The practice whereby a lender holds securities at a borrower’s request in anticipation of that borrower taking delivery.
A form of guarantee or insurance, frequently offered by agents. Terms vary significantly and the value of the indemnity does also.
A share index is a number that indicates the state of a stock market. It is based on the combined share prices of a set of companies.
Initial margin is collateral collected by a counterparty and posted on a two-way basis (each party posts and receives at the same time) to minimise current and potential risk exposure.
The first sale of stock by a private company to the public.
An institutional investor is a company or organization that invests money on behalf of other people. Mutual funds, pensions, and insurance companies are examples. Institutional investors often buy and sell substantial blocks of stocks, bonds, or other securities.
The date that is entered into the securities settlement system as the settlement date, and on which the parties to a securities transaction agree that settlement is to take place.
An interdealer broker (IDB) is a specialist financial intermediary that facilitates transactions between broker-dealers, dealer banks and other financial institutions rather than private individuals.
International Financial Reporting Standards set common rules so that financial statements can be consistent, transparent, and comparable around the world. IFRS are issued by the International Accounting Standards Board (IASB).
An International Securities Identification Number is a code that uniquely identifies a specific securities issue.
A neutral non-profit association domiciled in Zurich (Switzerland), ISSA was conceived as an idea in 1975 for an association of securities services providers from across the globe. The association is designed to disseminate information on the developments in the rapidly changing securities markets and to offer securities operations professionals a forum to exchange ideas and issues of interest.
The International Swaps and Derivatives Association is a trade organisation created by the private negotiated derivatives market that represents participating parties.
An interest rate swap is a financial derivative that companies use to exchange interest rate payments with each other. Swaps are useful when one company wants to receive a payment with a variable interest rate, while the other wants to limit future risk by receiving a fixed-rate payment instead.
An institution that facilitates a financial transaction between two parties.
Refers to the excess of cash over securities or securities over cash in a repo/reverse repo, sell/buy-buy/sell, or securities lending transaction. One party may require an initial margin due to the perceived credit risk of the counterpart.