FIMMDA CODE OF CONDUCT FOR DERIVATIVES TRANSACTIONS

Size: px
Start display at page:

Download "FIMMDA CODE OF CONDUCT FOR DERIVATIVES TRANSACTIONS"

Transcription

1 FIMMDA CODE OF CONDUCT FOR DERIVATIVES TRANSACTIONS (16 th AUGUST, 2007) FIXED INCOME MONEY MARKET & DERIVATIVES ASSOCIATION OF INDIA

2 INTRODUCTION FIMMDA Code of Conduct for Derivatives Transactions In India, the spot and forward foreign exchange market has been flourishing for a very long time now and had been well established with detailed guidelines and market practices already in place before Derivatives were introduced in the Indian Market in a limited way in 1997 by RBI and then supplemented further by the introduction of INR IRSs in 1999 and INR FXOs in However, it is only in the last 3 years that the market has really started accepting and using derivatives at a broad level and this has led to the significant growth in the use and spread of various kinds of derivative products in the market. It may be noted that even though the usage of derivative transactions has grown in recent past, a large amount of trading volumes is contributed to by vanilla products like Rupee IRS, FC-Rupee swaps, vanilla FC-Rupee options. Innovations have been limited to use of complexities in structures for FX leg of these transactions and variations in structures of vanilla FC-Rupee options. In the meantime, the regulatory regime for use of derivative products has undergone significant changes over time. These changes have evolved in a piecemeal fashion depending upon the requirements of a particular market and specific market conditions. There has been significant liberalization in the regulations relating to usage of Foreign exchange derivatives in recent years particularly in the wake of FEMA. The market still suffers from several structural shortcomings including lack of clear accounting and disclosure standards for derivative transactions, lack of adequate knowledge of uses and risks inherent in derivative transactions particularly those involving complex structures, legal uncertainties surrounding the use of OTC derivatives etc and uncertainties about regulations with regard to certain complex products. In this context, a need was felt to evolve a code of conduct in respect of derivative transactions particularly those involving end users to ensure a minimum common standard of market practices. Accordingly, FIMMDA assigned the task of coming out with a detailed Code of Conduct for the derivatives market to a subcommittee of its Market Practices Committee. It is expected that this code of conduct would lay out guidelines to be followed by all FIMMDA members and other market participants while undertaking derivatives transactions. Such guidelines would broadly address issues relating to (a) Suitability and Appropriateness standards and procedures, (b) standards for reasonability of rates, (c) guidelines to avoid transactions that (irrespective of accounting standards) could result in acceleration/deferment of gains or losses and (d) guidelines for introduction of new products in the market. COVERED ENTITIES All Market Participants like Authorised Dealers (ADs) and Primary Dealers (PDs) are expected to follow and implement these guidelines. All other market participants are also expected to be aware of these guidelines.

3 COVERED TRANSACTIONS FIMMDA Code of Conduct for Derivatives Transactions This code of conduct will apply to all OTC Derivative products in the Indian Market. The scope of the OTC derivative transactions covered by this Code of conduct is intended to be very broad and to include, without limitation, currency swaps, interest rate swaps, commodity swaps, rate and spread locks, foreign exchange options, debt options and currency options, forward foreign exchange transactions, forward rate transactions, nondeliverable forward transactions, caps, floors, collars and swap options or any combination of these transactions. Derivative transactions also include types of transactions that are similar to any transaction referred to above that is currently or in the future becomes recurrently entered into in the financial markets and which is a forward, swap, option or other derivative on one or more rates, currencies, commodities, credit, equity, underlying asset class or other hybrid instrument or measures of economic risk or value. These transactions may be referred to herein collectively as derivative transactions and as used herein refers to any or all of these types of transactions, as the context requires. For the avoidance of doubt, this Code of conduct does not extend to exchange traded products like equity futures or equities or warrants. SUITABILITY AND APPROPRIATENESS NEED FOR ENSURING APPROPRIATENESS It is important that the transactions undertaken by the bank s customers are well understood and are consistent with their internal policies as well as their risk appetite. If the customers don t understand the risks inherent in the transactions then they may be unable to anticipate the obligations that these transactions may entail in future and hence lead to potential for dispute, unacceptable level of credit losses for the bank as well as damage to the bank s reputation. In general, the primary onus for ensuring the appropriateness of any transaction lies with the customer however for the above reasons, it is important for the bank as well to satisfy itself that the transactions entered into with customers are Suitable and Appropriate. WHAT IS APPROPRIATENESS? Appropriateness is a result of several factors, a few of which are listed below: The customer understands the terms, payoffs and mechanics of the transaction. The customer clearly understands the risks involved and more specifically the downside risk involved in the transaction and the circumstances in which such risks can unfold. The transaction is consistent with the customer s formal/informal risk management

4 policy/strategy which inter-alia covers the nature and type of transactions, risk appetite and control procedures. The transaction is consistent with the stated objective of the customer and is in line with the past usage of similar transactions. The motivation of the customer for undertaking the transaction should be understood by the bank. The customer is legally capable of undertaking the transaction. GUIDELINES FOR ENSURING APPROPRIATENESS OF TRANSACTIONS The key to ensuring appropriateness is to gain in-depth knowledge about the customer. The bank should learn and understand the customer s business and the nature of risks arising in it. It should also understand the customer s past experience while dealing with similar products and his/her level of expertise. The banks may use a structured questionnaire form to aid their sales staff in understanding the customer profile and the same may be used for documenting such internal discussions on Customer Appropriateness. A representative format of such a questionnaire is attached in Annexure (1). The banks may use the data generated by such discussions to categorise the customers into various classes based upon their level of sophistication. Similarly, the products being offered by the bank may also be categorized into various classes based upon the level of complexity and nature of risks involved. In general, a concept of matching a class of customers with a particular type of products (as defined above) may be used to determine the suitability of a particular transaction to the customer. A representative format of such a classification is attached in Annexure (2). Such a classification process, as described above, should be undertaken by front office in consultation with certain independent control function e.g. Market Risk Management, Credit risk Management etc. The banks may also institute an exception process for approving certain transactions specifically for certain customers depending on the particular circumstances. Such a process should require written documentation of the need for the exception. The bank should also put in place a policy with regard to transactions that are deemed inappropriate by the bank for a customer but where the customer is still keen to undertake the transaction, even after the bank has disclosed its opinion to the customer. In cases where the bank is dealing with a customer through another Intermediary Bank, due to lack of credit appetite (either tenor or quantum), (the distinction from normal Inter-bank transactions being that the customer transaction is originated by the first bank), the bank should ensure a Suitability and Appropriateness review of the Intermediary Bank as its direct customer and the Intermediary Bank should ensure a Suitability and Appropriateness review of the end Customer.

