contractual element that is a statement made by a party to the contract, before or at the time of making the contract, in regard to some fact, circumstance, or state of affairs pertinent to the contract, which the counterparty(ies) rely on, or is influential in bringing about the contract
representation
A party may later claim misrepresentation if a false representation has been made. They may be entitled to rescind the contract, which means that the contract would be set aside and the receiving party may also be entitled to damages to put them back into the position they would have been had the contract never been entered into.
legal holding restriction that defines the concept of a qualified investor for a given purpose and specifies that only such qualified investors may hold the security
If a holding period is not defined, then the period for which the restriction applies is indefinite.
regular, contract-specific schedule including the dates on which interest is due to be paid
The dates may be fixed, or expressed as an offset of the calculation dates. Typically the payment dates are fixed and calculation dates are expressed as an offset, however.
acts as an enabler in a situation in which an event, a task, a conversation or something else occurs
contractual element that specifies the method of reducing credit, settlement and other risks by aggregating (combining) two or more obligations to achieve a reduced net obligation
netting provision
preferred share that confers zero votes per share, may be exchanged for securities of another issuer, provides a periodic income whose dividend rate is set periodically, and is registered
preferred, non-voting, exchangeable, adjustable income, registered share
depositary receipt that represents shares in a private placement under the SEC Rule 144-A
privately placed depositary receipt
Some foreign companies will set up an ADR program under SEC Rule 144-A. This provision makes the issuance of shares a private placement. Shares of companies registered under Rule 144-A are restricted stock and may only be issued to or traded by qualified institutional buyers (QIBs). U.S. public shareholders are generally not permitted to invest in these ADR programs, and most are held exclusively through the Depository Trust & Clearing Corporation, so there is often very little information on these companies.
debt security issued by the government of a country
window of time within a trading day in which orders may be placed and filled
trading session
An exchange may have several trading sessions during a day. For example, the exchange may be open from 9 a.m. until 10:30 a.m., from 11:30 a.m. until 1 p.m., and from 2 p.m. to 3:30 p.m. Holding several trading sessions gives the market more time to digest information rationally without having to respond immediately.
credit facility that enables the borrower to withdraw funds, repay, and withdraw again
revolving line of credit
Revolving credit facilities are essentially lines of credit with variable interest rates.
ratio of a quantity index of value added to a quantity index of labor input
labor productivity, based on value added
Shows the time profile of how productively labour is used to generate value added. Labour productivity changes reflect the joint influence of changes in capital, as well as technical, organisational and efficiency change within and between firms, the influence of economies of scale, varying degrees of capacity utilisation and measurement errors.
At the aggregate level, value-added based labour productivity forms a direct link to a widely used measure of living standards, income per capita. Productivity translates directly into living standards, by adjusting for changing working hours, unemployment, labour force participation rates and demographic changes.
preferred share that confers less than one vote per share, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic stated income and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, restricted voting, redeemable, participating, registered share
option that has a non-standard payout structure or other feature
exotic option
Commodity Futures Trading Commission (CFTC) glossary, https://www.cftc.gov/LearnAndProtect/EducationCenter/CFTCGlossary/glossary_e.html
Exotic options include Asian options and lookback options, and are mostly traded in the over-the-counter market.
direct ownership of an entity recorded as accounting consolidation
preferred share that confers exactly one vote per share, may be exchanged for securities of another issuer, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic stated income and dividends not paid in any year accumulate, and is registered
preferred, voting, redeemable/exchangeable/extendable, cumulative, registered share
relates something to the date that it was closed
contract in which the rights and obligations of one party may be transferred to another party
grant of permission needed to legally perform some task, provide some service, exercise a certain privilege, or pursue some business or occupation
Barron's Dictionary of Business and Economics Terms, Fifth Edition, 2012
financial institution that does not have a full banking license and typically is not supervised by a national or international banking regulatory agency
The term 'non-bank' may have been derived from 'non-deposit taking banking institution'. To be clearer, in the United States, non-depository institutions are explicitly disjoint with depository institutions (financial institutions that take deposits of some sort, potentially including securities) in FIBO. Banks are defined as financial institutions that take demand deposits from the public and that also provide commercial lending services. Many 'non-bank' institutions take deposits or provide commercial lending services, but they may not do both.
