Archive: Page 4
Counterparty risk management needs a closer relook
Counterparty risk is the risk that a counterparty in a transaction will default prior to the expiration of the contract and will be unable to make agreed contractual payments
Experience has shown, normally banking and financial crises have their...
Pay and Bonus – Investment banking and evolving regulations
These times are very difficult times for our investment banks.
The markets are not moving and most of the time they are hostile. There is no growth in major economies and they make these dull markets. Making money in such markets is very difficult.
The...
Foreign Exchange Exposures
Foreign Exchange exposure is a measure of the potential for a firm’s profitability, net cash flow and market value to change because of a change in exchange rates. An important task of the financial manager is to measure foreign exchange exposure...
Foreign Exchange Risk Management
The peculiarities of foreign exchange markets are
– An Over The Counter market
– Only market open 24 hours, seven days a week, 365 days a year
– No single location; no barriers
– ...
FX Forward Contracts
Forward Contract is a mechanism through which the rate is fixed in advance for purchase or sale of foreign currency at a future date. In such an arrangement, the risk of loss which might accrue on account of adverse movement in the rate of exchange...
Foreign Exchange Dealing Operations
If you buy a Binny Silk Saree for your wife (or girl friend!) at T.Nagar Chennai Nalli Silks, you will naturally want to pay for it with Indian Rupees and the Nalli Silks will want to be paid in Rupees because he pays all his bills with Rupees.
Likewise,...
Basic concepts in Foreign Exchange
Meaning:
The term foreign exchange is popularly referred to as the currencies of other countries. To an Indian, US Dollar is a foreign currency just as Indian Rupee to an American. Mr X, an Indian, receives a remittance of (say) USD 1000 from...
Gold Accumulation Plans in India
I should consider myself as very fortunate – I had the rare privilege to get associated ‘first’ with bullion banking in India when the official Gold policy was relaxed in the late 1990s and also to get associated with the first...
DFA and Hedge fund regulation
Title IV of the Dodd-Frank Wall Street Reform and Consumer Protection Act makes numerous changes to the registration and reporting and recordkeeping requirements of the Investment Advisers Act of 1940. Among these is the requirement that advisers...
DFA and Framework for payment, clearing and settlement regulation,
Title VIII of the Dodd-Frank Act, titled the “Payment, Clearing, and Settlement Supervision Act of 2010,” was enacted to mitigate systemic risk in the financial system and to promote financial stability, in part, through enhanced supervision...
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