5 RISK DISCLOSURE FIMMDA Code of Conduct for Derivatives Transactions While ensuring suitability of the transaction to the customer, it is also important that banks adequately disclose the inherent risks in the transaction (based upon the level of sophistication and complexity of transaction) to the customer. From a best practice point of view, the banks may include such a disclosure in the term sheets given to the customers. The disclosure may (but not necessarily always), depending on the level of complexity of the transaction, include a detailed scenario analysis where the payouts from the transaction under different combinations of the underlying market factors should be spelt out clearly. Such an analysis should cover both the positive and negative scenarios, from the customer s point of view, evenly and should spell out any assumptions made for the scenario analysis. The bank should refrain from undertaking any transactions where the bank is acting as a formal advisor to the customer while deciding upon the transaction. REASONABILITY OF RATES The banks should ensure that all transactions whether fresh, rollovers or modifications/ amendments of existing transactions are at prevailing Market rates. In order to arrive at reasonability of the rates/prices the banks may differentiate between transactions entered into with professional counterparties (acting as market-makers) and customer transactions, where a credit risk element is embedded in pricing of the transactions. Significant deviations from internally defined rate reasonability bands for both types of transactions should be subject to an internal review process. This process would ensure that in case of dealings with professional counterparties there is no concealment of profit or loss by dealers. While in case of customer transactions this would ensure prevention of potential disputes/litigation risk on account of excessive customer spread. TRANSACTIONS POTENTIALLY RESULTING IN DEFERMENT OF LOSSES OR ACCELERATION OF GAINS Banks should not enter in transactions at rates, strikes or reference levels that differ materially from market levels. This should apply to all transactions whether fresh, rollovers or modifications / amendments of existing transactions. Such transactions could also be materially altering normal cash flows, either by creating an advance or by deferring a payment, resulting in a deferral or acceleration of gains or losses for tax, accounting, financing or other purposes. In determining whether a particular transaction is of the above nature, the transaction should be evaluated as a whole and not any single part or leg of the transaction.

6 Few examples of such transactions are enumerated below (This is not an exhaustive list): An interest rate swap where, in exchange for an up-front payment, the counterparty agrees to pay an above-market fixed rate over time and receive an at market floating rate; A currency swap where a client pays an above-market coupon in one currency, receives a market coupon in a second currency, and is compensated at maturity by exchanging notional principal at a rate more advantageous than the trade date spot rate; An option transaction where a client sells or buys a deeply in-the-money option. This will not apply to changes that are a result of a bona fide error or misunderstanding in the original Transaction. This will also not apply in case of a deal being written by the bank as a reversal of a previous customer deal. Banks should evolve their own internal guidelines to define what constitutes a Deeply in-themoney option. This could be based on the probability of exercise of the option at inception measured either by the delta of the option in case of a simple call/put option, probability of payout in case of digital options and a combination of both the above in case of barrier options. Since the probability of exercise of an ATMF option is about 50% at inception and the probability of exercise of a fully in-the-money option is 100%, an intermediate approach could be looked at for the above definition. Banks should also put in place an internal process to ensure that amendments/modifications/rollovers of existing transactions are not undertaken with an objective of concealment/deferment of gains or losses by the counterparty but should have an economic rationale. In case a bank wishes to enter into a transaction of the above-mentioned nature due to a legitimate customer requirement, the same should be approved internally, at a minimum, by an independent control function (apart from the Front Office) e.g. Market Risk, Credit Risk etc. NEW PRODUCTS PROCEDURES Banks should put in place a framework for introduction of new products, which involves consideration of the various risks involved in the product viz., Market Risk, Credit Risk, Legal risk, Compliance risk and Operational risk etc. The internal note dealing with the introduction of new products should be approved by the relevant control functions as mentioned above as well as by accounting department for proper accounting treatment in bank s books. If the bank is unsure about the conformity of new products vis-à-vis existing regulations, it may choose to bring such matters to the attention of Product Development Committee/Market Practices Committee of FIMMDA that can in turn seek necessary clarifications, if required, from the regulator.

7 ANNEXURE 1: APPROPRIATENESS MEMO Customer Name : Date : Products : i) Why is the customer doing these transactions? How do the transactions fit the customer's business? ii) What is the company's general view toward derivatives and how does the company use them? Do we understand the objectives of the customer with respect to derivatives? What are they? iii) Does the client have formal/ informal derivatives policies? What are they? iv) Does the counterparty have the legal authority to enter into derivatives transactions? Is the company allowed to use derivatives under the terms of its constituent documents? Is there any limitation on specific types of derivatives, or caveats over capacity (e.g. "only if hedging")? v) How has the client used derivatives in the past and in what new areas are they applying derivatives? Are recent derivatives transactions consistent with the past; if not, why? vi) How sophisticated is the company? Do they have their own pricing models? Do they build their own spreadsheets? Do they have access to market data (e.g. Reuters, Telerate, Bloomberg)? vii) Is the bank appointed as an advisor to the company? viii) At what level are derivatives approved at the company? How active is senior management in decision making and/ or monitoring derivatives activity? ix) Is there evidence of "doubling up" or similar activity to erase earlier losses? Treasury Marketing Officer Approver 1 Approver 2

8 ANNEXURE 2: PRODUCT / CLIENT CLASSIFICATION The types of products should at a minimum be classified into two categories. Category, A, which includes most of the simple derivatives, like IRS, currency swaps, simple options etc. or their combinations. It is expected that generic, non-leveraged, non-complex transactions with low or predictable market risk will be categorized as Category A. In general, if a product is widely traded and understood by the market as a whole (as opposed to a specific segment of the market) it is expected that it would be categorized as Category A. Additionally this category may include structured transactions that are a combination of transactions where the economic result is a Category A-like exposure although some parts of the transaction may be more complex when viewed in isolation. Non-generic, leveraged, and/or complex transactions, which may have high, unpredictable or asymmetric market risk, should be categorized as Category B. This category may include, by way of example, transactions with non-linear payouts or terminations, transactions with multipliers or exponents, transactions where the payout formula is particularly complex etc. Category B transactions shown, on the basis of market developments, to have become capable of being treated as Category A transactions can be transferred to Category A with the consultation of the relevant Approval Group within the bank. Similarly, counterparties may also be classified into at least two categories. Category 1 could the counterparties, which are sophisticated and understand all sorts of derivatives very well and have been known to use them extensively. Category 2 would be the other counterparties who are relatively less sophisticated, may not have had too much experience in the use of derivatives etc. Category A products would then be suitable for all categories of customers while category B products would only be suitable for Category 1 customers directly and in certain situations, subject to other approvals internally in the bank to category 2 customers. There may also be different level of risk disclosures required for the different categories of products and customers and can be specified by the banks internally.