Barron's Dictionary of Banking Terms, Sixth Edition, 2012
A non-depository financial institution acts as a middleman between two parties in a financial transaction, and does not provide traditional depository services, such as brokerage firms, insurance companies, and investment companies. These kinds of institutions facilitate alternative financial services, such as investment (both collective and individual), risk pooling, financial consulting, brokering, money transmission, and check cashing. NBFIs are a source of consumer credit (along with licensed banks). Examples of nonbank financial institutions include insurance firms, venture capitalists, currency exchanges, some microloan organizations, and pawn shops. These non-bank financial institutions provide services that are not necessarily suited to banks, serve as competition to banks, and specialize in sectors or groups. Note, however, that there are exceptions in Europe, for example, where the same firm may have banking, insurance, and brokerage functions.
non-banking financial institution (NBFI)
swap in two counterparties each agree to pay the other cash flows on defined dates during an agreed period, based on a specified notional amount and a floating interest, floating inflation or fixed interest rate
ISO 10962, Securities and related financial instruments - Classification of financial instruments (CFI) code, Fifth edition, 2021-06-15
bond that is backed by collateral, such as a tangible asset or income stream, in addition to a general promise to pay
A secured bond may be collateralized by a claim on real assets, such as a factory or auto fleet; or by a claim on a revenue stream. A secured bond differs from a mortgage in that proceeds of the bond sale aren't used to acquire the asset.
option trading strategy that uses options to limit the range of possible returns on a financial instrument
fence
The expiration dates of all the options are usually the same. The call strike is normally chosen in such a way that the sum total of the three option premiums is equal to zero. This investment strategy will ensure that the value of the investment at expiry will be between the strike price on the short call and the strike price on the long put. Thus, possible gains and losses (the value of the financial instrument minus the cost of acquiring it) are confined to a specified range. However, if the price of the financial instrument falls below the strike level of the sold put the investor will start participating in any further price declines of the financial instrument.
A fence consists of the following elements: - long position in a financial instrument (e.g., a share, index or currency) - long put (normally with a strike price close to or at the current spot price of the financial instrument) - short put (with a strike price lower than the bought put - e.g., 80% of the current spot price) - short call (with a strike price higher than the current spot price).
identifies a party over which a guarantor has some measure of control by virtue of the guarantee
objective related to improving the sustainability profile of the business
sustainability business objective
The borrower of an SLL should clearly communicate to its lenders its sustainability objective(s) and how such objectives align with its proposed sustainability performance targets (SPTs).
specifies the quantity value that is subtracted from something
assesses the nature, quality, or ability of someone or something
preferred share that confers multiple votes per share, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic stated income and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, enhanced voting, redeemable, participating, registered share
preferred share that confers less than one vote per share, may be exchanged for securities of another issuer, provides a periodic stated income, dividends not paid in any year accumulate, and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, restricted voting, exchangeable, cumulative participating, registered share
population for which it is possible to count its units
In statistics, a population is a set of similar items or events of interest for some question or experiment. In other words, a population is the complete group of units to which survey results are to apply. (These units may be persons, animals, objects, businesses, trips, etc.). See http://www.statcan.gc.ca/edu/power-pouvoir/glossary-glossaire/5214842-eng.htm#p.
formal, written offering document to sell securities that provides the facts an investor needs to make an informed investment decision
The Securities Act of 1933, as amended 5 April 2012, see http://www.sec.gov/about/laws/sa33.pdf
Barron's Dictionary of Finance and Investment Terms, Ninth Edition, 2014.
In the United States, a prospectus may be a formal legal document, required by and filed with the Securities and Exchange Commission, if it provides details about an investment offering for sale to the public.
A prospectus may specify the facts about an offering of securities, mutual funds, or limited partnerships for investments in oil, gas, equipment leasing, or other kinds of limited partnerships.
role of person(s) or organization(s) responsible for the printing or distribution of an item, whether in digital or print (physical) form
ISO 10161-1:2014(en), Information and documentation - Open Systems Interconnection - Interlibrary Loan Application Protocol Specification - Part 1: Protocol specification
Publishers may also include banks, government agencies and the like.
warrant that gives the holder the right (but not the obligation) to buy (or sometimes sell) an underlying asset under non-standard or complex conditions, often involving additional features not found in a plain vanilla (standard) warrant
exotic warrant
Features of an exotic warrant may include (1) non-standard payoffs, such as path-dependent or condition-based payouts, (2) variations in the underlying asset(s), which may include equities, indices, currencies, interest rates, baskets of assets, etc., and (3) embedded optionality in terms of features such as barriers, lookbacks, digitals, or dual-currency terms.
