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imported>Doug Williamson |
imported>Doug Williamson |
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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.
| | {{lowercase}}''Credit rating.'' |
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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.
| | 'pi' is an abbreviation for Public Information. |
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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.
| | A suffix added to a credit rating as a health warning to indicate that it is based on public information only. |
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| ==See also== | | == See also == |
| *[[Central clearing]] | | * [[Credit rating]] |
| *[[Central counterparty]] (CCP) | | * [[mmf]] |
| *[[Derivative instrument]] | | * [[Public information rating]] |
| *[[EMIR]]
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| * [[European Securities and Markets Authority]] (ESMA)
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| * [[Over the counter]] (OTC)
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| | | [[Category:Identify_and_assess_risks]] |
| ==External link==
| | [[Category:Risk_frameworks]] |
| [http://regtechfs.com/clearing-and-present-danger-nasdaq-omxs-emir-ccp-authorisation/ Clear(ing) and present danger] ''www.regtechfs.com'' | | [[Category:Treasury_operations_infrastructure]] |
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| [[Category:Financial_products_and_markets]] | |
Revision as of 05:46, 16 April 2019
Credit rating.
'pi' is an abbreviation for Public Information.
A suffix added to a credit rating as a health warning to indicate that it is based on public information only.
See also