Considering my audience, maybe not the place to ask.
Any of you guys know about post-trade/pre-settlement in international trade terms (i think)?
I need to understand wtf it is all about, quite quickly, in layman's terms.
Thanks kindly.
Considering my audience, maybe not the place to ask.
Any of you guys know about post-trade/pre-settlement in international trade terms (i think)?
I need to understand wtf it is all about, quite quickly, in layman's terms.
Thanks kindly.
In what respect? Currency hedges?
Cogito cogito ergo cogito sum
yes and fixed income! mainly from investment managers/brokers/dealers side. Need to know what post-trade/pre-settlement means in this context, how it works, why they do it. Just an overview or some good sites to give me a starting place.
There are many sites dealing with this and would probably provide a faster over view than my typing out a long screed.
Key search words would be
Derivatives
Financial Instruments
Currency Hedges
Exchange Rate derivatives
Interest Rate derivatives
Put very simply one can agree a fixed rate deal on any commodity (including currency) but very often such a deal will be subject to currency fluctuations. This can occur after the deal conclusion but before the settlement date (when you have to pay). The settlement date may not be long after the deal but such are the volumes involved and the fluctuations in the market that even a small shift between two currencies can represent a significant gain or loss. Fixed rate takes this on the chin but a hedge seeks to mitigate these fluctautions. Hedging is primarily a Risk management tool although some see it as a way of playing the market. Business Treasury functions sometimes undertake currency hedges as a means of gainfully employing surplus cash - Currency hedges are typically short term deals so do not tie up business funds for long.
PS I hope you realise this has shredded what little street cred I had left.
Cogito cogito ergo cogito sum
accountancy talk, devil's work
You do not need to see my I.D.
kill biggles and eat his brains, by doing so you'd obviously inherit his knowledge.
And also you can now count.
You do not need to see my I.D.
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