Non-Collateralization

by

International Legal Research

Information about Non-Collateralization in free legal resources:

Treaties & Agreements

International Organizations

Jurisprudence $ Commentary

European Union

IP Law

Contents

Non-Collateralization

Collateralization of credit exposures generated by bilateral OTC Derivatives is a key risk mitigant broadly used in the market. The benefits are broadly acknowledged and affect dealers and end users, as well as the financial system generally.

However, it is worth noting that in the very early stages of their development, the OTC derivative markets operated on a largely uncollateralized basis. The number of collateralized arrangements as a proportion of the market has evolved as the market itself has grown. (1)

Operational and Procedural Burdens

The first type of consideration for non-collateralization is the operational complexity associated with collateralization (negotiating a legal document, monitoring exposures, making cash transfers, etc.), which imposes a minimum requirement of volume of activity to make it economical for infrequent market participants. Counterparties affected by those considerations may include corporate clients, local authorities, and generally smaller institutions.

At a different level, the complexity of some products or organizational structures and processes (e.g. investment advisor acting on behalf of hundreds of funds/accounts) may also significantly increase the cost and resource requirements. (2)

Liquidity Management

The second type of consideration refers to the requirement for parties to be able to access cash or securities to be posted as collateral in addition to their payment and delivery obligations under the terms of the derivative transactions. As an example of how this type of liquidity management issue might affect a specific group of market participants, it is worth noting references to this issue in the “Corporate concerns about OTC Derivative Regulation” paper published by the European Association of Corporate Treasurers in September 2009. (3) This paper produced by the European Association of Corporate Treasurers (EACT) includes the following statement: “Increased cashflow risk from margining or alternatively not hedging identified risks would require companies to hold more risk capital and available lines of credit. Corporate activity would be reduced with obvious consequences for the real economy, employment etc.” (page 3)

External Restrictions

The third type of consideration is “external” restrictions that are imposed on market participants in the interest of protecting other stakeholders. This could include:

  • Credit agreements protecting other creditors. For example, many loan agreements have negative pledge language with only limited carve outs19 or may have cash flow sweeps for the benefit of the providers of revolving credit facilities.
  • Regulators protecting investors in retail investment products. For example, in certain jurisdictions some types of regulated funds cannot post collateral due to limits on concentration risk or as an absolute prohibition.
  • Budget or other constraints imposed on local authorities or other public or sovereign entities to control their indebtedness and expenses in order to protect the broader public. This type of mechanism is designed to protect public finances and/or ensure prudent spending but may indirectly force dealers to only trade on an entirely unsecured basis.
  • Legal concerns may also inhibit the provision of collateral in relation to particular types of
    institution in certain jurisdictions where the enforceability of collateral arrangements is not
    assured.
  • Tax issues arising in certain jurisdictions may prevent more widespread adoption of collateral arrangements. (4)

Resources

Notes

  1. Market Review of OTC Derivative Bilateral Collateralization Practices. International Swaps and Derivatives Association – March 1, 2010
  2. Id.
  3. Id.
  4. Id.

See Also

  • Collateralization
  • Financial Risk
  • Brokerage
  • Collateral Asset
  • Collateral
  • Credit Risk
  • Prime Brokerage
  • Credit Support
  • Collateral Dispute
  • Commercial Risk
  • Back-To-Back Letter Of Credit
  • Interbank Market

Related Entries of the International Encyclopedia:

