International Capital Market Association and Pre-settlement risk: Difference between pages

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(ICMA).   
Pre-settlement risk is the risk that one party to a contract becomes insolvent before delivering its side of the contract.   


A self-regulatory organisation and trade association for participants in the capital markets.   
For treasurers it is vital that hedging counterparties remain solvent for the duration of the hedging contract – otherwise the hedge evaporates.
A similar risk occurs in commercial contractsCustomers may become insolvent before paying for goods, and supplier insolvency may threaten production schedules.




== See also ==
== See also ==
* [[Capital market]]
* [[Credit risk]]
* [[Climate Transition Finance Handbook]]
* [[Hedging]]
*[[Capital markets union]]  (CMU)
* [[Insolvency]]
* [[Euromarket]]
* [[Global Master Repurchase Agreement]]
* [[Global Sustainable Finance Council]]
* [[Green Bond Principles]]
* [[Green finance]]
* [[Green Loan Principles]]
* [[International capital market]]
* [[Loan Market Association]]
* [[Money market]]
* [[PEPP]]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Compliance_and_audit]]
[[Category:Ethics]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Revision as of 03:44, 19 May 2016

Pre-settlement risk is the risk that one party to a contract becomes insolvent before delivering its side of the contract.

For treasurers it is vital that hedging counterparties remain solvent for the duration of the hedging contract – otherwise the hedge evaporates.

A similar risk occurs in commercial contracts. Customers may become insolvent before paying for goods, and supplier insolvency may threaten production schedules.


See also