Trade repository and Catalytic capital: Difference between pages

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An insitition that is notified of and maintains electronic records of transactions.
''Sustainability - investment - loan markets.''


It is a concept developed as part of the (re-)regulation of derivatives in wake of the financial crisis early in the 21st Century in order that the authorities are better able to assess the positions and associated risks of institutions and to the financial system overall.  
Catalytic capital means initial investment - or investor groups - that accept potentially lower risk-adjusted returns, in order to prove a concept and encourage further investment by others.


Implementation is through the Dodd-Frank Act in the United States, the European Market Infrastructure Regulation in the European Union and local legislation in many parts of the world.


Provision of data to repositories is made mandatory for financial insitutions and their business customers and for derivatives entereded into between non-financial businesses (including internal transactions between members in the same group of companies). Partial information is likely to be misleading, of course so gathering of information was conceived as global.
"At its core, catalytic capital aims to unlock impact and draw in additional investment that would not otherwise be possible, resulting in the strengthening of communities and seeding and growing social innovation using multiple tools and approaches.  


Early indications (2013) are that the lack of detailed definition of the required systems and alowing of multiple repositories using their own make it likely that no global information on the position of institutions will ever be made available to any authority. Costly, though.
Its usages... have included the use of subsidies, guarantees, blended finance structures, and concessionary risk-tolerant investment.  


[[Category:Risk_Management]]
The flexibility of this capital and the differing interactions that stakeholders have with it is a key challenge in talking about catalytic capital..."
[[Category:Treasury_Operations_and_Controls]]
 
''(Source - Big Society Capital)''
 
 
== See also ==
* [[Big Society Capital]]
* [[Blended finance]]
* [[Capital]]
* [[Concessionary]]
* [[ESG investment]]
* [[Green Bond Principles]]
* [[Guarantee]]
* [[Investment]]
* [[Investor]]
* [[Proof of concept]]
* [[Return]]
* [[Risk-adjusted return]]
* [[Risk tolerance]]
* [[Social Bond Principles]]
* [[Social impact bond]]
* [[Social inclusion bond]]
* [[Social investment]]
* [[Social loan]]
* [[Social Loan Principles]]
* [[Social project]]
* [[Subsidy]]
* [[Sustainability bond]]
* [[Sustainability Bond Guidelines]]
 
 
==External link==
*[https://bigsocietycapital.com/about-us/ Big Society Capital - about us]
 
[[Category:Financial_products_and_markets]]

Latest revision as of 09:43, 30 November 2023

Sustainability - investment - loan markets.

Catalytic capital means initial investment - or investor groups - that accept potentially lower risk-adjusted returns, in order to prove a concept and encourage further investment by others.


"At its core, catalytic capital aims to unlock impact and draw in additional investment that would not otherwise be possible, resulting in the strengthening of communities and seeding and growing social innovation using multiple tools and approaches.

Its usages... have included the use of subsidies, guarantees, blended finance structures, and concessionary risk-tolerant investment.

The flexibility of this capital and the differing interactions that stakeholders have with it is a key challenge in talking about catalytic capital..."

(Source - Big Society Capital)


See also


External link