MiFID stands for Markets in Financial Instruments Directive. European Commission first adopted MiFID I in April 2014 and proposed in November 2007, just before the 2008-09 financial crisis with the key objective of increasing competition in financial market and protect consumers. Post Financial crisis in 2008, European Commission submitted proposals to revise the Markets in […]Continue Reading... No Comments.
The European Securities and Markets Authority (ESMA) is a EU financial regulatory institution and European Supervisory Authority which was set up with the aim of enforcing regulation in financial market across EU. It works in the fields of securities regulation to improve the stability and functioning of the European Union Financial Market and increase competition […]Continue Reading... No Comments.
The Dodd-Frank “Wall Street Reform and Consumer Protection Act” (also known as Dodd-Frank act) was passed as a bill by President Barack Obama in 2010. The act was passed after the financial crisis in 2008-09 to plug all the loop holes in the financial industry and avoid any such crisis to happen in future. It […]Continue Reading... No Comments.
Closeout Netting is used when a counterparty is defaulted on its payment and termination/settlement of all the contracts associated with the counterparty need to be completed. It helps to terminate and settle all the net values of all the trades with the counterparty. It has two components, ⦁ Closeout- this enables the other party to […]Continue Reading... No Comments.
Payment Netting is used by the financial institutions on daily basis to combine different types of payments into one single net payment. For Example on a particular day, Company A is expected to pay USD 10 Million as floating rate swap payment and USD 5 million as fixed rate swap payment and expected to receive […]Continue Reading... No Comments.