EXCHANGE TRADED COMMODITIES (ETC) RISKS Sample Clauses

EXCHANGE TRADED COMMODITIES (ETC) RISKS. Exchange traded commodities (ETC) are securities which enable the investors to invest in commodities. Just like ETFs, ETCs are traded at the stock exchange. Contrary to the ETF, the capital invested in an ETC is not deemed a special asset which is protected in case of the issuer’s insolvency. This is due to the fact that the ETC is a bond issued by the ETC issuer. Compared to a physically replicating ETF, the investor in an ETC thus faces an issuers risk. In order to minimize this risk, issuers use various hedging methods. In addition to the general risks inherent in the investment in securities, ETC investments are subject to additional specific risks which are outlined below. • Price risk: In general, investments in commodities are subject to the same price risks as direct investments in commodities. Extraordinary events such as natural disasters, political conflicts, government regulation or weather changes may affect the availability of the commodities and thus lead to a drastic change in the price of the underlying asset and potentially the derivative as well. This can also result in a limitation of the liquidity and declining prices. In addition, the general economic development has a major impact on the demand for certain commodities such as metal or energy sources as a production factor significant to the sector. • Counterparty risk: The trading in derivatives triggers a risk related to the structuring of the derivative contract. If the other party is not willing or able to meet its obligation under the derivative contract, it is possible that the derivative contract is not executed either in full or in part.
Sample 1
AutoNDA by SimpleDocs

Related to EXCHANGE TRADED COMMODITIES (ETC) RISKS

  • CLEAN AIR ACT AND THE FEDERAL WATER POLLUTION CONTROL ACT (a) If the Sub-Recipient, with the funds authorized by this Agreement, enters into a contract that exceeds $150,000, then any such contract must include the following provision: Contractor agrees to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. 7401-7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. 1251-1387), and will report violations to FEMA and the Regional Office of the Environmental Protection Agency (EPA).

  • Federal Water Pollution Control Act 1. The contractor agrees to comply with all applicable standards, orders, or regulations issued pursuant to the Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251 et seq.

  • Clean Air Act and Federal Water Pollution Control Act 1. The contractor agrees to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act, as amended, 42 U.S.C. § 7401 et seq.

  • OF CLEAN AIR ACT AND FEDERAL WATER POLLUTION CONTROL ACT This provision is applicable to all Federal-aid construction contracts and to all related subcontracts. By submission of this bid/proposal or the execution of this contract, or subcontract, as appropriate, the bidder, proposer, Federal-aid construction contractor, or subcontractor, as appropriate, will be deemed to have stipulated as follows:

  • National Environmental Policy Act All subrecipients must comply with the requirements of the National Environmental Policy Act (NEPA) 42 U.S.C. 4321 et seq., and the Council on Environmental Quality (CEQ) Regulations (40 C.F.R. Parts 1500-1508) for Implementing the Procedural Provisions of NEPA, which requires Subrecipients to use all practicable means within their authority, and consistent with other essential considerations of national policy, to create and maintain conditions under which people and nature can exist in productive harmony and fulfill the social, economic, and other needs of present and future generations of Americans.

  • Foreign Account Tax Compliance Act A. To the extent the Reinsurer is subject to the deduction and withholding of premium payable hereon as set forth in the Foreign Account Tax Compliance Act (Sections 1471-1474 of the Internal Revenue Code), the Reinsurer shall pay or allow such deduction and withholding from the premium payable under this Contract.

  • NATIONAL SECURITY Nothing in this Agreement shall be construed:

  • Information Exchange As soon as reasonably practicable after the Effective Date, the Parties shall exchange information regarding the design and compatibility of the Interconnection Customer’s Interconnection Facilities and Participating TO’s Interconnection Facilities and compatibility of the Interconnection Facilities with the Participating TO’s Transmission System, and shall work diligently and in good faith to make any necessary design changes.

  • Clear Market During the period from the date hereof through and including the Closing Date, the Company will not, without the prior written consent of the Representatives, offer, sell, contract to sell or otherwise dispose of any debt securities issued or guaranteed by the Company and having a tenor of more than one year.

  • Organizational Security 2.1.1 It is the mutual intention of the parties that the provisions of this Article protect the rights of individual workers without restricting CSEA’s rights.

Time is Money Join Law Insider Premium to draft better contracts faster.