  1. Back-To-Back Letter Of Credit A letter of credit raised to purchase goods that will be sold under a different letter of credit. A broker or other intermediary who is the beneficiary under a customer's letter of credit may use that credit as collateral to open a second letter of credit to actually purchase the goods it plans ......
  2. United Nations Convention Against Torture The United Nations Convention Against Torture Name The United Nations Convention Against Torture is the standarized name of one of the International Courts and Tribunals (see the entries in this legal Encyclopedia about court rules and procedural law for more information on some aspects of the [...]...
  3. Extensions of Credit In the United States For information about Extensions of credit in the context of international trade, click here...
  4. Credit Risk Insurance Credit Risk Insurance in International Trade Meaning of Credit Risk Insurance, according to the Dictionary of International Trade (Global Negotiator): Insurance designed to cover risks of nonpayment for delivered goods....
  5. Rehypothecation The act whereby a lender uses negotiable instruments or similar collateral left with him by borrowers as collateral for his own borrowings. Rehypothecation commonly occurs when a member bank pledges eligible customer collateral at the Federal Reserve for a loan. The original borrower's hypotheca......
  6. Confirmed Letter of Credit Confirmed Letter of Credit in International Trade Meaning of Confirmed Letter of Credit, according to the Dictionary of International Trade (Global Negotiator): A letter of credit that contains a guarantee on the part of both the issuing and de advising banks of payment to the seller so long [...]...
  7. Mutual Legal Assistance Treaties In the United States For information about Mutual legal assistance treaties in the context of international trade, click here...
  8. Commercial Risk The risk borne by an exporter that his foreign customer may be unable to pay for merchandise imported under open account terms. Commercial risk is contrasted with political risks, which arise from governmental actions and are unrelated to the financial condition or credit-wor- thiness of the [...]...
  9. International Court of Justice tags Contents Related Tags about International Court of Justice Related Topics about International Court of Justice ”Nicaragua” case – Abdulqawi Ahmed ... Read more...
  10. List of international public law topics Contents List of international public law topics This is a comprehensive list of entries dealing with public international law, including ... Read more...
  11. Bond Investing Investing in BondsFrom an investor's perspective, stocks offer a higher potential return if profits rise, but bonds are generally a safer investment. Stock dividends are paid out of company profits, while bond interest payments are made even if the company is losing money. If a corporat......
  12. List of justice international online resources Contents List of justice international online resources 1. Amnesty International Description Amnesty International is a worldwide campaigning movement that works ... Read more...
  13. International Organization Introduction to International Organization International Organization, a membership group that operates across national borders for specific purposes. Scholars of international relations consider international organizations to have growing importance in world politics. Examples of [...]...
  14. Prison Hello Introduction to Prison Prison, institution designed to securely house people who have been convicted of crimes. These individuals, known as prisoners or inmates, are kept in continuous custody on a long-term basis. Individuals who commit the most serious crimes are sent to prison for one [...]...
  15. Assignment Analyze the Assignment in Legal Research Assignment There is more information about this subjet related to the field of legal research in the legal encyclopedia. Constraints There is more information about this subjet related to the field of legal research in the legal encyclopedia. [...]...
  16. Coface Country Risk Coface Country Risk in International Trade Meaning of Coface Country Risk, according to the Dictionary of International Trade (Global Negotiator): Country risk classification provided by the French company COFACE (Compagnie Française d'Assurance pour le Commerce Extérieur), [...]...
  17. Collateral Estoppel Doctrine Resources See Also Administrative estoppel Defensive collateral estoppel Direct estoppel Issue preclusion Judicial estoppel Res (Res judicata) Verdict, estoppel by...
  18. Collateral Actions Resources See Also Collateral attack...
  19. Collateral Impeachment Resources See Also Collateral attack...
  20. Collateral Consanguinity Resources See Also Collateral heir...
