NISM Series IV: Currency Derivatives Certification Exam Notes

Page 26 Of 100

Go to:

  • Counterparty Risk: Mitigated by clearing corporation as central counterparty.
  • Price Transparency: Real-time pricing available on exchanges.
  • Basis Risk: Arises from mismatches in hedging instruments.
  • Contract Design: Balances liquidity and risk management needs.
  • Exchange Role: Matches buyers and sellers for efficient trading.

NISM Interest Rate Derivatives

Copyright 2025 - MODELEXAM MODELEXAM®