RBI/ /243 DBOD.No.BP.BC. 44 / / November 2, 2011

RBI/ /243 DBOD.No.BP.BC. 44 / / November 2, 2011 RBI/2011-12/243 DBOD.No.BP.BC. 44 /21.04.157/2011-12 November 2, 2011 The Chairman and Managing Directors/ Chief Executive Officers of All Scheduled Commercial Banks (excluding RRBs and LABs), All India

More information

CHAPTER 29 DERIVATIVES

CHAPTER 29 DERIVATIVES CHAPTER 29 DERIVATIVES 1 CHAPTER 29 DERIVATIVES INDEX Para No TOPIC Page No 29 Introduction 3 29 1 Foreign Currency Option 3 29 2 Foreign Currency Rupee Swaps 4 29 2 1 SWAPS 5 29 2 2 Currency Swaps 5 29

More information

FOREIGN EXCHANGE RISK MANAGEMENT

FOREIGN EXCHANGE RISK MANAGEMENT FOREIGN EXCHANGE RISK MANAGEMENT 1 RISKS BEING COVERED Foreign Exchange Risk Management primarily tries to mitigate the Exchange rate risk arising out on the risk of an investment's value changing due

More information

FIMCIR/ /60. March 17, To, ALL FIMMDA MEMBERS, VALUATION OF INVESTMENTS AS ON 31 ST MARCH 2008

FIMCIR/ /60. March 17, To, ALL FIMMDA MEMBERS, VALUATION OF INVESTMENTS AS ON 31 ST MARCH 2008 FIMCIR/2007-08/60 March 17, 2008 To, ALL FIMMDA MEMBERS, VALUATION OF INVESTMENTS AS ON 31 ST MARCH 2008 In accordance with the RBI Master Circular no. DBOD No BP.BC.15/21.04.141/2007-08 dated July 2,

More information

RESERVE BANK OF INDIA RBI/ / 136 DBOD.No.BP.BC. 27 / / August 2, 2011

RESERVE BANK OF INDIA  RBI/ / 136 DBOD.No.BP.BC. 27 / / August 2, 2011 RESERVE BANK OF INDIA www.rbi.org.in RBI/2011-12/ 136 DBOD.No.BP.BC. 27 / 21.04.157 / 2011-12 August 2, 2011 The Chairman and Managing Directors/ Chief Executive Officers of All Scheduled Commercial Banks

More information

Comprehensive guidelines on derivatives

Comprehensive guidelines on derivatives ANNEX Comprehensive guidelines on derivatives 1. Definition of a Derivative A derivative 1 is a financial instrument: (a) whose value changes in response to the change in a specified interest rate, security

More information

FIMCIR/ /45. March 1, To, ALL FIMMDA MEMBERS. VALUATION OF INVESTMENTS AS ON 31 st MARCH 2012

FIMCIR/ /45. March 1, To, ALL FIMMDA MEMBERS. VALUATION OF INVESTMENTS AS ON 31 st MARCH 2012 FIMCIR/2011-12/45 March 1, 2012 To, ALL FIMMDA MEMBERS VALUATION OF INVESTMENTS AS ON 31 st MARCH 2012 In accordance with the RBI Master Circular no. DBOD No 19/21.04.141/2011-12 dated July 1, 2011, FIMMDA

More information

Financial instruments and related risks

Financial instruments and related risks Financial instruments and related risks Foreign exchange products Money Market products Capital Market products Interest Rate products Equity products Version 1.0 August 2007 Index Introduction... 1 Definitions...

More information

Financial Derivatives

Financial Derivatives Derivatives in ALM Financial Derivatives Swaps Hedge Contracts Forward Rate Agreements Futures Options Caps, Floors and Collars Swaps Agreement between two counterparties to exchange the cash flows. Cash

More information

Financial Instruments: basic definitions and derivatives

Financial Instruments: basic definitions and derivatives Risk and Accounting Financial Instruments: basic definitions and derivatives Marco Venuti 2018 Agenda Overview Definition of Financial Instrument Definition of Financial Asset Definition of Financial liability

More information

METHODOLOGY FOR COMPUTATION OF BENCHMARK FORWARD PREMIA AND MIFOR CURVE SECTION 1: OVERVIEW OF THE INDIAN FX SWAP MARKET

METHODOLOGY FOR COMPUTATION OF BENCHMARK FORWARD PREMIA AND MIFOR CURVE SECTION 1: OVERVIEW OF THE INDIAN FX SWAP MARKET METHODOLOGY FOR COMPUTATION OF BENCHMARK FORWARD PREMIA AND MIFOR CURVE Golaka C Nath 1, Sahana Rajaram 2 and Manoel Pacheco 3 1.1 Introduction SECTION 1: OVERVIEW OF THE INDIAN FX SWAP MARKET Foreign

More information

FIMCIR/ /41. March 1, Amended as on September 23, 2013* To, ALL FIMMDA MEMBERS. VALUATION OF INVESTMENTS AS ON 31 st MARCH 2013

FIMCIR/ /41. March 1, Amended as on September 23, 2013* To, ALL FIMMDA MEMBERS. VALUATION OF INVESTMENTS AS ON 31 st MARCH 2013 FIMCIR/2012-13/41 March 1, 2013 Amended as on September 23, 2013* To, ALL FIMMDA MEMBERS VALUATION OF INVESTMENTS AS ON 31 st MARCH 2013 In accordance with the RBI Master Circular no. DBOD No. BP. BC.13/21.04.141/2012-13

More information

GENERAL DISCLOSURE STATEMENT 2 NATURE AND CHARACTERISTICS OF DERIVATIVES THE CHARACTERISTICS OF DERIVATIVES GENERALLY...4

GENERAL DISCLOSURE STATEMENT 2 NATURE AND CHARACTERISTICS OF DERIVATIVES THE CHARACTERISTICS OF DERIVATIVES GENERALLY...4 6 th Floor, 1 St. Martin s Le Grand, London EC1A 4BB Tel: +44 (0) 20 7489 6600 GENERAL DISCLOSURE STATEMENT Contents 1 INTRODUCTION...3 2 NATURE AND CHARACTERISTICS OF DERIVATIVES...4 2.1 THE CHARACTERISTICS

More information

Functional Training & Basel II Reporting and Methodology Review: Derivatives

Functional Training & Basel II Reporting and Methodology Review: Derivatives Functional Training & Basel II Reporting and Methodology Review: Copyright 2010 ebis. All rights reserved. Page i Table of Contents 1 EXPOSURE DEFINITIONS...2 1.1 DERIVATIVES...2 1.1.1 Introduction...2

