Interest rate parity and International Organization of Securities Commissions: Difference between pages

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(IRP).
(IOSCO).  


This theory describes the expected relationship between spot rate and forward foreign exchange rates, and the interest rates in the related currency pair.
An international organisation that brings together the regulators of the world’s securities and futures markets.  


Under efficient market conditions the interest rate parity theory predicts that the forward FX rate (available in the market today) should be equal to the spot FX rate, adjusted for the difference in interest rates between the currency pair over the relevant period.
IOSCO develops, implements and promotes adherence to internationally recognised standards for securities regulation.
 
 
IRP holds very strongly for actively traded currency pairs; less so for currencies which are not so actively traded.  




== See also ==
== See also ==
* [[Arbitrage]]
* [[CPSS]]
* [[Carry trade]]
* [[Futures]]
* [[Covered interest arbitrage]]
* [[Financial Stability Board]]
* [[Efficient market hypothesis]]
* [[MG]]
* [[Expectations theory]]
* [[PIOB]]
* [[Fisher Effect]]
* [[Foreign exchange]]
* [[Forward foreign exchange rate]]
* [[Forward forward rate]]
* [[Four way equivalence model]]
* [[Interest rate]]
* [[International Fisher Effect]]
* [[No arbitrage conditions]]
* [[Parity]]
* [[Purchasing power parity]]
* [[Spot rate]]


[[Category:Manage_risks]]
[[Category:Compliance_and_audit]]

Revision as of 14:48, 10 December 2017

(IOSCO).

An international organisation that brings together the regulators of the world’s securities and futures markets.

IOSCO develops, implements and promotes adherence to internationally recognised standards for securities regulation.


See also