Financial Markets Flashcards
……………………………………………….are any electronic system, other than a recognised stock exchange, on which transactions in eligible instruments like securities, money market instruments, foreign exchange instruments, derivatives, etc. are contracted
ETPs (Electronic Trading Platforms)
The robustness and reliability of ………………………………are critical for efficient pricing and valuation of financial instruments
Financial Benchmarks
Which are the Significant benchmark Rates after July 01, 2023
(i) Overnight Mumbai Interbank Outright Rate (MIBOR)
(ii) USD/INR Reference Rate
(iii) Treasury Bill Rates
(iv) Valuation of Government Securities
(v) Valuation of State Development Loans (SDL)
(vi) Modified Mumbai Interbank Forward Outright Rate (MMIFOR)
Note: MIFOR administered by FBIL shall cease to be a ‘significant benchmark’ after June 30, 2023
Who can access uncollateralised segment of Money market i.e call, notice and term money market?
banks and primary dealers, subject to prudential limits
Who can access collateralised segment of Money market i.e triparty repo, market repo and repo in corporate bonds?
by banks, primary dealers, mutual funds, insurance companies and corporates
Persons resident in India are also permitted to hedge their commodity price risk and freight risk in overseas markets except………………….
gold, gems, and precious stones. (Gold Prices can be hedged now in IFSCs)
In the OTC markets, retail users are permitted to buy protection only for the purpose of …………..
Hedging
In the OTC markets, non-retail users are permitted to buy protection only for the purpose of …………..
to buy protection for hedging or otherwise
Non-retail users such as regulated financial entities and FPIs are also permitted to
sell protection
Foreign Portfolio Investors (FPIs) have how many routes to invest in debt? Name them?
Medium Term Framework (MTF) ii. Voluntary Retention Route (VRR) iii. Fully Accessible Route (FAR)
under Medium Term Framework (MTF) route where can FPIs invest?
invest in all government securities, including treasury bills, and corporate bonds within an overall limit, fixed as a percentage of the total outstanding stock of government securities and corporate bonds
under Voluntary Retention Route (VRR) route where can FPIs invest?
It gives a combined investment limit to FPIs through which they can either invest in government or corporate debt and are subject to minimum retention period of three years
LEI is a …………….-digit unique code to identify parties to financial transactions worldwide
20
………………………………….are one of the most important market infrastructure on account of their ability to make the opaque OTC derivative market transparent.
Trade repositories (TR)
