
there is sufficient cash available to cover all purchases. Inability to pay
for securities when presented by the seller for settlement will result in
a failed settlement and an interest claim from the settlement date up to
the date on which the purchase finally does settle. A secondary
objective is to make effective use of any cash balances (whether
uncommitted or pending trade activities) and in so doing enhance the
returns (interest received on credit balances) and reduce the funding
costs (on overdrafts and credit facilities).
Cash positioning and cash management is the process that includes
cash inflows and outflows from non-trading events as shown ...