More information

Information Statement & Disclosure for Material Risks

Information Statement & Disclosure for Material Risks Information Statement & Disclosure for Material Risks Material Risks CFTC Rule 23.431(a)(1) requires Wells Fargo Bank, N.A. ( WFBNA, we, us or our ) to disclose to you the material risks of a swap before

More information

Please refer to the Thai text for the official version

Please refer to the Thai text for the official version Unofficial Translation by the courtesy of The Foreign Banks' Association This translation is for the convenience of those unfamiliar with the Thai language. To Manager Please refer to the Thai text for

More information

NEW JERSEY EDUCATIONAL FACILITIES AUTHORITY SWAP AND DERIVATIVE POLICY. Adopted: October 26, 2005

NEW JERSEY EDUCATIONAL FACILITIES AUTHORITY SWAP AND DERIVATIVE POLICY. Adopted: October 26, 2005 NEW JERSEY EDUCATIONAL FACILITIES AUTHORITY SWAP AND DERIVATIVE POLICY Adopted: October 26, 2005 A. GENERAL NEW JERSEY EDUCATIONAL FACILITIES AUTHORITY SWAP AND DERIVATIVE POLICY 1) Scope and Purpose 2)

More information

Special Considerations in Auditing Complex Financial Instruments Draft International Auditing Practice Statement 1000

Special Considerations in Auditing Complex Financial Instruments Draft International Auditing Practice Statement 1000 Special Considerations in Auditing Complex Financial Instruments Draft International Auditing Practice Statement CONTENTS [REVISED FROM JUNE 2010 VERSION] Paragraph Scope of this IAPS... 1 3 Section I

More information

भ रत य रज़वर ब क RESERVE BANK OF INDIA

भ रत य रज़वर ब क RESERVE BANK OF INDIA भ रत य रज़वर ब क RESERVE BANK OF INDIA www.rbi.org.in FINANCIAL MARKETS REGULATION DEPARTMENT Notification No. FMRD.DIRD.XX /2019 dated April XX, 2019 Rupee Interest Rate Derivatives (Reserve Bank) Directions,

More information

Notification of the Bank of Thailand No. FPG. 13/2558 Re: Regulations on Permission for Commercial Banks to Engage in Market Derivatives

Notification of the Bank of Thailand No. FPG. 13/2558 Re: Regulations on Permission for Commercial Banks to Engage in Market Derivatives Unofficial Translation This translation is for the convenience of those unfamiliar with the Thai language Please refer to Thai text for the official version -------------------------------------- Notification

More information

Statement of Statutory Accounting Principles No. 31

Statement of Statutory Accounting Principles No. 31 Superseded SSAPs and Nullified Interpretations SSAP No. 31 Statement of Statutory Accounting Principles No. 31 Derivative Instruments STATUS Type of Issue: Issued: Common Area Initial Draft Effective Date:

More information

FIMCIR/ /46. March 31, 2015 ALL FIMMDA MEMBERS. Dear All, Re: VALUATION OF INVESTMENTS AS ON 31 st MARCH 2015

FIMCIR/ /46. March 31, 2015 ALL FIMMDA MEMBERS. Dear All, Re: VALUATION OF INVESTMENTS AS ON 31 st MARCH 2015 FIMCIR/2015-16/46 March 31, 2015 To ALL FIMMDA MEMBERS Dear All, Re: VALUATION OF INVESTMENTS AS ON 31 st MARCH 2015 In accordance with the RBI Master Circular No. DBOD No BP.BC.20/21.04.141/2014-15, dated

More information

INVESTMENT SERVICES RULES FOR RETAIL COLLECTIVE INVESTMENT SCHEMES

INVESTMENT SERVICES RULES FOR RETAIL COLLECTIVE INVESTMENT SCHEMES INVESTMENT SERVICES RULES FOR RETAIL COLLECTIVE INVESTMENT SCHEMES PART B: STANDARD LICENCE CONDITIONS Appendix VI Supplementary Licence Conditions on Risk Management, Counterparty Risk Exposure and Issuer

More information

Product Disclosure Statement

Product Disclosure Statement Product Disclosure Statement Vanilla Options and Structured Options Issued by EncoreFX (NZ) Limited 24th March 2017 This Product Disclosure Statement replaces the Product Disclosure Statement Vanilla Options

More information

TREASURY MANAGEMENT PROCEDURES 2014

TREASURY MANAGEMENT PROCEDURES 2014 TREASURY MANAGEMENT PROCEDURES 2014 Issued by: Chief Financial Officer Date: 15 September 2014 Date Amended: 31 May 2017 (administrative amendments) Signature: Name: Mark Easson 1 Purpose and application

More information

INTEREST RATE DERIVATIVESRISK DISCLOSURE NOTICE

INTEREST RATE DERIVATIVESRISK DISCLOSURE NOTICE 85 Fleet Street, 4th Floor, London EC4Y 1AE, United Kingdom Phone +44 0 207 583 3257 Fax +44 0 207 822 0779 INTEREST RATE DERIVATIVESRISK DISCLOSURE NOTICE This Notice is intended solely to inform you

More information

3. Predetermined Short-Term N et Drains on Foreign Currency Assets (Nominal Value): Section II of the Reserves Data Template

3. Predetermined Short-Term N et Drains on Foreign Currency Assets (Nominal Value): Section II of the Reserves Data Template 3. Predetermined Short-Term N et Drains on Foreign Currency Assets (Nominal Value): Section II of the Reserves Data Template 138. Section II of the reserves data template is used to report the authorities

More information

RISK DISCLOSURE STATEMENT

RISK DISCLOSURE STATEMENT RISK DISCLOSURE STATEMENT This General Risk Disclosure (the Notice ) supplements the Lloyds Bank Corporate Markets Plc General Terms of Business (the General Terms ), which you may receive from us from

More information

Proposal to study. Imbalances Created Because Of Structured Products in India Equity Markets

Proposal to study. Imbalances Created Because Of Structured Products in India Equity Markets A Proposal to study Imbalances Created Because Of Structured Products in India Equity Markets Executive Summary We propose to look at effect of hedging of structured products by dealers on equity and equity

More information

There may be no secondary market for Notes and, even if there is, the value of Notes will be subject to changes in market conditions

There may be no secondary market for Notes and, even if there is, the value of Notes will be subject to changes in market conditions RISK FACTORS The following section does not describe all the risks (including those relating to each prospective investor s particular circumstances) with respect to an investment in the Notes of a particular

More information

2. Statutory disclosures as per RBI Provisions and contingencies recognised in the Profit and Loss Account comprise of:

2. Statutory disclosures as per RBI Provisions and contingencies recognised in the Profit and Loss Account comprise of: NOTES forming part of the financial statements for the year ended 31 March, 2016 (Currency: In Indian Rupees) 1. The shareholders of the Bank at the 20 th Annual General Meeting held on 27 June, 2014,

More information

DRAFT. Triennial Central Bank Survey of Foreign Exchange and OTC Derivatives Markets

DRAFT. Triennial Central Bank Survey of Foreign Exchange and OTC Derivatives Markets DRAFT Triennial Central Bank Survey of Foreign Exchange and OTC Derivatives Markets Reporting guidelines for amounts outstanding at end-june 2019 for non-regular reporting institutions Monetary and Economic

More information

Scenario-analysis, with approximate probabilities, may be presented to show impact of unattractive scenarios on company s financial performance.

