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Fair value hedge

A fair value hedge is an investment position taken by a company or an investor aiming to protect the fair value of a specific asset, liability or unrecognised company commitment from risks that can affect their profit and loss accounts. This is one of the three main hedge types allowed for hedge accounting. The IFRS […]

Federal Reserve Wired Network (FEDWIRE)

Fedwire is the abbreviation for the Federal Reserve Wire Network, a real-time gross settlement (RTGS) funds transfer system that settles funds electronically between any of the United States banks registered in the Federal Reserve System, totalling approximately 10,000 banks. The Fedwire works together with the Clearing House Interbank Payment Systems (CHIPS), which is operated by […]

Financial Accounting Standards Board (FASB)

The Financial Accounting Standards Board is an independent, non-profit organisation consisting of a government body of 7 members, whose main purpose is to issue and communicate the generally accepted accounting principles (GAAP) in the United States. The standards established by the FASB prescribe the financial accounting guidelines for public and private companies in the US, […]

Financial Conduct Authority (FCA)

The Financial Conduct Authority (FCA) is a United Kingdom regulatory body that focuses on the regulation of financial services firms (retail and wholesale). It is funded by membership fees it charges and is completely independent of the United Kingdom government. The FCA has a crucial role in maintaining the integrity of financial markets in the […]

Financial statement translation

Financial statement translation is a corporate accounting process by which a parent company converts a foreign entity’s financial statements into its reporting currency to prepare consolidated financial statements. Accounting standards require that multinational companies’ financial reports include the results of their foreign entities. Thus, in every reporting period, the parent company must translate its foreign […]

Fintech

Fintech – a contraction of “finance” and “technology” – refers to financial service firms whose product or service is built on technology, often resulting in highly innovative, pioneering services The fintech space has become increasingly prominent in recent years, and has grown exponentially. For example, global investment in fintech start-ups quadrupled between 2013 to the […]

Fintech companies

Fintech companies provide financial services using technological innovation. The rise of Fintech was made possible by the convergence of technological development and changes in financial regulation. Fintech companies essentially offer alternatives to traditional banking in services such as equity funding, lending, payments and foreign currency trading. What sets these new companies apart is their use of […]

Fixed exchange rate

A fixed exchange rate is a system in which one currency is pegged to another (usually stronger) currency. Most of these currencies are pegged to the euro, the US dollar or the pound sterling. The monetary authorities’ aim, in these cases, is to maintain their currency’s value steady and avoid exchange rate fluctuations. There are […]

Flexible forward

A flexible forward is a type of forward contract used to hedge against the volatility generated by foreign exchange. More info FX Forwards Dynamic Hedging Characteristics of the flexible forward Flexible forwards differ from a standard currency forward contract in that the purchaser can settle at any time up to the maturity date of the […]

Flexible Hedging Strategy

A flexible hedging strategy is a method designed to allow companies to minimise the impact of adverse currency fluctuations on an ongoing basis. By contrast, more traditional hedging practices require accurate forecasts of the company’s FX needs to cover exposure in advance. Flexible approaches allow businesses to manage exposure when it emerges – an important […]