Maintenance Act, 1998
R 385
Banks Act, 1990 (Act No. 94 of 1990)RegulationsRegulations relating to Banks' Financial Instrument TradingChapter 5 : Counterparty Risk19. Explanatory terms for purposes of calculation of counterparty risk |
| (1) | "Potential loss positions" means that potential profits may not be offset against potential losses. |
| (2) | "Difference" means the differential between purchase price and current market price. |
| (3) | "Market value" means the market value of the security or contract. |
| (4) | "Notional value" means the notional or actual value of the security underlying the contract. |
| (5) | "Free delivery" means— |
| (a) | the delivery of securities or physical commodities that takes place before the seller or agency broker receives payment; or |
| (b) | payment made in settlement of a credit balance arising from a sale on behalf of a counterparty or a purchase from a counterparty in respect of which the securities are undelivered. |
