Derivatives · glossary
A company that is not a bank, an insurer or a fund. Below the clearing thresholds it need not clear its trades or post collateral by law. Atlas states its status in Part 5 of the Schedule and must report any change. Schedule, Part 5.3 · Chapter 14
Explained in Chapter 14, The Wider Room, of Derivatives.
Party B is Atlas, and Party A is Pellhaven. A non-financial counterparty is a company that is not a bank, an insurer or a fund. The clearing thresholds are the sizes of derivative position above which such a company is treated like a financial firm. Atlas's two trades were far below them, and hedging trades like these do not count towards them at all.Read Chapter 14, The Wider Room →
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