Finance

Month: May 2016

  • Open Outcry

    Concept of Open Outcry in Futures TradingIn this context of financial law, the following is a definition of Open Outcry: A method of public auction, common to most U.S. commodity exchanges during the 20th century, where trading occurs on a trading floor and traders may bid and offer […]

  • Commodity Futures

    Concept of Commodity Futures in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A bilateral contract to pay for a commodity at a set price at an agreed time in the future. Commodity futures are exchange traded.ResourcesSee AlsoDerivatives Contract

  • Separate Trading of Registered Interest and Principal Securities

    Concept of STRIPS (Separate Trading of Registered Interest and Principal Securities) in Futures TradingIn this context of financial law, the following is a definition of STRIPS (Separate Trading of Registered Interest and Principal Securities): A book-entry system operated by the Federal […]

  • Physical

    Concept of Physical in Futures TradingIn this context of financial law, the following is a definition of Physical: A contract or derivative that provides for the physical delivery of a commodity rather than cash settlement. See Financial.

  • Affirmxpress

    Concept of Affirmxpress in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): An electronic messaging hub for front office trader verification and affirmation of inter-dealer brokered transactions.ResourcesSee AlsoDerivatives Contract

  • Sovereign

    Concept of Sovereign in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A borrower that is a national government or a government agency. Sovereigns account for a large proportion of all emerging market reference entities, but are generally […]

  • Exercise

    Concept of Exercise in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The process by which the buyer of an option may take up the right to buy or sell the underlying asset.ResourcesSee AlsoDerivatives Contract

  • Exchange Traded Fund

    Concept of Exchange Traded Fund (ETF) in Futures TradingIn this context of financial law, the following is a definition of Exchange Traded Fund (ETF): An investment vehicle holding a commodity or other asset that issues shares that are traded like a stock on a securities exchange.

  • Crack Spread

    Concept of Crack Spread in Futures TradingIn this context of financial law, the following are some alternative definitions of Crack Spread: (a) In energy futures, the simultaneous purchase of crude oil futures and the sale of petroleum product futures to establish a refining margin. One can […]

  • Coupon Swap

    Concept of Coupon Swap in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): An interest rate swap, often from a fixed rate to a floating rate, or from a floating rate to a fixed rate.ResourcesSee AlsoDerivatives Contract

  • Foreign Exchange Forward

    Concept of Foreign Exchange Forward in Futures TradingIn this context of financial law, the following is a definition of Foreign Exchange Forward: A transaction that solely involves the exchange of two different currencies on a specific future date at a fixed rate agreed upon on the inception […]

  • Locked Limit

    Concept of Locked Limit in Futures TradingIn this context of financial law, the following is a definition of Locked Limit: A price that has advanced or declined the permissible limit during one trading session, as fixed by the rules of an exchange. Also called Limit Move.

  • Calculator

    Markit Rcd CalculatorConcept of Markit Rcd Calculator in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): An industry tool which enables calculation of asset backed CDS trades for all monthly settlements within two business days of bond payment […]

  • Small Traders

    Concept of Small Traders in Futures TradingIn this context of financial law, the following is a definition of Small Traders: Traders who hold or control positions in futures or options that are below the reporting level specified by the exchange or the CFTC.

  • Floor

    Concept of Floor in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A lower limit placed on the payoff of a trade, guaranteeing a minimum payoff to the buyer.ResourcesSee AlsoDerivatives Contract