Scenario-analysis, with approximate probabilities, may be presented to show impact of unattractive scenarios on company s financial performance. Managiing IIntterestt Ratte Exposure Naatturree off intteerreesstt i rraattee eexxpossurree US company borrows $100 million for 5 yrs @ 3-m Libor+100bps. Reminder: Libor rate used to fix coupon is observed

More information

Important Information about Structured Products

Important Information about Structured Products Robert W. Baird & Co. Incorporated Important Information about Structured Products Definition and Background Structured products, as described by the Financial Industry Regulatory Authority (FINRA), are

More information

HDFC MUTUAL FUND INVESTMENT VALUATION POLICY AND PROCEDURES

HDFC MUTUAL FUND INVESTMENT VALUATION POLICY AND PROCEDURES HDFC MUTUAL FUND INVESTMENT VALUATION POLICY AND PROCEDURES 1 INDEX Sr. No: Particular Page No(s) I Introduction 3 II Purpose 3 III Policy, Procedure & Methodology for valuation of securities/assets 3

More information

Interest Rates & Credit Derivatives

Interest Rates & Credit Derivatives Interest Rates & Credit Derivatives Ashish Ghiya Derivium Tradition (India) 25/06/14 1 Agenda Introduction to Interest Rate & Credit Derivatives Practical Uses of Derivatives Derivatives Going Wrong Practical

More information

Debt Valuation Policy. March 2017

Debt Valuation Policy. March 2017 Debt Valuation Policy March 2017 1 History Sheet Date Particulars Approved By Signature Nov 2005 Incorporation of Policy Version 1.0 Sep 2006 Incorporation of Policy Version 2.0 Nov 2007 Incorporation

More information

MiFID II: Information on Financial instruments

MiFID II: Information on Financial instruments MiFID II: Information on Financial instruments A. Introduction This information is provided to you being categorized as a Professional client to inform you on financial instruments offered by Rabobank

More information

Market Risk Guidance Notes

Market Risk Guidance Notes Market Risk Guidance Notes Prudential Supervision Department Document Issued: 2 GUIDANCE NOTE ON: THE MEASUREMENT OF EXPOSURE TO MARKET RISK FOR RESERVE BANK CAPITAL ADEQUACY AND DISCLOSURE PURPOSES The

More information

FACOR ALLOYS LIMITED RISK MANAGEMENT POLICY

FACOR ALLOYS LIMITED RISK MANAGEMENT POLICY RISK MANAGEMENT POLICY Risk Management Policy OVERVIEW This is in compliance with Section 134 (3) (n) of the Companies Act, 2013 and Clause 49 (VI) of the Listing Agreement which requires the Company to

More information

3-MONTH AUD STRUCTURED DEPOSIT LINKED AUD/USD ( SD )

3-MONTH AUD STRUCTURED DEPOSIT LINKED AUD/USD ( SD ) 3-MONTH AUD STRUCTURED DEPOSIT LINKED AUD/USD ( SD ) Final application date: 12 September 2014 (Subject to change without prior notice) SD is a deposit designed to enable Investors to potentially earn

More information

Dear All, Re: VALUATION OF INVESTMENTS AS ON 31st MARCH 2014 REVISED

Dear All, Re: VALUATION OF INVESTMENTS AS ON 31st MARCH 2014 REVISED FIMCIR/2013-14/50 March 28, 2014 To ALL FIMMDA MEMBERS Dear All, Re: VALUATION OF INVESTMENTS AS ON 31st MARCH 2014 REVISED The guidelines applicable for valuation as on 31st March 2014 were issued vide

More information

Methodology Note for Turnover Statistics of Derivatives traded by Domestic Brokerage Houses, Commercial and Development Banks

Methodology Note for Turnover Statistics of Derivatives traded by Domestic Brokerage Houses, Commercial and Development Banks Methodology Note for Turnover Statistics of Derivatives traded by Domestic Brokerage Houses, Commercial and Development Banks 1. Introduction Financial transactions known as derivatives allow participants

More information

DISPUTES OVER INTEREST RATE PRODUCTS

DISPUTES OVER INTEREST RATE PRODUCTS April 2011 DISPUTES OVER INTEREST RATE PRODUCTS 1. Background Complaints to banks about interest rate products have increased greatly as a result of the unprecedented downturn in interest rates. Bank of

More information

GENERAL DESCRIPTION OF THE NATURE AND RISKS RELATED TO FINANCIAL INSTRUMENTS

GENERAL DESCRIPTION OF THE NATURE AND RISKS RELATED TO FINANCIAL INSTRUMENTS GENERAL DESCRIPTION OF THE NATURE AND RISKS RELATED TO FINANCIAL INSTRUMENTS Introduction This document is not intended to present in an exhaustive manner the risks associated with the financial instruments

More information

100% Coverage with Practice Manual and last 12 attempts Exam Papers solved in CLASS

100% Coverage with Practice Manual and last 12 attempts Exam Papers solved in CLASS 1 2 3 4 5 6 FOREIGN EXCHANGE RISK MANAGEMENT (FOREX) + OTC Derivative Concept No. 1: Introduction Three types of transactions in FOREX market which associates two types of risks: 1. Loans(ECB) 2. Investments

More information

Frequently Asked Questions on. the Securities and Futures (OTC Derivative Transactions Reporting and Record Keeping Obligations) Rules.

Frequently Asked Questions on. the Securities and Futures (OTC Derivative Transactions Reporting and Record Keeping Obligations) Rules. Frequently Asked Questions on the Securities and Futures (OTC Derivative Transactions Reporting and Record Keeping Obligations) Rules 6 October 2017 These FAQs elaborate on how the Securities and Futures

More information

Derivatives Use Policy. Updated and Approved by the Board of Trustees November 13, 2014

Derivatives Use Policy. Updated and Approved by the Board of Trustees November 13, 2014 Derivatives Use Policy Updated and Approved by the Board of Trustees November 13, 2014 Originated July 22, 2010 Table of Contents 1. STATEMENT OF PURPOSE... 1 2. SUBORDINATE POLICIES... 1 3. AUTHORIZATIONS...

