Art. 2 FINMA Ordinance of March 6, 2024 on the Credit Risks of Banks and Securities Dealers (OCré-FINMA) - Definitions

For the purposes of this ordinance, the following terms are defined as: a. securities financing transactions: transactions involving the lending and repossession and similar operations on securities; b. securities lending transactions: credit transactions secured by securities with regular margin compensation (margin lending); c. repo and similar securities transactions: transactions involving repurchase and reverse repurchase agreements on securities and securities lending and borrowing transactions; d. derivative transactions with margin compensation: derivative transactions for which a margin agreement provides for the calculation and payment or receipt, subject to potential thresholds and minimum transfer amounts, of margin payments at regular intervals based on the net market value of the derivative contracts included in the margin agreement, excluding transactions with unilateral margin agreements where the bank only provides collateral without receiving any; e. long settlement transactions: transactions for which the contractually agreed settlement or delivery date is later than the earlier of the following two dates, calculated from the day the transaction was concluded: 1. the market standard date for the relevant instrument, or 2. five business days; f. CVA risk: the risk of losses on the bank's market value due to valuation adjustments of derivatives (credit valuation adjustment, CVA) and securities financing transactions resulting from the counterparty's default risk (Art. 48, para. 3, OFR).