Finance

Category: S

  • Seat

    Concept of Seat in Futures TradingIn this context of financial law, the following is a definition of Seat: An instrument granting trading privileges on an exchange. If the exchange has a mutual ownership structure, a seat may also represent an ownership interest in the exchange.

  • Systemic Risk

    Concept of Systemic Risk in Futures TradingIn this context of financial law, the following is a definition of Systemic Risk: The risk that a default by one market participant will have repercussions on other participants due to the interlocking nature of financial markets. For example, Customer […]

  • Security

    Concept of Security in Futures TradingIn this context of financial law, the following is a definition of Security: Generally, a transferable instrument representing an ownership interest in a corporation (equity security or stock) or the debt of a corporation, municipality, or sovereign. Other […]

  • Strip

    Concept of Strip in Futures TradingIn this context of financial law, the following is a definition of Strip: A sequence of futures contract months (e.g., the June, July, and August natural gas futures contracts) that can be executed as a single transaction.

  • Speculator

    Concept of Speculator in Futures TradingIn this context of financial law, the following is a definition of Speculator: In commodity futures, a trader who does not hedge, but who trades with the objective of achieving profits through the successful anticipation of price movements.

  • Snowballs

    Concept of Snowballs in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A structured interest rate derivative (i.e. an instrument that transfers risk from one party to the other) transaction where for an initial term the coupon is specified. […]

  • Schedule of Accounts

    Definition of Schedule of AccountsThis is the meaning of Schedule of Accounts published by Marco Terry: It’s a form that many client’s use to submit their invoices for funding to the factoring company.

  • Security-Based Swap Dealer

    Concept of Security-Based Swap Dealer in Futures TradingIn this context of financial law, the following is a definition of Security-Based Swap Dealer: A swap dealer that deals in security based swaps under SEC regulation. See 7 USC 1a(43).

  • Shipping Certificate

    Concept of Shipping Certificate in Futures TradingIn this context of financial law, the following is a definition of Shipping Certificate: A negotiable instrument used as the futures delivery instrument for certain physical commodities. The shipping certificate is issued by exchange-approved […]

  • Short Hedge

    Concept of Selling Hedge (or Short Hedge) in Futures TradingIn this context of financial law, the following is a definition of Selling Hedge (or Short Hedge): Selling futures contracts to protect against possible decreased prices of commodities. See Hedging.

  • Stepping Out

    Concept of Stepping Out in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The process where one of the original parties exits a transaction, and instead of terminating, a third party steps in upon identical terms and assumes the rights and […]

  • Stop-Close-Only Order

    Concept of Stop-Close-Only Order in Futures TradingIn this context of financial law, the following is a definition of Stop-Close-Only Order: A stop order that can be executed, if possible, only during the closing period of the market. See also Market-on-Close Order.

  • Sealed Bid Auction

    Concept of Sealed Bid Auction in Futures TradingIn this context of financial law, the following is a definition of Sealed Bid Auction: A form of auction where buyers submit one concealed bid (or sellers submit one concealed offer, in the case of a reverse auction). After a round of bidding has […]

  • Stop Logic Functionality

    Concept of Stop Logic Functionality in Futures TradingIn this context of financial law, the following is a definition of Stop Logic Functionality: A provision applicable to futures traded on the CME’s Globex electronic trading system designed to prevent excessive price movements caused by […]

  • Settlement Costs

    Settlement Costs in the Context of Mortgage RefinancingsIn this context, a definition of Closing (or Settlement) Costs may be distilled, worded as follows: Fees paid when you close (or settle) on a loan. These fees may include application fees; title examination, abstract of title, title […]