  21. Collateral Relatives Resources See Also Collateral heir...
  22. International Crime law resources Contents International Crime law resources General International Criminal Police Organization (INTERPOL) Introduction; Basic Principles; Administration and Structure; Finances; Machinery for ... Read more...
  23. Asylum Law Contents Refugee & Asylum Law See also Convention Against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment , ... Read more...
  24. International Court of Justice Part 18 Contents International Court of Justice Part 18   322 Developments at the International Criminal Court Construction Site for More Justice: ... Read more...
  25. Credit Spanish Translation of credit This is the legal translation of English to Spanish in relation to credit and / or a definition of this topic: Haber (in Spanish, without translation of the dictionary entry). Spanish Translation of credit This is the legal translation of English to Spanish in [...]...
  26. Filing Company An insurance company that issues a front policy, i.e., issues a policy but retains little or none of the risk exposure, reinsuring it with another carrier.......
  27. Munitions Munitions and the Laws of International Trade Munitions list in Some Countries Export Control in Merger and Acquisitions Registration as a munitions manufacturer Registration as munitions broker Due diligence under the international traffic in arms regulations: Munitions list [...]...
  28. Judicial Cooperation In relation to Inter-American Treaties, Conventions and Agreements adopted within the framework of the OAS The Organization of American States (a list of Members of the Organization of American States is here) adopted the following international instruments regarding Judicial Cooperation, [...]...
  29. International criminal law: Organized Crime and Narcotics Contents International Criminal Law :Organized Crime and Narcotics 1. Major Treaties and Documents United Nations Convention Against Illicit Traffic in ... Read more...
  30. Credit Tranche A lending facility at the International Monetary Fund for nations suffering balance of payments difficulties. Before borrowing in the credit tranche, a nation must have exhausted its gold tranche facility. The gold tranche is equivalent to the amount of gold that a nation has deposited with the IMF,......
  31. Regionalization Regionalization Further ReadingA concise encyclopedia of the United Nations (including Regionalization , H Volger, KA Annan -2010) The Oxford Handbook on the United Nations (TG Weiss - 2007) International Law: A Dictionary (including Regionalization , Boczek, Boleslaw Adam -2005)...
  32. Export Credit Insurance Export Credit Insurance in International Trade Meaning of Export Credit Insurance, according to the Dictionary of International Trade (Global Negotiator): Special insurance coverage for exporters to protect against non payment by the importer (coverage may extend to certain other risks, [...]...
  33. International Courts Contents International Courts and Tribunals Regional Courts List of Regional Tribunals and Courts: American Courts: American Courts, Court of Justice ... Read more...
  34. Convention on Safety of United Nations and Associated Personnel Embracing mainstream international law, this section on convention on safety of united nations and associated personnel explores the context, history and effect of the area of the law covered here. Resources Further Reading The entry "safety of united nations and associated personnel, [...]...
  35. Convention on the Safety of United Nations and Associated Personnel Embracing mainstream international law, this section on convention on the safety of united nations and associated personnel explores the context, history and effect of the area of the law covered here. Resources Further Reading The entry "united nations and associated personnel, [...]...
  36. List of Dictionaries about Criminal Law List of Dictionaries about Criminal Law Cop Talk: A Dictionary of Police Slang: A lively collection of the words and ... Read more...
  37. Guaranty Introduction to Guaranty Guaranty, in law, obligation undertaken by one party to answer for the default of another. It is an agreement by one person to answer to another for the debt, or the performance of some contract or duty in case of default, of a third person who is originally liable for [...]...
  38. Un Security Council Resolutions Implementation United States Targeted Sanctions Implementing United Nations Security Council Resolutions in 2011 United States views on international law (based on the document "Digest of U.S. Practice in International Law"): See information on Nationality, Citizenship and Immigration in this legal [...]...
  39. International law tags Related Tags about International law ”New York Convention 1958” – ”pacta sunt servanda” – Andes Mountains – Bolivia – Burundi ... Read more...