Exotic warrants may be created by investment banks as part of structured products to meet specific investor needs. They are often identified with an 'X' in their English stock short name.
Diversified Community Investment Fund, available at https://www.nc3now.org/uploads/1/4/0/1/140134350/dcif_overview.pdf.
community investment fund that invests primarily in real estate but can also invest in any local business or project, and can do so with investment capital raised publicly from within the fund's own community, including community investors
diversified community investment fund
DCIF
A Diversified Community Investment Fund (DCIF) is a specialized community-scale investment vehicle structured to both support local development and comply with U.S. securities laws - particularly the Investment Company Act of 1940 (the 'ICA'). This type of fund must meet two requirements: (1) its primary business is investing in real estate, rather than securities (e.g., stock) issued by other companies; and (2) real estate and other non-securities assets must comprise at least 60% of the fund's assets. The DCIF structure is intentionally calibrated to circumvent classification as an investment company - which would trigger certain SEC registration and disclosure requirements. Under the ICA, if a fund is 'primarily engaged in ... investing ... in securities,' it must register as an investment company. By meeting the 60/40 real estate-to-business allocation, the DCIF qualifies instead as a real estate fund, avoiding that designation.
identifies the trust over which a trustee has some measure of control
specifies a date against which the value of a scoped measure is compared (e.g., one month prior, three months prior, etc., and typically against a prior release or average over prior releases)
preferred share that confers zero votes per share, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic stated income, dividends not paid in any year accumulate, and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, non-voting, redeemable, cumulative participating, registered share
preferred share that is not a participating preferred share
collar that consists of a covered call and protective put
protective collar
A protective collar consists of a long position in the underlying security, a put option purchased to hedge the downside risk on a stock, a call option written on the stock to finance the put purchase.
common share that confers multiple votes per share, is not restricted from a sales / transfer perspective, is fully paid and is registered
common, enhanced voting, unrestricted, fully-paid, registered share
a classifier that qualifies something about the reporting period specified, such as that the date period reflects an accounting or document filing period
GLEIF Level 2 Relationship Record (RR) Common Data Format (CDF), see https://www.gleif.org/en/about-lei/common-data-file-format/relationship-record-cdf-format#
negotiable commodity including offset credits
environmental resource
ISO 10962, Securities and related financial instruments - Classification of financial instruments (CFI) code, Fourth Edition, 2019-10
date and time at which a report was issued
has report date time
role of the party responsible for managing the operational, accounting, and compliance functions of an investment fund
fund administrator
A fund administrator performs administrative tasks on behalf of an investment fund, including net asset value (NAV) calculation, financial reporting, investor servicing, and regulatory compliance. The role supports operational efficiency and transparency, enabling fund managers to focus on investment strategy.
links a credit card to either: (1) magnetic-stripe data, or (2) printed security features that are used to protect data integrity and limit alteration, counterfeiting and fraud generally
party that receives some benefit or advantage or profits from something as specified in the agreement
has beneficiary
person whose age is greater than the minimum legal working age specified in a jurisdiction in which they work
preferred share that confers exactly one vote per share, has no fixed maturity date, provides a periodic stated income, and is registered
preferred, voting, perpetual, fixed income, registered share
sequence of characters that can be used to uniquely identify a nominal monetary unit
statistical universe consisting of specific goods and/or services designed for the purposes of supporting surveys such as those used as the basis for price indices
identifier that uniquely identifies a business register, such as a register identified by the Global Legal Entity Identifier Foundation (GLEIF) registration authorities list
index to a location that consists of a primary address number, predirectional, street name, suffix, postdirectional, and an optional secondary unit
investment company which (a) is organized under a trust indenture, contract of custodianship or agency, or similar instrument, (b) does not have a board of directors, and (c) issues only redeemable securities, each of which represents an undivided interest in a unit of specified securities; but does not include a voting trust
Section 4, definition of investment companies, Investment Company Act of 1940 as amended and approved as of 3 January 2012, see https://www.sec.gov/about/laws/ica40.pdf
futures contract whose underlying asset is at least one debt instrument
debt instrument future
ISO 10962, Securities and related financial instruments - Classification of financial instruments (CFI) code, Fourth Edition, October 2019
party that owns a business, has the rights to all profits from that business and is considered a single entity (unincorporated) together with that business for tax and liability purposes
A sole proprietor has unlimited liability with respect to any business debts.
