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   Overnight Delivery Risk
   















 

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Overnight Delivery Risk

The risk incurred when one side of a trade settles the day before the other side. This overnight delay exposes one of the counterparties to the risk that the other side will fail to meet its obligations. Also called Clean Risk (2). See also Daylight Risk Exposure.

For a regulatory overview of settlement risk, read "Key Risk Concepts: Settlement Risk."

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