Front loading and Pi: Difference between pages

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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.''  


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.


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.




==See also==
== See also ==
*[[Central clearing]]
* [[Credit rating]]
*[[Central counterparty]] (CCP)
* [[mmf]]
*[[Derivative instrument]]
* [[Public information rating]]
*[[EMIR]]
* [[European Securities and Markets Authority]]  (ESMA)
* [[Over the counter]]  (OTC)


 
[[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]]
 
[[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