Mindblown: a blog about philosophy.
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Price Banding
Concept of Price Banding in Futures TradingIn this context of financial law, the following is a definition of Price Banding: A CME Group and ICE-instituted mechanism to ensure a fair and orderly market on an electronic trading platform. This mechanism subjects all incoming orders to price […]
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Business Day
Bad (non Working) Business DayConcept of Bad (non Working) Business Day in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A day on which it is not possible to make payments, or days on which banks are not open for business. Bad business days […]
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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 […]
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Clearing Organization
Concept of Clearing Organization in Futures TradingIn this context of financial law, the following is a definition of Clearing Organization: An entity through which futures and other derivative transactions are cleared and settled. It is also charged with assuring the proper conduct of each […]
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Bull Spread
Concept of Bull Spread in Futures TradingIn this context of financial law, the following are some alternative definitions of Bull Spread: (a) A strategy involving the simultaneous purchase and sale of options of the same class and expiration date but different strike prices. In a bull vertical […]
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Grantor
Concept of Grantor in Futures TradingIn this context of financial law, the following is a definition of Grantor: The maker, writer, or issuer of an option contract who, in return for the premium paid for the option, stands ready to purchase the underlying commodity (or futures contract) in the […]
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Price Differential
Strike Price DifferentialConcept of Strike Price Differential in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The difference between the settlement price and the strike price at the point of option exercise.ResourcesSee AlsoDerivatives Contract
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Notice of Intent to Deliver
Concept of Notice of Intent to Deliver in Futures TradingIn this context of financial law, the following is a definition of Notice of Intent to Deliver: A notice that must be presented by the seller of a futures contract to the clearing organization prior to delivery. The clearing organization […]
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Closing Trade
Concept of Closing Trade in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A bought or sold trade which is used partly to offset an open position, or fully offset it and close it out.ResourcesSee AlsoDerivatives Contract
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Platform
Thunderhead NowConcept of Thunderhead Now in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A technology platform used for OTC (over the counter) trade confirmations and term sheet generation. Thunderhead NOW provides the straight through […]
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Depository Receipt
ResourcesSee AlsoVault Receipt Futures Trading Consumer Protection Consumer Finance
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Job Lot
Concept of Job Lot in Futures TradingIn this context of financial law, the following is a definition of Job Lot: A form of contract having a smaller unit of trading than is featured in a regular contract.
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Reporting Level
Concept of Reporting Level in Futures TradingIn this context of financial law, the following is a definition of Reporting Level: Sizes of positions set by the exchanges and/or the CFTC at or above which commodity traders or brokers who carry these accounts must make daily reports about the size […]
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Declaration Date
ResourcesSee AlsoExpiration Date Futures Trading Consumer Protection Consumer Finance
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Credit Default Option
Concept of Credit Default Option in Futures TradingIn this context of financial law, the following is a definition of Credit Default Option: A put option that makes a payoff in the event the issuer of a specified reference asset defaults. Also called default option.
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