Non-transferable risk and SONIA: Difference between pages

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Non-transferable risks are risks which must be borne by an organisation.  
Sterling Overnight Index Average.


Tracks actual average market sterling funding rates each day for settlement that day where repayment is made on the following business day.


Non-transferable risks might be avoided or accepted and retained or reduced as appropriate.  
It is published by the Wholesale Markets Brokers' Association (WMBA) in London at 5pm each day.  


In the case of non-transferable business risks (which by definition are not avoided) it is important that the organisation has a distinctive competence in the relevant areas.  
It is defined and calculated as the weighted average rate (to four decimal places) of all unsecured sterling overnight cash transactions brokered in London by WMBA member firms between midnight and 4.15pm London time with all counterparties in a minimum deal size of £25 million.


For example, a pharmaceutical company's non-transferable risks would include the risk that failure to gain approval for use of a new drug means that the research and development costs have been wasted.


== See also ==
* [[Euro Overnight Index Average ]]
* [[EURONIA]]
* [[Over night index average rate]]
* [[Overnight indexed swap]]
* [[Sterling overnight index average]]
* [[Wholesale Markets Brokers' Association]]




== See also ==
==External links==
* [[Committed risk]]
* [[Pharmaceuticals]]
* [[Risk management]]
* [[Transferable risk]]
* [[Uncommitted risk]]


[[Category:The_business_context]]
[http://www.wmba.org.uk/pages/index.cfm?page_id=31 Wholesale Markets Brokers' Association (WMBA)]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]

Revision as of 13:50, 20 August 2013

Sterling Overnight Index Average.

Tracks actual average market sterling funding rates each day for settlement that day where repayment is made on the following business day.

It is published by the Wholesale Markets Brokers' Association (WMBA) in London at 5pm each day.

It is defined and calculated as the weighted average rate (to four decimal places) of all unsecured sterling overnight cash transactions brokered in London by WMBA member firms between midnight and 4.15pm London time with all counterparties in a minimum deal size of £25 million.


See also


External links

Wholesale Markets Brokers' Association (WMBA)

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