  40. United Nations Secretariat Contents United Nations Secretariat See: ? Charter of the United Nations ? UN: Purposes, principles and membership ? United Nations ... Read more...
  41. Irrevocable Letter of Credit See Letter of Credit.......
  42. Usance Credit Also known as a time credit, a Letter of Credit (q. v.) that provides that the drafts drawn under the credit will mature thirty, sixty, or more days, up to nine months, after sight or date. A letter of credit providing for settlement more than nine months from shipment of the goods is normally in t......
  43. Company Law The Legal History of Company Law This section provides an overview of Company Law Applied Company Law Contents of Applied Company Law Contents of this subject matter include: Introduction; Alternative Business Structures Characteristics of a Company Company's liability in Crime, Contract [...]...
  44. Courts of Justice The Court of Justice of Geneva Name of this Court The Court of Justice of Geneva is the standarized name of one of the National Courts - see the entries in the corresponding legal Encyclopedia (of this project) about court rules and procedural law for more information on some aspects of the [...]...
  45. Collateral Assignment Description of Collateral Assignment Resources See Also Secured Transactions...
  46. List of Justice organizations online resources Contents List of Justice organizations online resources Note: Hyperlinks are not provided because they may contain a citation to an ... Read more...
  47. International Arbitration Treaties Contents International Arbitration Treaties Legal Materials The U.S. Department of State posts links to UNCITRAL materials and other treaties concerning ... Read more...
  48. Inter-american Convention Against Racism OAS Resolution on the Draft Inter-american Convention Against Racism In relation to the international law practice and Oas Resolution on the Draft Inter-american Convention Against Racism in this world legal Encyclopedia, please see the following section: International Human Rights About this [...]...
  49. North American Dredging Company V. Mexico North American Dredging Company v. Mexico Embracing mainstream international law, this section on north american dredging company v. mexico explores the context, history and effect of the area of the law covered here. Resources Further Reading The entry "north american dredging company [...]...
  50. Ne varietur Contents Paraph, Ne varietur A paraph is a signature by a notary on the evidence of an obligation, typically a ... Read more...
  51. International Security Part 25 Contents International Security Part 25   297 National Missile Defence and the ABM Treaty: Considerations of International Security and Law ... Read more...
  52. International Criminal Court Part 39 Contents International Criminal Court Part 39   748 The Quivering Gulliver: U.S. Views on a Permanent International Criminal Court John ... Read more...
  53. Sapphire International Petroleums Limited V. National Iranian Oil Company Sapphire International Petroleums Limited v. National Iranian Oil Company Embracing mainstream international law, this section on sapphire international petroleums limited v. national iranian oil company explores the context, history and effect of the area of the law covered here. Resources [...]...
  54. International organizations articles of conventions Contents International Organizations articles of conventions Agreement Establishing the European Bank for Reconstruction and Development 29.5.1990 Convention Establishing the Multilateral ... Read more...
  55. International Court of Justice Part 21 Contents International Court of Justice Part 21   379 Book Review: Bruce Broomhall, International Justice and the International Criminal Court ... Read more...
  56. Bankable Paper Debt obligations issued or endorsed by persons or firms of sufficiently high credit standing so as to render the instruments acceptable for discount or as collateral by commercial banks.......
  57. Clean Letter of Credit Synonymous with CLEAN CREDIT.......
  58. Unconfirmed Letter of Credit See Letter of Credit.......
  59. List of Advisory Proceedings referred to the International Court of Justice by the General Assembly List of Advisory Proceedings referred to the International Court of Justice by the General Assembly Among the list of Advisory ... Read more...
  60. Documentary Credit Documentary Credit in International Trade Meaning of Documentary Credit, according to the Dictionary of International Trade (Global Negotiator): Documentary credit means the same thing than "letter of credit". Traders and bankers in some parts of the world (US, Asia) tend to use the [...]...
