Liquidity and Netting centre: Difference between pages

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1.  
An essential part of a multilateral netting system.


An asset's ability to be turned into cash quickly and without significant loss compared with current market value.
The netting centre acts as a counterparty to all of the participants in the multilateral netting system.


In a group of companies, the netting centre is usually operated by the central or regional treasury centre.


2.


In relation to a market, the extent to which large quantities of the asset traded in the market can be bought or sold at any time, with low transaction costs, and without affecting the market price.
The netting centre typically handles all foreign exchange exposures as well as foreign exchange trading.
 
 
3.
 
An entity’s ability to pay its obligations when they fall due, especially in the short term.
 
 
4.
 
An entity's ability to source additional funds to meet its obligations, including in the medium and longer term.
 
 
5.
 
A financial measure designed to quantify an entity's ability to meet its obligations when they fall due.
* For non-financial organisations, simple measures of liquidity include the ''current ratio'' and the ''quick ratio''.
* For banks and other financial institutions, liquidity measures include those which identify how long the bank could survive if wholesale funds were to dry up and retail funding was heavily stressed. This period is known as the ''survival period''.




== See also ==
== See also ==
* [[Authorisation]]
* [[Counterparty]]
* [[Authority limits]]
* [[Multilateral netting]]
* [[Cash and cash equivalents]]
* [[Multilateral net settlement system]]
* [[Cash forecasting]]
* [[Netting]]
* [[Cash pool]]
* [[Payments and payment systems]]
* [[CertICM]]
* [[CRD IV]]
* [[Current ratio]]
* [[Deep market]]
* [[Funding]]
* [[Funds]]
* [[Headroom target]]
* [[Illiquid]]
* [[Insolvency]]
* [[Leverage]]
* [[Liquid]]
* [[Liquidate]]
* [[Liquidation]]
* [[Liquidity buffer]]
* [[Liquidity Coverage Ratio]]
* [[Liquidity preference]]
* [[Liquidity management]]
* [[Liquidity premium]]
* [[Liquidity risk]]
* [[Money management]]
* [[Net Stable Funding Ratio]]
* [[Quick ratio]]
* [[Run]]
* [[Security]]
* [[Solvency]]
* [[Stress]]
* [[Supply chain finance]]
* [[Survival period]]
* [[Yield]]
 
 
=== Other resources ===
* [https://www.treasurers.org/hub/treasurer-magazine/liquidity-first-three-tips-for-treasurer Liquidity first: three tips for treasurers, The Treasurer Web exclusive, 2020]
 
*[[Media:2015_06_June_-_Safety_first.pdf| Safety first, The Treasurer, 2015]]
 
[[Category:Liquidity_management]]

Revision as of 08:16, 24 May 2015

An essential part of a multilateral netting system.

The netting centre acts as a counterparty to all of the participants in the multilateral netting system.

In a group of companies, the netting centre is usually operated by the central or regional treasury centre.


The netting centre typically handles all foreign exchange exposures as well as foreign exchange trading.


See also