More information

IFRS IN PRACTICE IFRS 9 Financial Instruments

IFRS IN PRACTICE IFRS 9 Financial Instruments IFRS IN PRACTICE 2018 IFRS 9 Financial Instruments 2 IFRS IN PRACTICE 2018 IFRS 9 FINANCIAL INSTRUMENTS IFRS IN PRACTICE 2018 IFRS 9 FINANCIAL INSTRUMENTS 3 TABLE OF CONTENTS 1. Introduction 5 2. Definitions

More information

GUIDELINES / CLARIFICATIONS FOR VALUATION OF INVESTMENTS

GUIDELINES / CLARIFICATIONS FOR VALUATION OF INVESTMENTS 1 ANNEXURE GUIDELINES / CLARIFICATIONS FOR VALUATION OF INVESTMENTS The market participants should ensure that the valuation of their investment portfolio is in accordance with the directions / guidelines

More information

PPFAS Mutual Fund. Valuation Policy. Investment Valuation for Securities and Other assets

PPFAS Mutual Fund. Valuation Policy. Investment Valuation for Securities and Other assets PPFAS Mutual Fund. Investment Valuation for Securities and Other assets SEBI vide Gazette Notification no. LAD-NRO/GN/2011-12/38/4290, dated February 21, 2012 amended Regulation 25, 47 and the Eighth Schedule

More information

Product Disclosure Statement Structured Foreign Exchange Option Products 1 April 2019

Product Disclosure Statement Structured Foreign Exchange Option Products 1 April 2019 Product Disclosure Statement Structured Foreign Exchange Option Products 1 April 2019 TABLE OF CONTENTS 1. INTRODUCTION... 1 1. INTRODUCTION... 3 2 ABOUT THIS PDS... 3 2.1 Purpose and Contents of this

More information

Guidelines on Credit Default Swaps (CDS) for Corporate Bonds

Guidelines on Credit Default Swaps (CDS) for Corporate Bonds IDMD.PCD.No. 5053 /14.03.04/20010-111 May 23, 2011 All Market Participants Dear Sir Guidelines on Credit Default Swaps (CDS) for Corporate Bonds As indicated in paragraph 113 of the Second Quarter Review

More information

PAPER 2 : STRATEGIC FINANCIAL MANAGEMENT. Answers all the Questions

PAPER 2 : STRATEGIC FINANCIAL MANAGEMENT. Answers all the Questions Question 1 (a) (b) PAPER : STRATEGIC FINANCIAL MANAGEMENT Answers all the Questions Following information is available for X Company s shares and Call option: Current share price Option exercise price

More information

The Measurement Methodologies

The Measurement Methodologies CHAPTER CA-7: Operational Risk CA-7.1 CA-7.1.1 CA-7.1.2 CA-7.1.3 The Measurement Methodologies The framework outlined below presents two methods for calculating operational risk capital charges in a continuum

More information

Harmonisation of critical OTC derivatives data elements (other than UTI and UPI) third batch consultative report

Harmonisation of critical OTC derivatives data elements (other than UTI and UPI) third batch consultative report Harmonisation of critical OTC derivatives data elements (other than UTI and UPI) third batch consultative report Respondent name: Contact person: Contact details: TransAlta Corporation Daryck Riddell (Manager,

More information

BOND RISK DISCLOSURE NOTICE

BOND RISK DISCLOSURE NOTICE 85 Fleet Street, 4th Floor, London EC4Y 1AE, United Kingdom Phone +44 0 207 583 3257 Fax +44 0 207 822 0779 BOND RISK DISCLOSURE NOTICE This Notice is intended solely to inform you about the risks associated

More information

FNCE4830 Investment Banking Seminar

FNCE4830 Investment Banking Seminar FNCE4830 Investment Banking Seminar Introduction on Derivatives What is a Derivative? A derivative is an instrument whose value depends on, or is derived from, the value of another asset. Examples: Futures

More information

Derivatives Covering the Risk

Derivatives Covering the Risk 2008 ANNUAL MEETING AND EDUCATION CONFERENCE American College of Investment Counsel New York, NY Derivatives Covering the Risk 2:45 p.m. - 4:00 p.m. October 23, 2008 MODERATOR: James M. Cain Sutherland

More information

Forwards and Futures

Forwards and Futures Options, Futures and Structured Products Jos van Bommel Aalto Period 5 2017 Class 7b Course summary Forwards and Futures Forward contracts, and forward prices, quoted OTC. Futures: a standardized forward

More information

Citibank N.A., London Branch CitiFX SM G10 Beta Indices Index Methodology 10 December Index Methodology. CitiFX SM Investment Strategies

Citibank N.A., London Branch CitiFX SM G10 Beta Indices Index Methodology 10 December Index Methodology. CitiFX SM Investment Strategies CitiFX SM G10 Beta Indices Index Methodology CitiFX SM G10 Beta Indices Index Methodology CitiFX SM Investment Strategies 1 Table of Contents Citibank N.A., London Branch CitiFX SM G10 Beta Indices Index

More information

HSBC Bank Plc Global Markets MiFID II Ex-ante Costs and Charges Disclosures

HSBC Bank Plc Global Markets MiFID II Ex-ante Costs and Charges Disclosures HSBC Bank Plc Global Markets MiFID II Ex-ante Costs and Charges Disclosures PUBLIC Introduction Throughout this document references to we, our and us are references to HSBC Bank plc. References to you

More information

IFRS update for the EU

IFRS update for the EU IFRS update for the EU June 2017 www.moorestephens.co.uk PRECISE. PROVEN. PERFORMANCE. Contents 1 Introduction 3 2 Standards 4 2.1 IAS 1 Presentation of Financial Statements 4 2.2 IAS 16 Property, Plant

More information

DERIVATIVES DIRECTIVES. 21 April 2015

DERIVATIVES DIRECTIVES. 21 April 2015 DERIVATIVES DIRECTIVES 21 April 2015 JSE Limited Reg No: 2005/022939/06 Member of the World Federation of Exchanges JSE Limited I 2014 Derivatives Directives 1 August 2005 as amended by Date Notice No.

