What types of specific risks are considered in the securities financing transaction business?

The activity of repurchase transactions and securities lending generates counterparty risk and settlement risk. Counterparty risk is the risk incurred in the event of default by a counterparty or counterparties considered as the same group that is unable to meet their contractual obligations. Settlement and delivery risk is the risk that repurchase transactions and securities lending will not be settled on the scheduled delivery date.

In order to control this risk, Natixis Asset Management Finance sets up a risk management system that is regularly monitored by the risk and internal control team.