  61. Rollover Credit Rollover Credit in International Trade Meaning of Rollover Credit, according to the Dictionary of International Trade (Global Negotiator): Any line of credit that can be borrowed against up to a stated credit limit and into which repayments go for crediting. See letter of credit....
  62. Criminal Justice Policy Literature Review on Criminal Justice Policy In the Encyclopedia of Public Administration and Public Policy, [1] Barbara Sims offers the following summary about the topic of Criminal Justice Policy: As is the case with any public agency, criminal justice agencies must constantly struggle [...]...
  63. Mutual Legal Assistance in Argentina Mutual Legal Assistance in Argentina List of Mutual Legal Assistance Treaties related to this Country Below is a list of ... Read more...
  64. Mutual Legal Assistance in Uruguay Mutual Legal Assistance in Uruguay List of Mutual Legal Assistance Treaties signed by Uruguay Below is a list of all ... Read more...
  65. International Court of Justice Part 26 Contents International Court of Justice Part 26   424 Australia-Australia Withdraws Maritime Disputes from the Compulsory Jurisdiction of the International ... Read more...
  66. Transferable Letter of Credit A Letter Of Credit (read this and related legal terms for further details) that is transferable from the original beneficiary to a subsequent beneficiary. This type of credit is used when the original beneficiary is a br......
  67. Objection to Reservation Objection to Reservation by Namibia in 2013 United States views on international law [1] in relation to Objection to Reservation by Namibia: On October 17, 2013, the U.S. Mission to the UN sent a diplomatic note to the United Nations, in its capacity as depositary for the International [...]...
  68. Commercial Letters of Credit Commercial Letters of Credit in relation with Letters of Credit This content deals with legal and regulatory aspects of Commercial Letters of Credit covered in connexion with Letters of Credit and banking / lending Institutions....
  69. Collateral Line Resources See Also Descent...
  70. Mutual Legal Assistance in the United Kingdom Mutual Legal Assistance in the United Kingdom List of Mutual Legal Assistance Treaties signed by the United Kingdom Below is ... Read more...
  71. International Court of Justice Part 15 Contents International Court of Justice Part 15   270 GENDER-SENSITIVE JUSTICE AND THE International Criminal Tribunal for Rwanda : LESSONS ... Read more...
  72. Double Taxation Summary of Double Taxation The condition that arises when a multinational firm is taxed on overseas income in both the source country and the country of the corporation's domicile. This problem arises because nations use varying systems of taxation. Recognizing that double taxation is [...]...
  73. List of International Criminal Justice Institutes Contents List of International Criminal Justice Institutes, Organizations, and Resources Alphabetical List Academy of Criminal Justice Sciences Academy of Criminal ... Read more...
  74. Procedural Law Spanish Translation of procedural law This is the legal translation of English to Spanish in relation to procedural law and / or a definition of this topic: Derecho Procesal (in Spanish, without translation of the dictionary entry). Introduction This entry provides an overview of the legal [...]...
  75. Letters Rogatory Contents Letters Rogatory An old edition of the Black’s Law Dictionary defines Letters Rogatory as “A request by one court ... Read more...
  76. Collateral Attack From the book The Clergyman's Hand-book of Law, about Collateral Attack (1): A devise of land to a religious society which will increase the title beyond the amount that is allowed by statute, can not be attacked collaterally by a private individual.548 It is for the State and not for the [...]...
  77. Caribbean Drug Trafficking Caribbean Drug Trafficking The Caribbean, considered a natural bridge between North and South America, serves as a transshipment region for ... Read more...
  78. Draft Inter-american Convention Against Racism Oas Resolution on the Draft Inter-american Convention Against Racism in 2011 United States views on international law (based on the document "Digest of U.S. Practice in International Law"): On June 7, 2011, the General Assembly of the Organization of American States ("OAS") [...]...
  79. International Cybercrime Laws International Cybercrime Laws and Agreements Overview of International Cybercrime Laws and Agreements in relation to cyber crime: [1]Given these challenges, how can national interests be safeguarded in the face of differing international interests and priorities? How can individual [...]...
  80. Libya Sanctions Libya in 2011 United States views on international law (based on the document "Digest of U.S. Practice in International Law"): The United States took several steps in 2011 to protect civilians in Libya and target the regime of Muammar al-Qadhafi in response to its violent repression [...]...
