Having completed our review of derivatives transactions, we now consider the risks such transactions may pose. Rule 18f-4(a) defines "derivatives risks" to include "leverage, market, counterparty, liquidity, operational, and legal risks and any other [material] risks." The adopting release (the "Release") provides helpful descriptions of these risks and some examples.
Continue reading at The Asset Management ADVocate.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.