Finance

Tag: Derivatives contracts

  • Calypso

    Concept of Calypso in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A single integrated platform that supports trading, risk management and processing (real-time monitoring) for credit, interest rate, equity, commodity and foreign exchange […]

  • Margin

    Concept of Margin in Futures TradingIn this context of financial law, the following is a definition of Margin: The amount of money or collateral deposited by a customer with his broker, by a broker with a clearing member, or by a clearing member with a clearing organization. The margin is not […]

  • 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. […]

  • Forward

    Concept of Forward in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A contract involving the sale by one party and the purchase by another party of a predefined amount of an underlying instrument, at a predefined price and a predefined date […]

  • Tranche

    Concept of Tranche in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A piece or portion of a structured deal, or one of several related securities that are issued together but offer different risk-reward characteristics.ResourcesSee […]

  • Pool Factors

    Concept of Pool Factors in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The current principal balance of a particular asset backed bond outstanding divided by the original issued balance of such bonds expressed as a percentage.ResourcesSee […]

  • Gearing

    Concept of Gearing in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The characteristic of derivatives which enables a far greater reward (or loss) for the same, or much smaller, initial outlay. It is the ratio of exposure to investment […]

  • Interest Rate Swap

    Concept of Interest Rate Swap in Futures TradingIn this context of financial law, the following is a definition of Interest Rate Swap: A swap in which the two counterparties agree to exchange interest rate flows. Typically, one party agrees to pay a fixed rate on a specified series of payment […]

  • Credit Derivative Transactions

    Markit Red (reference Entity Database)Concept of Markit Red (reference Entity Database) in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A market standard reference entity database providing critical reference data used to document and […]

  • Deliverable Obligation

    Concept of Deliverable Obligation in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): An asset that is eligible to be delivered to the protection seller following a credit event or that can be used to provide the reference price for cash […]

  • Mark-to-Market

    Concept of Mark to Market in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The process of revaluing an OTC (over the counter) or exchange traded product each day. Mark to market gains or losses are the difference between the closing price on […]

  • Basis Risk

    Concept of Basis Risk in Futures TradingIn this context of financial law, the following is a definition of Basis Risk: The risk associated with an unexpected widening or narrowing of the basis between the time a hedge position is established and the time that it is lifted.

  • Covered Option

    Concept of Covered Option in Futures TradingIn this context of financial law, the following is a definition of Covered Option: A short call or put option position that is covered by the sale or purchase of the underlying futures contract or other underlying instrument. For example, in the case […]

  • Markit Boat

    Concept of Markit Boat in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A MiFID-compliant trade reporting platform which enables investment firms to meet their pre-trade quoting and post-trade reporting obligations for all their European OTC […]

  • Long Form

    Concept of Long Form in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A confirmation that is independent of any master agreement incorporated by reference. Since the inception of Master Confirmation Agreements (MCAs), this term has also been […]