Covered interest arbitrage and DTCC: Difference between pages

Revision as of 16:24, 9 October 2021

US.

Depository Trust & Clearing Corporation (sometimes referred to as the "Depository Trust and Clearing Corporation").

DTCC provides post-trade services such as clearing and settlement services to financial markets, often via subsidiaries.

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-Simultaneously borrowing and depositing in two different currencies and dealing a forward foreign exchange contract between the same currency pair to cover the related foreign exchange exposure.
+''US.''
+Depository Trust & Clearing Corporation (sometimes referred to as the "Depository Trust ''and'' Clearing Corporation").
+DTCC provides post-trade services such as clearing and settlement services to financial markets, often via subsidiaries.
-Covered interest arbitrage activity normally results in the rapid alignment of the forward foreign exchange rate with the related interest rates, as predicted by Interest rate parity theory.
 == See also ==
-* [[Arbitrage]]
-* [[Covered position]]
-* [[Interest rate parity]]
-* [[Uncovered interest arbitrage]]
+*[[Clearing]]
+*[[Depository Trust Company]]
+*[[Fixed Income Clearing Corporation]]
+*[[Settlement]]
+== Other links ==
+[http://www.dtcc.com/ The DTCC's website]
+[[Category:Accounting,_tax_and_regulation]]
+[[Category:The_business_context]]
+[[Category:Identify_and_assess_risks]]
+[[Category:Manage_risks]]