Level 2B liquid assets and Layering: Difference between pages

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''Bank regulation - liquidity''
1.


Level 2B liquid assets are those of lower liquidity quality, compared with Level 2A.
''Money laundering.''


The undertaking of a series of financial transactions with the intention of disguising the true source of laundered money.


Level 2B liquid assets are subject to correspondingly greater haircuts of 25% to 50% when included in the computation of total High Quality Liquid Assets (HQLAs), compared with Level 2A.
This is often the second stage of money laundering.
 
It would follow initial 'placement' of the illegally obtained money into the legitimate financial system.
 
 
2.
 
''Market manipulation.''
 
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 ==
== See also ==
* [[Haircut]]
* [[Integration]]
* [[High Quality Liquid Assets]]
* [[Layered hedging]]
* [[Level 1 liquid assets]]
* [[Market abuse]]
* [[Level 2 liquid assets]]
* [[Market manipulation]]
* [[Level 2A liquid assets]]
* [[Placement]]
* [[Liquidity buffer]]
* [[Spoofing]]
 
[[Category:Compliance_and_audit]]
[[Category:The_business_context]]

Latest revision as of 00:17, 28 February 2024

1.

Money laundering.

The undertaking of a series of financial transactions with the intention of disguising the true source of laundered money.

This is often the second stage of money laundering.

It would follow initial 'placement' of the illegally obtained money into the legitimate financial system.


2.

Market manipulation.

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