ONLINE FX GLOBAL CODE PRO

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Risk Management and Compliance (PRO)

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  • 1
    FX E-Trading Platform: Any system that allows Market Participants to execute trades electronically in the FX Market ↩︎
  • 2
    Applicable Law: With respect to a Market Participant, the laws, rules, and regulations applicable to it and the FX Market in each jurisdiction in which it does business ↩︎
  • 3
    FX E-Trading Platform: Any system that allows Market Participants to execute trades electronically in the FX Market ↩︎
  • 4
    FX E-Trading Platform: Any system that allows Market Participants to execute trades electronically in the FX Market ↩︎
  • 5
    Settlement Risk: The risk of outright loss of the full value of a transaction resulting from the counterparty’s failure to settle. This can arise from paying away the currency being sold, but failing to receive the currency being bought. (Settlement Risk is also referred to as “Herstatt Risk.”) ↩︎
  • 6
    Compliance Risk: Risk of legal or regulatory sanctions, material financial loss, or loss to reputation as a result of a Market Participant’s failure to comply with laws, regulations, rules, industry standards, and codes of conduct applicable to its FX activities. Compliance concerns include observing proper standards of market conduct, managing conflict of interest, treating customers fairly, and taking measures for the prevention of money laundering and terrorist financing. ↩︎
  • 7
    Client: A Market Participant requesting transactions and activity from, or via, other Market Participants that provide market making or other trade execution services in the FX Market. A Market Participant can act as a Client in some instances while making markets in other instances ↩︎
  • 8
    Stop Loss Orders: A contingent order that triggers a buy or sell order for a specified notional amount when a reference price has reached or passed a pre-defined trigger level. There are different variants of Stop Loss Orders, depending on the execution relationship between counterparties, the reference price, the trigger, and the nature of the triggered order. A series of parameters are required to fully define a Stop Loss Order, including the reference price, order amount, time period, and trigger ↩︎
  • 9
    Applicable Law: With respect to a Market Participant, the laws, rules, and regulations applicable to it and the FX Market in each jurisdiction in which it does business ↩︎
  • 10
    Applicable Law: With respect to a Market Participant, the laws, rules, and regulations applicable to it and the FX Market in each jurisdiction in which it does business ↩︎
  • 11
    Prime Brokerage Participant: A Market Participant that is either (i) a Prime Broker, (ii) a Client using the services of a Prime Broker, or (iii) a Market Participant acting as an executing dealer (price maker) or execution intermediary (such as an Agent or platform) between the Prime Brokerage Client and the Prime Broker ↩︎