Meaning Settlement risk
What does Settlement risk mean? Here you find 12 meanings of the word Settlement risk. You can also add a definition of Settlement risk yourself

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Settlement risk


The risk that one party will deliver and the counterparty will not be able to pay and vice versa.
Source: nasdaq.com

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Settlement risk


A general term used to designate the risk that settlement in a transfer system will not take place as expected. This risk may comprise both credit and liquidity risk.
Source: stats.oecd.org

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Settlement risk


When settling a contract, the risk that one party could be in the process of paying the counterparty while the counterparty is declaring bankruptcy.
Source: cfainstitute.org

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Settlement risk


The risk that settlement in a transfer system will not take place as expected, usually owing to a party defaulting on one or more settlement obligations. This risk includes, in particular, operational [..]
Source: ecb.europa.eu

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Settlement risk


The risk that a counterparty does not deliver on time the security or the cash for a trade it has entered into. The establishment of netting systems is an effort to minimize settlement risk.
Source: glossary.reuters.com

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Settlement risk


Settlement, or Herstatt, risk is the risk that a counterparty fails to perform as agreed and does not deliver a security, or its value after the other counterparty has already delivered on the same tr [..]
Source: financial.math.ncsu.edu

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Settlement risk


Settlement risk rises when there is an exchange of value (funds, instruments or commodities) for the same or different value dates or times and receipt is not verified or expected until ING Group has [..]
Source: ing.com

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Settlement risk


This is the risk of loss from failure of a trading counterpar ty to perform as obligated during the settlement process. Most settlement processes for financial transactions have established safeguards to greatly reduce this risk.
Source: bankingglossary.bankingonly.com

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Settlement risk


The risk that the seller of a security or funds delivers its obligation but does not receive payment or that the buyer of a security or funds makes payment but does not receive delivery. In this event, the full principal value of the securities or funds transferred is at risk.
Source: bankingglossary.bankingonly.com

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Settlement risk


Risk associated with the non-settlement of the transaction by the counter party.
Source: halofinancial.com

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Settlement risk


The risk that one party will deliver and the counterparty will not be able to pay and vice versa.
Source: people.duke.edu

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Settlement risk


Settlement risk arises where a bank pays away funds before receiving funds or securities. Whilst settlement risk may arise for only a few hours the absolute size of the risk can be large. To reduce th [..]
Source: barbicanconsulting.co.uk





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