Sanctions Screening

Sanctions screening is a centralised service for members of SWIFT (the Society for Worldwide Interbank Financial Telecommunication) to comply efficiently with international sanctions regulations. Should a company directly or unwittingly authorise a transaction that contravenes any legal sanctions, it can face heavy fines and reputational damage. Sanctions screening provides financial institutions with a comprehensive service […]

Segregated bank account

Segregated bank accounts are accounts meant to hold the funds of a customer separated from the funds of a FX or brokerage company in the interests of the customer’s security. Segregated bank accounts are used by brokers or Foreign Exchange service providers to separate client funds in their own client bank account, meaning there is no […]

Sensitivity analysis

The concept of sensitivity analysis in corporate finance refers to a technique used by businesses exposed to currency risk to test the resilience of a company or a business line to a range of variables in different likely scenarios. The main objective of this exercise is to assess the potential impact of variations in elements […]

Set-and-Forget Hedging Strategy

A set-and-forget or hedge-and-forget strategy is a one-off currency hedging plan, unlike more dynamic options that allow the owner to constantly reassess and adjust the terms of their hedging mechanism. In this case, the hedger purchases a forward, futures or options contract covering the entire lifespan of their FX risk cycle. This single product guarantees […]

Settlement date

The settlement date refers to the date on which a transaction is due for completion. In the securities markets, there is usually a period between the date the trade date and the settlement date, that is the day when the purchaser pays the cash for the purchased asset. The period between the trade and the […]

Short currency hedge

Short hedging is a currency management tactic that can be used either to speculate or to hedge their currency exposure. In speculative terms, short hedging involves betting that a currency will go down against another currency or basket of currencies, based on market analysis. This is usually the domain of professional traders, who often specialise […]

Shortcut method

The shortcut method is a qualitative method of analysis approved only by the US accounting standards to test the effectiveness of a hedge relationship. Businesses exposed to market risks involving their assets and liabilities, and with hedging instruments to protect their margins against them, may want to apply hedge accounting to reduce income statement volatility. […]

Sistema di pagamento anticipato nazionale cinese (CNAPS)

Il sistema di pagamento anticipato nazionale cinese (CNAPS) rappresenta il protocollo dei pagamenti nazionali avviato dalla Banca Popolare Cinese nell’ambito più ampio programma, volto ad incrementare l’utilizzo globale dello yuan renminbi. Lanciato nel 2008, il CNAPS permette alla banca centrale cinese, la Banca Popolare Cinese, di garantire servizi di regolamento in tempo reale per tutti […]

Soft peg

A soft peg describes the type of exchange rate regime applied to a currency to keep its value stable against a reserve currency or a basket of currencies. Currencies with a soft peg are half way between those with a fixed or hard pegged exchange rate and those with a floating exchange rate. The main […]


Ein „Spotgeschäft“ (oder „Kassageschäft“) ist eine Transaktion zwischen einem Käufer und einem Verkäufer zu einem „Spotkurs“. Das Spotgeschäft ist die einfachste Form des Währungsumtauschs und wird gegen sofortige Kasse und Lieferung zum aktuellen Marktwert („on the spot“ = auf der Stelle) durchgeführt. Die Abwicklungsfrist für das Spotgeschäft auf dem Währungsmarkt beträgt 2 Tage ab dem […]