Technical Guide on Internal Audit of Treasury ... - CAalley.com

<strong>Technical</strong> <strong>Guide</strong> on Internal Audit of Treasury Function in Banks
Liquidation
Long Position
Market Risk
Mark-to-Market
Maturity
National Settlement System
(NSS)
Negotiated Dealing System
(NDS)
Offer
Open Position
Operational Risk
Over the Counter (OTC)
Overnight
Political Risk
The closing of an existing position through
the execution of an off-setting transaction.
A position that appreciates in value if market
prices increase.
Exposure to changes in market prices.
Process of re-evaluating all open positions
with the current market prices. These new
values then determine margin requirements.
The date for settlement or expiration of a
financial instrument.
All clearings conducted in all clearing
houses in all parts of the country will be
settled in a single centralized location in
central bank money.
Negotiated Dealing System (NDS) is an
electronic platform for facilitating dealing in
Government Securities and Money Market
Instruments.
The rate at which a dealer is willing to sell a
currency.
A deal not yet reversed or settled with a
physical payment.
The risk of loss resulting from inadequate or
failed internal processes, people and
systems, or from external events.
It is used to describe any transaction that is
not conducted over an exchange.
A trade that remains open until the next
business day.
Exposure to changes in governmental policy
which will have an adverse effect on an
investor’s position.
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