EUR

AUD

Depends on whether the price is being quoted in Europe or Australia

Depends on whether the price is being quoted interbank or to a customer

At maturity

Annually

Semi-annually

Quarterly

same way”

me too”

“par”, or “parity”

“join at”, or “support at”

If there is more than one FX trade with a single counterparty to settle in the identical currencies, then both sides should bilaterally agree to settle the trades outside of CLS Bank on a net basis.

If there is only one FX trade with a single counterparty to settle in the identical currencies, then either side can unilaterally decide to settle the trade outside of CLS Bank on a net basis.

If there is more than one FX trade with a single counterparty to settle in the identical currencies, then both sides should bilaterally agree to settle the trade outside CLS Bank on a gross basis.

If there is more than one FX trade with a single counterparty to settle in the identical currencies, then either side can unilaterally instruct the CLS Bank to settle the trades.

The face value of the CD

More than the face value

Less than the face value

Too little information to decide

When setting the rates for an FX swap to extend the maturity, the spot rate should be fixed immediately within the current spread

Where the use of non-current rates may be necessary, they should only be entered into with the prior explicit permission of the quoting party’s senior management

Dealing and rollovers at non-current rates are relatively common market practice and therefore should not be treated differently from any other transaction

Dealing and rollovers at non-current rates are forbidden as they can help perpetrate fraud and tax evasion

coordinated limit management of a financial institution’s credit portfolio

running a matched trading book

monitoring credit quality of assets and establishing a early warning system

managing the financial risk of the bank by protecting it from the adverse effects of changing interest rates

0.60%

0.949%

1.074%

0.933%

The level of interest rates in the base currency

The level of interest rates in the quoted currency

The interest rates in the two currencies

Your expectations of the future spot rate

the fixing spot rate

the daily high

the days’ average rate

the average rate over the NDF period

the 6-month bucket

the 2.5-year bucket

the 5-year bucket

It should be weighted and apportioned in each of the time buckets in accord with the periodic coupon payments.

The risk of failure of a payments or settlement system

The risk that only one side of an exchange of currencies will be made

The risk of payments ‘gridlock’ in a real-time gross settlement system

The risk that default by a counterparty before the value date means you have to replace the defaulted deal at a worse rate

Tier 3 capital requirements held against liquidity risk.

The nature and amount of high quality liquid assets a bank holds.

Central bank internal management processes regarding open market operations.

The transparent disclosure of illiquid on-balance sheet liabilities.

It is good practice to collect and disclose incidents and near-misses for the future benefit of the professional community.

It is good practice to collect and analyze incidents and near-misses so as to set up preventive action plans for the future.

A report describing operational risks should be made at the request of the front office.

A report describing operational risks should be made at least once a year and provided to the front office.

350%

750%

1250%

1500%