Layering and RFR: Difference between pages

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imported>Doug Williamson
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imported>Doug Williamson
(Recognise that RFRs are not entirely risk-free.)
 
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1.
Risk-Free Rate.


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


The undertaking of a series of financial transactions with the intention of disguising the true source of laundered money.
Also known as ''near'' risk-free rates, recognising that such rates are never entirely risk-free.


This is often the second stage of money laundering.


It would follow initial 'placement' of the illegally obtained money into the legitimate financial system.
Theoretically risk free rates of ''investment'' return, for example in the Capital asset pricing model, are more often designated by 'Rf' or 'rf'.




2.
==See also==
*[[Capital asset pricing model]]
*[[RFR WG]]
*[[Risk-free rate of return]]
*[[Risk-free rates]]
*[[SONIA]]


''Market manipulation.''
[[Category:Corporate_financial_management]]
 
[[Category:Financial_products_and_markets]]
The (illegal) practice of simultaneously entering a large number of orders intended to be cancelled - for example to buy - together with a smaller number of orders intended to be executed - for example to sell.
 
The intention is to artificially influence the market price with the subsequently cancelled orders, and to take advantage of that artificial market price with the executed orders.
 
 
== See also ==
* [[Integration]]
* [[Market abuse]]
* [[Market manipulation]]
* [[Placement]]
* [[Spoofing]]
 
[[Category:The_business_context]]
[[Category:Compliance_and_audit]]

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'.


See also

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