principal risk
Defined in Article 2, Regulation (EU) No 795/2014 of the ECB
Uses as of 01/10/2016
Definitions over time (1)
-
12/08/2014 – 06/12/2017 applies on 01/10/2016 Article 2, Regulation (EU) No 795/2014 of the ECB Scope: Whole act
‘principal risk’ means the risk that a counterparty will lose the full value involved in a transaction, i.e. either the risk that a seller of a financial asset will irrevocably deliver the asset, but not receive payment, or the risk that a buyer of a financial asset will irrevocably pay for, but not receive the asset;
Other definitions of this term in this act (1)
Each has its own scope, dates and uses. Open one to see when it applies.