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| Front loading as applied to derivatives is a term that describes the obligation to clear centrally an [[OTC]] [[derivative instrument]] or contract that is applied retrospectively.
| | One billion (1,000,000,000). |
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| It arises because there is a gap between the time that a [[CCP]] is authorised under [[EMIR]] and [[ESMA]]’s decision to mandate [[central clearing]] of certain derivatives. During the early implementation stages of EMIR and the clearing obligation it may not be known at the time of executing a derivative trade whether it ultimately will be subject to frontloading or not.
| | Sometimes known colloquially as a "yard". |
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| It is not known at the outset whether to price the transaction on the assumption that it will, or will not, be subject to central clearing during the life of the transaction.
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| | | == See also == |
| ==See also== | | * [[Billion]] |
| *[[Central clearing]] | |
| *[[Central counterparty]] (CCP)
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| *[[Derivative instrument]]
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| *[[EMIR]]
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| *[[ESMA]]
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| * [[Over the counter]] (OTC)
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| ==External link==
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| [http://regtechfs.com/clearing-and-present-danger-nasdaq-omxs-emir-ccp-authorisation/ Clear(ing) and present danger] ''www.regtechfs.com''
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| [[Category:Financial_products_and_markets]]
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Revision as of 09:05, 22 August 2013
One billion (1,000,000,000).
Sometimes known colloquially as a "yard".
See also
