Commodity risk and Participant in an FTS: Difference between pages

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''Risk management''.
A party which participates in a transfer system.  


When commodities are part of a company’s core business or processes there can be exposures arising from either or both of:
This generic term refers to an institution which is identified by a transfer system (for example by a bank identification number) and is allowed to send payment orders directly to the system or which is directly bound by the rules governing that transfer system.


1. Price fluctuations (commodity price risk); and


2. Lack of availability of the commodity.
== See also ==
 
* [[Direct participant in an IFTS]]
Both of these risks are aspects of Commodity risk.
* [[Indirect participant in an IFTS]]
 
Commodity price risk - as defined above - may also arise from intentionally creating speculative positions in the physical commodity or (more commonly) related derivative instruments.


== See also ==
[[Category:Financial_products_and_markets]]
* [[Commodity ]]
* [[Derivative instrument]]
* [[Risk]]

Latest revision as of 21:15, 1 July 2022

A party which participates in a transfer system.

This generic term refers to an institution which is identified by a transfer system (for example by a bank identification number) and is allowed to send payment orders directly to the system or which is directly bound by the rules governing that transfer system.


See also

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