details of various orders...
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...
Trends in Risk and Margin
Any activity is associated with risk – a loss or gain. Financial risk management is not about avoiding risk. Rather, it is about understanding and communicating risk, so that risk can be taken more confidently and in a better way. (David Koenig,...
Hedge Funds Demystified
What are Hedge Funds?
Investment pools, mainly for rich individuals and large institutions that can take risks as they play both sides of various stock, bond, or currency markets.
Loosely regulated private pools of investment capital that can...
Marketing tips – experience sharing
In my earlier role as a banker (in India and abroad), I have lived through some very difficult situations in convincing customers and winning them over to my bank
To facilitate me, from time to time, I have consulted senior bankers -fellow /...
Principles for sound stress testing practices in banks
According to Bank for International Settlements, stress testing is an important risk management tool that is used by banks as part of their internal risk management exercise. It is especially important after long periods of benign economic and...
Risks associated with investments
In any investment, an investor is exposed to several kinds of risks. The risks associated with investments are liquidity risk, market risk, credit risk, operational risk, prepayment risk and extension risk. If the investor decides to go in for...
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...
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