More information

PENNSYLVANIA TURNPIKE COMMISSION POLICY AND PROCEDURE

PENNSYLVANIA TURNPIKE COMMISSION POLICY AND PROCEDURE PTC 502005539 (12/05) Policy Subject: 7.7 - Interest Rate Swap Management Policy PENNSYLVANIA TURNPIKE COMMISSION POLICY AND PROCEDURE This is a statement of official Pennsylvania Turnpike Commission Policy

More information

CHARACTERISTICS OF FINANCIAL INSTRUMENTS AND A DESCRIPTION OF

CHARACTERISTICS OF FINANCIAL INSTRUMENTS AND A DESCRIPTION OF CHARACTERISTICS OF FINANCIAL INSTRUMENTS AND A DESCRIPTION OF RISK I. INTRODUCTION The purpose of this document is to provide customers with the essence of financial instruments offered on unregulated

More information

RE 9: Second Level Regulatory Examination: Securities And Instruments

RE 9: Second Level Regulatory Examination: Securities And Instruments COMPLIANCE MONITORING SYSTEMS CC RE 9: Second Level Regulatory Examination: Securities And Instruments Alan Holton December 2009 All representatives performing financial services in relation to category

More information

DESCRIPTION OF FINANCIAL INSTRUMENTS AND RELATED RISKS

DESCRIPTION OF FINANCIAL INSTRUMENTS AND RELATED RISKS DESCRIPTION OF FINANCIAL INSTRUMENTS AND RELATED RISKS Pursuant to the requirements of legal acts and in order to enable the Client to make a reasoned investment decision, the Bank hereby presents a generalized

More information

Equity Swap Definition and Valuation

Equity Swap Definition and Valuation Definition and Valuation John Smith FinPricing Equity Swap Introduction The Use of Equity Swap Valuation Practical Guide A Real World Example Summary Equity Swap Introduction An equity swap is an OTC contract

More information

BOM/BSD 24/ July 2009 BANK OF MAURITIUS. Guideline on Measurement and Management of Market Risk

BOM/BSD 24/ July 2009 BANK OF MAURITIUS. Guideline on Measurement and Management of Market Risk BOM/BSD 24/ July 2009 BANK OF MAURITIUS Guideline on Measurement and Management of Market Risk July 2009 TABLE OF CONTENTS Page INTRODUCTION...2 PURPOSE...2 AUTHORITY...2 SCOPE OF APPLICATION...2 STRUCTURE

More information

SUPPLEMENT. to the publication. Accounting for Financial Instruments - Standards, Interpretations, and Implementation Guidance

SUPPLEMENT. to the publication. Accounting for Financial Instruments - Standards, Interpretations, and Implementation Guidance NOVEMBER 2001 SUPPLEMENT to the publication Accounting for Financial Instruments - Standards, Interpretations, and Implementation Guidance originally issued in July 2001 This document includes the final

More information

GN(A) 33 (Issued 2015) Guidance Note on Accounting for Derivative Contracts

GN(A) 33 (Issued 2015) Guidance Note on Accounting for Derivative Contracts Introduction GN(A) 33 (Issued 2015) Guidance Note on Accounting for Derivative Contracts 1. In the year 2007, the Institute of Chartered Accountants of India (ICAI), issued Accounting Standard (AS) 30,

More information

THE ADVISORS INNER CIRCLE FUND II. Westfield Capital Dividend Growth Fund Westfield Capital Large Cap Growth Fund (the Funds )

THE ADVISORS INNER CIRCLE FUND II. Westfield Capital Dividend Growth Fund Westfield Capital Large Cap Growth Fund (the Funds ) THE ADVISORS INNER CIRCLE FUND II Westfield Capital Dividend Growth Fund Westfield Capital Large Cap Growth Fund (the Funds ) Supplement dated May 25, 2016 to the Statement of Additional Information dated

More information

CLIENT CATEGORIZATION POLICY

CLIENT CATEGORIZATION POLICY CLIENT CATEGORIZATION POLICY This is not a marketing material, but an informative policy for the categorisation of clients and their rights in compliance with Markets in Financial Instruments Directive

More information

INTEREST RATES AND FX MODELS

INTEREST RATES AND FX MODELS INTEREST RATES AND FX MODELS 4. Convexity Andrew Lesniewski Courant Institute of Mathematics New York University New York February 24, 2011 2 Interest Rates & FX Models Contents 1 Convexity corrections

More information

Chapter 8. Development of Credit Derivative market in India

Chapter 8. Development of Credit Derivative market in India Chapter 8 Development of Credit Derivative market in India The synthesizing of custom financial contracts and securities is for financial services what the assembly-line production process is for manufacturing

More information

Hedging. Key Steps to the Hedging Process

Hedging. Key Steps to the Hedging Process 2016 Hedging What is hedging? Why would a business need it? How would it help mitigate risks? How would one be able to get started with it? How can MFX help? Everything it entails can be summarized in

More information

Derivative Management Policy

Derivative Management Policy Derivative Management Policy Updated August 31, 2017 CONTENTS I. INTRODUCTION... 3 II. POLICY OBJECTIVES AND PHILOSOPHY... 3 III. MANAGEMENT AND OVERSIGHT... 3 RESPONSIBILITIES... 4 IV. GUIDELINES... 4

More information

TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS. INTEREST RATE SWAP POLICY As presented to the Board on April 26, 2018

TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS. INTEREST RATE SWAP POLICY As presented to the Board on April 26, 2018 TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS INTEREST RATE SWAP POLICY As presented to the Board on April 26, 2018 2018 April 26, 2018 Version 04.26.2018 (Presented to TDHCA Board 04.26.2018) Page

More information

Dodd-Frank Act OTC Derivatives Reform

Dodd-Frank Act OTC Derivatives Reform Dodd-Frank Act OTC Derivatives Reform Supporting Materials for Panel Discussion OTC Derivatives Reforms at MFA s Regulatory Compliance Conference Compliance 2011, November 30, The Princeton Club, New York

More information

Best Execution Policy

Best Execution Policy Best Execution Policy 1. General information about this policy TOBAM manages portfolios of investments on a discretionary basis for investment funds and external segregated client s portfolio (together,

More information

RBI/ /366 IDMD.PCD.No.10 / / January 7, Revised Guidelines on Credit Default Swaps (CDS) for Corporate Bonds

RBI/ /366 IDMD.PCD.No.10 / / January 7, Revised Guidelines on Credit Default Swaps (CDS) for Corporate Bonds RBI/2012-13/366 IDMD.PCD.No.10 /14.03.04/2012-13 January 7, 2013 All Market Participants Dear Sir/Madam, Revised Guidelines on Credit Default Swaps (CDS) for Corporate Bonds A reference is invited to the

More information

Fuel Hedging. Management. Strategien for Airlines, Shippers, VISHNU N. GAJJALA

Fuel Hedging. Management. Strategien for Airlines, Shippers, VISHNU N. GAJJALA Fuel Hedging andrisk Management Strategien for Airlines, Shippers, and Other Consumers S. MOHAMED DAFIR VISHNU N. GAJJALA WlLEY Contents Preface Acknovuledgments Almut the Aiithors xiii xix xxi CHAPTER

