Month: January 2016

  • Agreement

    Master Confirmation Agreement (mca)Concept of Master Confirmation Agreement (mca) in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): An agreement between two counterparties which sets out the terms and conditions that will apply between them […]

  • Artificial Price

    Concept of Artificial Price in Futures TradingIn this context of financial law, the following is a definition of Artificial Price: A futures price that has been affected by a manipulation and is thus higher or lower than it would have been if it reflected the forces of supply and demand.

  • Markit

    Concept of Markit in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A provider of independent data, portfolio valuations and OTC (over the counter) derivatives trade processing to the global financial markets.ResourcesSee AlsoDerivatives Contract

  • Yield to Maturity

    Concept of Yield to Maturity in Futures TradingIn this context of financial law, the following is a definition of Yield to Maturity: The rate of return an investor receives if a fixed income security is held to maturity.

  • Trading Floor

    Concept of Trading Floor in Futures TradingIn this context of financial law, the following is a definition of Trading Floor: A physical trading facility where traders make bids and offers via open outcry or the specialist system.

  • Macro Fund

    Concept of Macro Fund in Futures TradingIn this context of financial law, the following is a definition of Macro Fund: A hedge fund that specializes in strategies designed to profit from expected macroeconomic events.

  • Physical Settlement

    Concept of Physical Settlement in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The meeting of a settlement obligation under a derivative (i.e. an instrument that transfers risk from one party to the other) contract through the receipt or […]

  • Deck

    Concept of Deck in Futures TradingIn this context of financial law, the following is a definition of Deck: The orders for purchase or sale of futures and option contracts held by a floor broker.

  • Core Principle

    Concept of Core Principle in Futures TradingIn this context of financial law, the following is a definition of Core Principle: A provision of the Commodity Exchange Act with which a registered entity such as a designated contract market, swap execution facility, swap data repository, or […]

  • Credit Limit

    Credit Limit in relation to Home Equity Lines of CreditIn this context, a definition of Credit Limit is provided: The maximum amount that may be borrowed on a credit card or under a home equity line of credit plan.

  • Hidden Quantity Order

    Concept of Hidden Quantity Order in Futures TradingIn this context of financial law, the following is a definition of Hidden Quantity Order: An order placed on an electronic trading system whereby only a portion of the order is visible to other market participants. As the displayed part of the […]

  • Merchant

    Concept of Dealer/Merchant (AD) in Futures TradingIn this context of financial law, the following is a definition of Dealer/Merchant (AD): A large trader that declares itself a “Dealer/Merchant” on CFTC Form 40,which provides as examples “wholesaler, exporter/importer, shipper, […]

  • Fixed Income Security

    Concept of Fixed Income Security in Futures TradingIn this context of financial law, the following is a definition of Fixed Income Security: A security whose nominal (or current dollar) yield is fixed or determined with certainty at the time of purchase, typically a debt security

  • Bankruptcy

    Concept of Bankruptcy in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A credit event used in all credit default swaps where the reference entity is a corporate (bankruptcy does not apply to Sovereign names). Bankruptcy events include the […]

  • Notional Amount

    Concept of Notional Amount in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The amount of principal underlying the derivative (i.e. an instrument that transfers risk from one party to the other) contract, to which interest rates are applied […]