retractable preferred share whose retraction value may be paid in cash or in an equal value of common stock of the issuer, at the option of the issuer
global depositary receipt that represents the purchase, or ownership, of foreign assets which are deposited in a Luxembourg-based account
Luxembourg depositary receipt
LDR
A Luxembourg Depositary Receipt (LDR) is a certificate which represents the purchase, or ownership, of foreign assets which are deposited in a Luxembourg-based account. An LDR functions in much the same way as a global depositary receipt (GDR). LDRs may represent ownership of either an underlying number of shares or a notional amount of bonds.
classifier representing the controlled vocabulary that delineates the nature of the exchange or data reporting services provider where possible
As of October 2022, the controlled vocabulary includes two codes that are not semantically useful, namely 'not specified', or NSPD, and 'other', or OTHR. These are included for the sake of completeness but ignored with respect to how the exchange or market is classified. If something has one of these two codes as a market category, they will be classified either as an operating-level or segment-level marketas appropriate with no other distinction in terms of how they are instantiated.
principal repayment terms related to payment of the loan prior to maturity
pre-payment terms
Prepayment may or may not involve refinancing with the same lender. Prepayment terms include any prepayment penalty period, penalty amount and whether or not there is provision for waiver of the penalty, and any conditions related to making additional payments or payments over and above the expected installment payment over the lifetime of the loan.
date on which a request was made
has request date
indicates the party that retains rights in the asset they own in a beneficial ownership situation
exchange, trading system, or platform that enables listing for trading futures or option contracts based on any underlying commodity, index or instrument
estimated value of some asset as of a given point in time
call option in which the seller (investor) owns an equivalent amount of the underlying security
covered call
commitment whereby something is formally assured if a party with primary liability fails to perform
The commitment may cover a debt, cash flows on a debt instrument (such as interest payments), or performance of some obligation.
cashflow expression specifying the arguments required to calculate the best projected price at which the lookback option may be exercised
floating lookback strike expression
contract that establishes a new corporation or, when amended, adjusts the legal basis for the corporation, and outlines basic information about the corporation, including the type of business, and a description of the business' operational characteristics
repayment event involving payment of a bond's principal amount at maturity or when it is called
indicates the minimum (lower boundary) of the total value of the underlying collateral, either at issuance or as of some point in time, at which point a given tranche becomes liable for losses
When it is said that a tranche becomes 'liable for losses,' it means that the tranche starts to absorb or incur financial losses due to defaults or impairments in the underlying assets. This is based on the contractual agreements and the structuring of the CDO, which dictate the order in which losses are allocated to different tranches. Note that the notion of 'liability for loss' is in a financial or econonmic sense rather than a legal sense.
an entry in the ABA IIN registry, a repository of financial institution characteristics collected by the ABA for those institutions to which they issue IINs
specifies a geographic region included in an environmental or sustainability assessment, which may cover a specific site, facility, region, or the global operations of a company or project
relates a formal organization to a direct legal person / owner
identifies the service responsible for listing the security
swap party that receives payments for a given leg of the transaction as defined in the contract
participation certificate whose payout is conditional: should the barrier never be breached, the nominal price plus coupon is paid at redemption; if the barrier is breached the product changes into a reverse convertible
Due to the barrier, the probability of maximum redemption is higher; the coupon, however, is smaller than for a reverse convertible. It has reduced risk compared to a direct investment into the underlying asset(s). With higher risk levels, multiple underlying assets (worst-of) allow for higher coupons or lower barriers; limited profit potential (Cap).
barrier reverse convertible certificate
ISO 10962, Securities and related financial instruments - Classification of financial instruments (CFI) code, Fifth edition, 2021-06-15, clause 6.4.8
credit agreement that allows the borrower to periodically take out money over an extended period of time rather than reapplying for a loan every time they need funds
credit facility
Credit facilities include revolving loans/lines of credit, committed facilities, letters of credit, and most retail credit accounts. They may define sub-facilities to which the lender is prepared to commit for specific purposes.
master commitment
bond that gives the holder the right to convert the bond into a fixed number of shares (conversion ratio) if the equity price rises above a specified level (strike price)
If the equity price remains below the strike price throughout the term of the bond it matures and is redeemed like a regular bond. The conversion ratio and strike price are usually set when the convertible bond is issued.
objective that reflects the strategic goals and direction of a business within a time frame and available resources
Business objectives allow an organization to define its goals and direction. A company uses strategy and tactics at every level of its operation to achieve its objectives. These define the way a company allocates its resources and the strengths, weaknesses and opportunities it may have. Companies usually do not alter their objectives once they are implemented, unless changes in circumstances arise. Setting a clear course for the organization is key to its success.
