Month: October 2016
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Liquid Market
Concept of Liquid Market in Futures TradingIn this context of financial law, the following is a definition of Liquid Market: A market in which selling and buying can be accomplished with minimal effect on price.
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Average Rate Option
Concept of Average Rate Option in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): An option (i.e. the right to buy or sell a financial instrument at some agreed conditions) where the settlement is based on the difference between the strike and […]
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UCC Lien
Definition of UCC LienThis is the meaning of UCC Lien published by Marco Terry: It is a security interest given by the owner of property to secure debt. Factoring companies use liens that are defined in the UCC.
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Contract Month
ResourcesSee AlsoDelivery Month Futures Trading Consumer Protection Consumer Finance
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Mutual Termination Clause
Concept of Mutual Termination Clause in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A bilaterally agreed clause that allows both counterparties to a transaction to terminate the trade early under certain defined circumstances (for example […]
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Interdealer Broker
Concept of Interdealer Broker in Futures TradingIn this context of financial law, the following is a definition of Interdealer Broker: A broker that facilitates bilateral trades between large market participants
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Lockbox
Definition of LockboxThis is the meaning of Lockbox published by Marco Terry: A bank treasury management system. It is desgined to receieve payments by mail and deposit them to an account as quickly as possible. Most bank lockbox systems also scan invoices and documents and provide online […]
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Risk Mitigation Service
Concept of Risk Mitigation Service in Futures TradingIn this context of financial law, the following is a definition of Risk Mitigation Service: Similar to Portfolio Compression Services, Risk Mitigation Service providers evaluate the portfolio of a swaps market participant and enter into new […]
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Runners
Concept of Runners in Futures TradingIn this context of financial law, the following is a definition of Runners: Messengers or clerks on a trading floor who deliver orders received by phone clerks to brokers for execution in the pit.
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Original Margin
Concept of Original Margin in Futures TradingIn this context of financial law, the following is a definition of Original Margin: Term applied to the initial deposit of margin money each clearing member firm is required to make according to clearing organization rules based upon positions […]
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Position Accountability
Concept of Position Accountability in Futures TradingIn this context of financial law, the following is a definition of Position Accountability: A rule adopted by an exchange in lieu of position limits requiring persons holding a certain number of outstanding contracts to report the nature of […]
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Associated Person
Concept of Associated Person (AP) in Futures TradingIn this context of financial law, the following is a definition of Associated Person (AP): An individual who solicits or accepts (other than in a clerical capacity) orders, discretionary accounts, or participation in a commodity pool, or […]
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Local
Concept of Local in Futures TradingIn this context of financial law, the following is a definition of Local: An individual with exchange trading privileges who trades for his own account, traditionally on an exchange floor, and whose activities provide market liquidity. See Floor Trader, E-Local.
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Bunched Order
Concept of Bunched Order in Futures TradingIn this context of financial law, the following is a definition of Bunched Order: A discretionary order entered on behalf of multiple customers.
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Financing Cost
Carry (net Financing Cost)Concept of Carry (net Financing Cost) in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The difference between the cost of financing the purchase of an asset and the cash yield of the asset. Positive carry means that […]