  81. Common Topics Common Topics Arbitration Arms Control Bill of Exchange Cemeteries Church Church Properties Common Law Competition law Contracts Conventions Courts Criminal ... Read more...
  82. Books in International law Contents Books in International law The Trial of Henry Kissinger (Paperback) by Christopher Hitchens 84 – 1,143 published 2001 Black’s ... Read more...
  83. International Court of Justice Part 1 Hello Contents International Court of Justice Part 1   1 Current Legal Developments International Court of Justice Hamid, Abdul Ghafur ... Read more...
  84. International Court of Justice Part 29 Contents International Court of Justice Part 29   469 HAGUE INTERNATIONAL TRIBUNALS: International Court of Justice Leiden Journal of International ... Read more...
  85. Collectibles Vintage Collectibles Vintage...
  86. Federation Of American Controlled Shipping An association of American firms that operate Liberian- and Panamanian-registered tankers, bulk carriers, and specialized vessels. Currently, federation member firms control over forty-three million deadweight tons of foreign shipping. In addition, federation members control approximately one-half t......
  87. Berne Convention Definition of Berne Convention In accordance with the work A Dictionary of Law, this is a description of Berne Convention : The Berne Convention for the Protection of Literary and Artistic Works: an international convention of September 1886 that sets out ground rules for protection of [...]...
  88. Universal Copyright Convention Universal Copyright Convention (UCC) and the GATT Policy Negotiations In relation to the GATT Policy Negotiations, Christopher Mark (1993) provided the following explanation and/or definition of Universal Copyright Convention (UCC): An international agreement on intellectual property [...]...
  89. G-8 Nations Concept of G-8 Nations An introductory definition of G-8 Nations is provided here: The "Group of 8" major industrial nations (now Britain, Canada, France, Germany, Italy, Japan, Russia, and the United States) whose heads of state meet annually to discuss economic and political issues [...]...
  90. Immunities of the United Nations Applicability of Article Vi, Section 22, of the Convention on the Privileges and Immunities of the United Nations Embracing mainstream international law, this section on applicability of article vi, section 22, of the convention on the privileges and immunities of the united nations explores [...]...
  91. Criminal Courts The Central Criminal Court (Thailand) Name of this Court The Central Criminal Court (Thailand) is the standarized name of one of the National Courts - see the entries in the corresponding legal Encyclopedia (of this project) about court rules and procedural law for more information on some [...]...
  92. Criminal Laws Introduction This entry provides an overview of the legal framework of criminal laws, with a description of the most significant features of criminal laws at international level. Related Work and Conclusions Resources See Also References (Papers) Restoring Democratic Moral Judgment Within [...]...
  93. United Nations Introduction to United Nations United Nations (UN), international organization of countries created to promote world peace and cooperation. The UN was founded after World War II ended in 1945. Its mission is to maintain world peace, develop good relations between countries, promote [...]...
  94. United Nations Interregional Crime Justice Research Institute Resources See Also International Organization Foreign Relations Organization United Nations United Nations System...
  95. Law professor, Grand National Assembly, Insurance 251. Law professor (uk) 252. Grand National Assembly (tr) 253. Education insurance 254. Lower Saxony 255. Constitutional law (tr) 256. ... Read more...
  96. Optional Protocol … [to] the UN Conf. on the Law of the Sea Contents Optional Protocol … [to] the UN Conf. on the Law of the Sea   Article I Disputes arising out ... Read more...
  97. United Nations System Part 1 Contents United Nations System Part 1   1 Promoting Space Ventures by Creating an International Space IPR Framework DAVID IRIMIES ... Read more...
  98. List of International Criminal Law Documents List of International Criminal Law Documents Charter of the United Nations Statute of the International Court of Justice Declaration on ... Read more...
  99. Rome Statute of the International Criminal Court Rome Statute of the International Criminal Court The Rome Statute of the International Criminal Court adopted at Rome on 17 ... Read more...
