• PRU A4.6.7 PRU A4.6.7

    If assets involved in the transaction are to be delivered by the Authorised Person and the transaction remains unsettled:

    E = max(CV-MV, 0)

    • Guidance

      E is the price difference to which the Authorised Person is exposed, being the difference between the agreed settlement price for the debt instrument, equity, foreign currency or commodity in question and its current market value, where the difference could involve a loss for the firm.