NISM Series IV: Currency Derivatives Certification Exam Notes

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  • Exchange Role: Facilitates trades by matching buyers and sellers.
  • Clearing Corporation Role: Acts as a central counterparty to guarantee trades.
  • Novation: Clearing corporation becomes the counterparty to both buyer and seller.
  • Transparency: Exchange-traded derivatives offer higher transparency than OTC.
  • Standardization: Exchange-traded contracts have fixed terms, unlike OTC.

NISM Interest Rate Derivatives

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