The convention for adjustment of event dates relating to a financial transaction towards a valid business day. Created under an amendment to the Commodity Exchange Act in 1974.
The most relevant conventions are: - Following: where the date is adjusted to the first following day that is a Business Day - Modified Following: the same as ‘Following’, unless the first following Business Day is in the next calendar month, in which case that date will be the first preceding day that is a Business Day - Preceding: where the date is adjusted to the first preceding date that is a Business Day U. Its mission is to protect market users and the public from fraud, manipulation, and abusive practices related to the sale of commodity and financial futures and options, and to foster open, competitive, and financially sound futures and option markets.
A risk which arises from a company's people, system or processes.
Tri Optima can, through its termination service, reduce the ticket count and thereby the amount of manual steps required resulting in less operational risk.
Sensitivity of the value of a trade to a related interest rate.