Pre-Settlement Exposure definition
Pre-Settlement Exposure means on any day, and with respect to all Foreign Exchange Contracts, the sum of (a) an amount of Dollars that Citibank or an Affiliate of Citibank would be required to pay (with regard to Foreign Exchange Contracts confirmed under an ISDA or IFEMA Master Agreement, such amount to be calculated for each such Agreement on a net basis with any such amounts that Citibank or such Affiliate would receive) to replace each of the Foreign Exchange Contracts, determined on the basis of quotations from four leading dealers in the relevant market selected by Citibank or an Affiliate of Citibank in good faith (i) from among dealers of the highest credit standing which satisfy all the criteria that Citibank or such Affiliate applies generally at the time in deciding whether to offer or to make an extension of credit and (ii) to the extent practicable, from among such dealers having an office in the same city and (b) an amount of Dollars that is determined by Citibank or such Affiliate to be equal to the aggregate of the amounts used by Citibank or such Affiliate to monitor the financial risk associated with potential changes in market value of each such Foreign Exchange Contract to and including the settlement date of each such Foreign Exchange Contract.