APPENDIX III

MiFID customer protection regulations regarding derivatives

INTRODUCTION

In most interest rate risk strategies derivatives play an important part. When banks advise their clients on derivatives or sell derivatives to them, these activities are regulated in order to protect the customer. This is the reason why it is necessary for all financial professionals dealing with interest rate risk to be aware of the guidelines. As a large number of the financial professionals reading this book will be either working in the EU, or may indirectly be affected by EU regulations, we’ll spend some time here investigating the most important customer protection regulations under MiFID. MiFID stands for Markets in Financial Instruments Directive ...

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