Courses

Credit

Credit risk and its effective management
In markets, such as spot FX and OTC FX derivatives where there is no central counterparty, credit risk is a vital consideration in the ongoing existence of the organisation. more »

Establishing counterparty credit
In a trading environment where each party bears the counterparty risk of the other, some form of formalised credit arrangement must be established before trading between two parties can commence. more »

Limits - branch, group and global.
Once a global credit limit has been established, the question of how to allocate that credit internally still has to be resolved. more »

Netting
One way in which credit exposure to counterparties can be reduced is through netting. This can take the form of netting actual cash flows or contractual obligations. more »

The role of the middle and back offices in effective credit risk management
Once credit limits have been established between counterparties and trading is actually underway, much of the responsibility for monitoring and adjusting limits falls on the middle office or credit officer. more »

The EBS Spot environment - the Trading Floor Administrator
In the EBS environment, the responsibility for establishing and maintaining these counterparty credit limits on the system belongs to the Trading Floor Administrator (TFA). more »