The Law Dictionary

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CONVERGENCE Definition & Legal Meaning

Definition & Citations:

(1) In the EXCHANGETRADED DERIVATIVE market, the gradual drawing together of SPOT PRICES and FUTURES PRICES as contract maturity approaches; the convergence means that the BASIS, or price difference, gradually narrows. (2) In the ALTERNATIVE RISK TRANSFER market a crosssector fusion of business activities between INSURERS and BANKS; the two groups participate in each other

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