Convexity and Third party provider: Difference between pages

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imported>Doug Williamson
(Improve calculation.)
 
imported>Doug Williamson
(Created page with "''Payment services - PSD2''. (TPP). Under PSD2, third party providers of payment services include: *Account Information Service Providers (AISPs) and *Payment Initiation Se...")
 
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Convexity measures the curvature of the profile representing the relationship between an [[instrument]]’s or a [[portfolio]]'s yield and its value.
''Payment services - PSD2''.


(TPP).


Convexity is normally calculated as:
Under PSD2, third party providers of payment services include:


Sum(PV  x  t  x  (t + 1) ) / Sum(PV).
*Account Information Service Providers (AISPs) and
*Payment Initiation Service Providers (PISPs).




Where:
Both AISPs and PISPs are regulated under PSD2.


PV = Present Value of individual cash flows.


t = timing of cash flows.
==See also==
 
*[[Free trade agreement]]
 
*[[Free trade area]]
Strictly defined, convexity is the rate of change of [[duration]], and [[modified convexity]] is the rate of change of modified duration, for small changes in yield from the given starting yield.
*[[International trade]]
 
*[[North American Free Trade Agreement]]
 
*[[Payment Services Directive]]
More loosely, the terms ''Convexity'' and ''Modified convexity'' are sometimes used interchangeably. 
*[[PSD2]]
 
*[[Third party provider]]
Obviously this can lead to confusion, so it is important to clarify whether convexity or modified convexity is intended.
*[[Trans-Pacific Partnership]]
 
 
== See also ==
* [[Duration]]
* [[Effective convexity]]
* [[Modified convexity]]
* [[Modified duration]]
 
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]

Revision as of 10:49, 4 June 2018

Payment services - PSD2.

(TPP).

Under PSD2, third party providers of payment services include:

  • Account Information Service Providers (AISPs) and
  • Payment Initiation Service Providers (PISPs).


Both AISPs and PISPs are regulated under PSD2.


See also