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Market Participants Should, Where Activity Justifies It, Aim to Reduce

Question 168

Multiple Choice

Market participants should, where activity justifies it, aim to reduce settlement and related credit risk on currency transactions by:


A) Establishing realistic daylight limits for counterparties.
B) Monitoring all payments to counterparties who are known to be experiencing difficulties.
C) Establishing legally binding bilateral netting agreements with counterparties or participating in a multilateral netting system.
D) Seeking pre-payment.

Correct Answer:

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