• Credit derivatives

    Posted on September 16, 2016 by Admin in Derivatives, Investment Banking.

    A credit derivative is a financial instrument for which the value is derived from the credit risk on an underlying financial asset. These are bilateral contracts between a buyer and seller under which the seller sells protection to the buyer against the credit risk of the underlying asset. A credit event is an event which […]

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  • OTC Derivatives

    Posted on September 15, 2016 by Admin in Derivatives, Investment Banking.

    OTC (Over the Counter) Derivatives are customized and privately negotiated contracts for which the terms and conditions of the contract are mutually decided by the parties involved in the transaction. These contracts are traded and negotiated directly between two parties without being involved with any Exchange – which gives the Over the counter name. OTC […]

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  • Exchange Traded Derivatives

    Posted on September 15, 2016 by Admin in Derivatives, Investment Banking.

    Exchange Traded derivatives (ETD) are kind of derivatives products that are traded via an approved exchange or an intermediary to hedge credit, counterparty and other risks. A derivatives exchange acts as an intermediary to all related transactions, and in turns takes margin deposit from both the buyers and sellers to mitigate credit risk. For ETD, […]

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  • Volcker Rule Reporting Requirements

    Posted on September 14, 2016 by admin in Investment Banking.

    Below seven keys metrics are expected to be reported as a part of Volcker Reporting. These metrics are applicable for all the trading desks. 1. Risk and Position Limits and Usage Define the amount of risks that any trading desk is allowed to take. This risk cap can be different for different trading desks Risk […]

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  • Volcker Rule

    Posted on September 14, 2016 by admin in Investment Banking.

    The Volcker Rule, named after the former Federal Reserve Chairman Paul Volcker, was a part of the famous Dodd Frank act which was passed in response of the 2008 financial crisis in order to avoid any such financial crisis in future. The bill requires all the investment banks coming under Volcker rule to mandatorily comply […]

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