  100. High Tribunals Iraqi High Tribunal Embracing mainstream international law, this section on iraqi high tribunal explores the context, history and effect of the area of the law covered here. Resources Further Reading The entry "iraqi high tribunal" in the Parry and Grant Encyclopaedic Dictionary of [...]...
  101. International Court of Justice Part 22 Contents International Court of Justice Part 22   387 The Belgian Court of Cassation v. the International Court of Justice ... Read more...
  102. International Court of Justice Part 27 Hello Hello Contents International Court of Justice Part 27   436 THE POLITICS OF JUSTICE: WHY ISRAEL SIGNED THE International ... Read more...
  103. Agricultural Trade Development And Assistance Act Known commonly as P.L. 480, a 1954 act of Congress directed at the long-term improvement of the economies of developing nations through the concessional sale or grant of American agricultural products. The act is implemented by the Foreign Agricultural Service of the U.S. Department of Agriculture t......
  104. Carnation Case A suit in which the U.S. Tax Court denied, for income tax purposes, the deduction of sums paid by the Carnation Company to its wholly owned Captive insurance company (read this and related legal terms for further details......
  105. Assistance Mutual Assistance in relation to Inter-American Treaties, Conventions and Agreements adopted within the framework of the OAS The Organization of American States (a list of Members of the Organization of American States is here) adopted the following international instruments regarding Mutual [...]...
  106. Un Immunities Plaintiff's Arguments to Limit or Disregard the UN's Immunities Under the General Convention Lack Merit in 2011 United States views on international law (based on the document "Digest of U.S. Practice in International Law"): There is no merit to Plaintiff's contention [...]...
  107. United Nations General Assembly Resolutions United Nations General Assembly Resolutions Note: for information on United Nations activities in general, see here. United Nations General Assembly ... Read more...
  108. Collateral Collateral Provider He or she is the party that is required, pursuant to the terms of the applicable credit support arrangement, to provide collateral in respect of its obligations. A Collateral Provider is refer to the transferor of collateral (under a title transfer document) or the party [...]...
  109. Collateral Dispute Contents Collateral Dispute Dispute Collateral Call After the margin call notice has been sent, the counterparty will generally want to ... Read more...
  110. Collateral Asset Collateral Asset Trends According to the International Swaps and Derivatives Association: As the use of collateral assets for credit enhancement ... Read more...
  111. Credit Risk Contents Credit Risk Credit Risk and Collateralization Credit risk is the danger that a firm will not receive an amount ... Read more...
  112. Credit Support Contents Credit Support Credit Support Deed and English and New York Credit Support Annexes Collateral is commonly provided in respect ... Read more...
  113. Prime Brokerage Contents Prime Brokerage Prime brokerage is a colloquial term for a number of different relationships between large securities dealers and ... Read more...
  114. Threshold In Collateralization The underlying commercial reason for Thresholds is that often parties will be willing to take a certain amount of credit risk to each other (equal to the Threshold) before requiring collateral to cover any additional risk. Banks, in particular, are in the business of [...]...
  115. Bourse A continental European term for a commodity or stock exchange.......
  116. Financial Risk The risk borne by an exporter that his foreign customer may be unable or unwilling to pay for the merchandise purchased; the financial risk relates purely to commercial considerations and not to such "political" risks as expropriation or inconvertibility of currency.......
  117. Virtual Currency Virtual currency is a digital representation of value that can be traded on the Internet and functions as: a medium of exchange; a unit of account; and/or a store of value, but does not have legal tender status in any jurisdiction. Virtual currency is distinguished from fiat [...]...
  118. Special Purpose Entities Contents Special Purpose Entities Definition of Special Purpose Entities Special Purpose Entities (“SPEs” ) are legal entities created -according with ... Read more...
  119. Alternative Trading Systems Contents Alternative Trading Systems (ATSs) The alternative trading systems, with presence in many of the world’s main financial markets, were ... Read more...
  120. Bases of Government Accounting Contents Bases of Government Accounting Accounting (cash basis and accrual basis) In French: Comptabilité (de caisse et d’exercice)) Government accounting ... Read more...

Leave a Comment