Internalisation and RFR: Difference between pages

Revision as of 18:33, 1 December 2018

Risk-Free Rate.

The abbreviation 'RFR' usually refers to risk-free benchmark interest rates, such as SONIA.

Also known as near risk-free rates, recognising that such rates are never entirely risk-free.

Theoretically risk free rates of investment return, for example in the Capital asset pricing model, are more often designated by 'Rf' or 'rf'.

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+Risk-Free Rate.
-The practice where customer trades are executed internally within a brokerage or through intermediaries rather than through an exchange.
+The abbreviation 'RFR' usually refers to risk-free benchmark interest rates, such as SONIA.
-The brokerage keeps any money it may make on the spread (the difference between the purchase price and the sale price).
+Also known as ''near'' risk-free rates, recognising that such rates are never entirely risk-free.
-.
+Theoretically risk free rates of ''investment'' return, for example in the Capital asset pricing model, are more often designated by 'Rf' or 'rf'.
-Netting of transactions within a group of businesses, thereby reducing the number and cost of external transactions.
+==See also==
+*[[Capital asset pricing model]]
+*[[RFR WG]]
+*[[Risk-free rate of return]]
+*[[Risk-free rates]]
+*[[SONIA]]
-== See also ==
+[[Category:Corporate_financial_management]]
-* [[Internalisation risk]]
+[[Category:Financial_products_and_markets]]
-* [[Spread]]