More information

OECD/IOPS GOOD PRACTICES ON PENSION FUNDS USE OF ALTERNATIVE INVESTMENTS AND DERIVATIVES

OECD/IOPS GOOD PRACTICES ON PENSION FUNDS USE OF ALTERNATIVE INVESTMENTS AND DERIVATIVES OECD/IOPS GOOD PRACTICES ON PENSION FUNDS USE OF ALTERNATIVE INVESTMENTS AND DERIVATIVES December 2011 OECD/IOPS GOOD PRACTICES ON PENSION FUNDS USE OF ALTERNATIVE INVESTMENTS AND DERIVATIVES Introduction

More information

The Society of Actuaries in Ireland. Actuarial Standard of Practice INS-1, Actuarial Function Report

The Society of Actuaries in Ireland. Actuarial Standard of Practice INS-1, Actuarial Function Report The Society of Actuaries in Ireland Actuarial Standard of Practice INS-1, Actuarial Function Report Classification Mandatory MEMBERS ARE REMINDED THAT THEY MUST ALWAYS COMPLY WITH THE CODE OF PROFESSIONAL

More information

Pricing Options with Mathematical Models

Pricing Options with Mathematical Models Pricing Options with Mathematical Models 1. OVERVIEW Some of the content of these slides is based on material from the book Introduction to the Economics and Mathematics of Financial Markets by Jaksa Cvitanic

More information

Order Execution Policy for clients of the SEB

Order Execution Policy for clients of the SEB Order Execution Policy for clients of the SEB Effective from 03.01.2018 Table of Contents 1. Introduction 3 2. Scope 4 2.1 Clients covered 4 2.2 Geographies covered 4 2.3 Financial Instruments covered

More information

RBS Collective Investment Funds Limited

RBS Collective Investment Funds Limited Derivatives Risk Management Policy RBS Collective Investment Funds Limited Derivatives Risk Management Policy Part 3 Funds Managed by RBS plc Policy Statement This policy document describes the use of

More information

Derivatives Questions Question 1 Explain carefully the difference between hedging, speculation, and arbitrage.

Derivatives Questions Question 1 Explain carefully the difference between hedging, speculation, and arbitrage. Derivatives Questions Question 1 Explain carefully the difference between hedging, speculation, and arbitrage. Question 2 What is the difference between entering into a long forward contract when the forward

More information

Participatory Notes. What are participatory notes?

Participatory Notes. What are participatory notes? Participatory Notes Or Offshore Derivative Instruments What are participatory notes? Participatory notes are Offshore, OTC Derivatives on Indian securities sold by registered foreign investors (FIIs) to

More information

Guidelines for Asset Liability Management (ALM) System in Financial Institutions (FIs)

Guidelines for Asset Liability Management (ALM) System in Financial Institutions (FIs) Guidelines for Asset Liability Management (ALM) System in Financial Institutions (FIs) In the normal course, FIs are exposed to credit and market risks in view of the asset-liability transformation. With

More information

Basel Committee on Banking Supervision

Basel Committee on Banking Supervision Basel Committee on Banking Supervision Frequently asked questions on the Basel III standardised approach for measuring counterparty credit risk exposures March 2018 (update of FAQs published in August

More information

PROFESSIONAL PROGRAMME

PROFESSIONAL PROGRAMME 1 PROFESSIONAL PROGRAMME SUPPLEMENT FOR STRATEGIC MANAGEMENT, ALLIANCES AND INTERNATIONAL TRADE MODULE 3 - PAPER 5 (Relevant for Students Appearing in December, 2015 Examination) Disclaimer- This document

More information

Re: RIN 3235-AK87 - Notice of Proposed Rulemaking: Process for Review of Security-Based Swaps for Mandatory Clearing (75 Fed. Reg.

Re: RIN 3235-AK87 - Notice of Proposed Rulemaking: Process for Review of Security-Based Swaps for Mandatory Clearing (75 Fed. Reg. ISDA International Swaps and Derivatives Association, Inc. 360 Madison Avenue, 16th Floor New York, NY 10017 United States of America Telephone: 1 (212) 901-6000 Facsimile: 1 (212) 901-6001 email: isda@isda.org

More information

ORDER EXECUTION POLICY FOR PROFESSIONAL CLIENTS Applicable to ENGIE GLOBAL MARKETS head office and branches in the European Economic Area

ORDER EXECUTION POLICY FOR PROFESSIONAL CLIENTS Applicable to ENGIE GLOBAL MARKETS head office and branches in the European Economic Area ORDER EXECUTION POLICY FOR PROFESSIONAL CLIENTS Applicable to ENGIE GLOBAL MARKETS head office and branches in the European Economic Area Version V.2.0 Last update 15 December 2017 Contents I. PURPOSE

More information

LEVERAGE AND MARGIN POLICY Maxiflex Ltd

LEVERAGE AND MARGIN POLICY Maxiflex Ltd LEVERAGE AND MARGIN POLICY Maxiflex Ltd Proprietary Restriction: This controlled document is property of Maxiflex Ltd, any disclosure, reproduction or transmission to unauthorized parties without the prior

More information

STRATEGIC FINANCIAL MANAGEMENT FOREX & OTC Derivatives Summary By CA. Gaurav Jain

STRATEGIC FINANCIAL MANAGEMENT FOREX & OTC Derivatives Summary By CA. Gaurav Jain 1 SFM STRATEGIC FINANCIAL MANAGEMENT FOREX & OTC Derivatives Summary By CA. Gaurav Jain 100% Conceptual Coverage With Live Trading Session Complete Coverage of Study Material, Practice Manual & Previous

More information

Guardians of New Zealand Superannuation

Guardians of New Zealand Superannuation Guardians of New Zealand Superannuation STATEMENT OF INVESTMENT POLICIES, STANDARDS AND PROCEDURES 1 JULY 2011 Table of Contents 1 Introduction... 3 2 Asset Classes and Selection Criteria... 7 3 Benchmarks...

More information

Interest Rate Swaps. Revised

Interest Rate Swaps. Revised Interest Rate Swaps Interest rate swaps allow fixed coupon bonds to be transformed into floating coupon bonds or vice versa. This can be useful for the purpose of hedging, speculating, or achieving lower

More information

SCB FM as a manufacturer

SCB FM as a manufacturer Standard Chartered Bank Financial Markets Division Target Market and Distribution Strategy for financial instruments and investment services under MiFID II (Wholesale Markets) Standard Chartered Bank s

More information