Market Participants Should, Where Activity Justifies It, Aim to Reduce

question 18

Multiple Choice

Market participants should, where activity justifies it, aim to reduce settlement and related credit risk on currency transactions by:

• A) Establishing realistic daylight limits for counter
• B) Monitoring all payments to counterparties who are
• C) Establishing legally binding bilateral netting ag
• D) Seeking pre-payment.

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Definitions:

Arbitrator

A neutral third party selected to resolve a dispute between two or more parties in a binding manner outside of court.

Labour Disputes

Conflicts between employers and employees, typically over matters such as wages, working conditions, and union representation.

Mediator

A third party in an employment dispute who meets with one party and then the other to suggest compromise solutions or to recommend concessions from each side that will lead to an agreement.

Collective Agreements

Legal contracts between employers and a group of employees, often represented by a union, that outline the terms of employment.