Tag Archives: Investment Banking

• Collateralization

  Posted on April 22, 2017 by Admin in Capital Market, Investment Banking.

  Collateralization or margining is used to reduce credit exposure or credit risk after using netting and other methods. In a break clause, single payment of collateral happens at the beginning of the trade and at the time of cancellation or termination while for reset feature collateral is paid periodically to reduce credit risk exposure due […]

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• Life Cycle Events of Trade

  Posted on April 11, 2017 by Admin in Capital Market, Investment Banking.

  Below are the important Life Cycle Events for Trades (especially OTC Derivatives trades) Amendment: Trade attributes or Contact terms can be modified before maturity date of the trade through mutual agreement with the counterparty. Post amendment, the trade contract may have to undergo post-trade processing again with the new contract details. Amendment can be off […]

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• Trading/ Contract Life cycle

  Posted on April 10, 2017 by Admin in Capital Market, Investment Banking.

  Phase 1: Pre-trade All steps before trading activities are categorized into the pre-trade phase. The below processes are part of Pre-Trade phase 1. On boarding – On boarding is the process of adding a new customer or a trading partner for trading purposes. On boarding exercise includes preparation of service agreements, relationship agreements and finalization […]

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• Global Trade Repository (GTR)

  Posted on April 9, 2017 by Admin in Capital Market, Investment Banking.

  As per Dodd Frank act for USA and all the other acts in different G20 countries, all the OTC derivatives transactions have to be reported to the regulator. Regulators do not have the necessary architecture to collect and store all the transactions in OTC derivatives across different regions. For the purpose, GTR or Global Trade […]

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• MiFID II

  Posted on April 8, 2017 by Admin in Capital Market, Investment Banking.

  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 […]

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