In general, objectives are more specific and easier to measure than goals. Objectives are basic tools that underlie all planning and strategic activities. They serve as the basis for creating policy and evaluating performance. Some examples of business objectives include minimizing expenses, expanding internationally, or making a profit.
indicates investment-based de facto control, which is is based on the holding of some investment equity by some party
the face value of currency units, coins, or securities
indicates that the entity considered the 'end node' or consolidating entity (parent) fully consolidates the accounting of the 'start node' (child) per the accounting rules specified, and is the closest consolidating entity to that child in any applicable ownership hierarchy
indicates the entity considered the 'end node' or consolidating entity (parent) from an ISO 17442 perspective
grants or bestows by virtue of some authority
This property should be read as describing the conferral of some legal power or duty, some commitment or some social construct, and is a property of some social construct such as an agreement or some legal authority. These concepts, which would describe the kind of thing of which this is a property, and the kinds of thing in terms of which this property is framed, are outside the scope of this mode land so are not shown.
judgement, appraisal, or view about something
futures contract with a money market instrument as the underlying asset
money market future
provides a formal assurance or promise, esp. that certain conditions shall be fulfilled relating to a product, service, or transaction
indicates the retrospective rate of return for a given financial instrument over some period of time
has rate of return
preferred share that confers zero votes per share, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic income whose dividend rate is adjusted through an auction, and is registered
preferred, non-voting, redeemable exchangeable, auction rate income, registered share
owner of an interest in a limited liability company
specifies the final date on which the issuer expects to make a final coupon payment
The last coupon date sometimes occurs at an irregular time; that is, if the bond pays coupons every six months, the last coupon period may be longer or shorter than six months.
degree of scatter or variability shown by observations
Common examples of measures of statistical dispersion are the variance, standard deviation, and interquartile range. The collection size argument, above, represents the number of elements in the set, if known. The collection of values under consideration is represented as a structured collection in FIBO, typically a sample set derived from a finite population.
A measure of statistical dispersion is a nonnegative real number that is zero if all the data are the same and increases as the data become more diverse.
It is usually measured as an average deviation about some central value (e.g. mean deviation, standard deviation) or by an order statistic (e.g. quartile deviation, range) but may also be a mean of deviations of values among themselves (e.g. Gini's mean difference and also standard deviation).
recurrence interval that is defined per a specific convention that determines how recurring days should be handled
bond secured by an unconditional promise to pay by another entity
Full faith and credit bonds are typically backed by a government entity and are considered low risk.
preferred share that confers less than one vote per share, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic stated income, dividends not paid in any year accumulate, and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, restricted voting, redeemable extendable, cumulative participating, registered share
credit union that has a federal affiliation
statute law
Statutes may originate with national, state legislatures or local municipalities. Statutory laws are subordinate to the higher constitutional laws of the land.
In the United States, statutes may also be called acts, such as the Civil Rights Act of 1964 or the Sarbanes-Oxley Act. Federal laws must be passed by both houses of Congress, the House of Representative and the Senate, and then usually require approval from the president before they can take effect.
return leg based strictly on the income generated by the underlying asset, excluding appreciation, decrease in value, capital gains, and fees on any increase in value
simple return leg
Payments may include interest payments on a debt instrument or the dividends on an equity, for example.
government official that is an executive, who is either appointed or elected to a high office in the government
Minister of Finance, Secretary of State, Attorney General of California
payment schedule indicating the dates on which dividends are due to be paid
subset of the population that includes people who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for work sometime in the past 12 months
legal entity created to fulfill narrow, specific, and frequently temporary objectives
fonds commun de placement
special purpose vehicle
SPV
SPE
A special purpose vehicle (SPV), also known as a special purpose entity (SPE), refers to a legal entity, typically a limited company or partnership, created to isolate a parent company from financial risk, including bankruptcy.
special purpose entity
custom basket whose constituents consist of one or more negotiable commodities
A commodity basket may contain constituents from one of the potential underlying assets or from multiple underlying assets.
preferred share that confers less than one vote per share, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic stated income, and is registered
preferred, restricted voting, redeemable, fixed income, registered share
one or more adjacent counties or county equivalents that have at least one urban core area of at least 10,000 population but less than 50,000, plus adjacent territory that has a high degree of social and economic integration with the core as measured by commuting ties
physical address that explicitly includes a country
has price (or level) that activates or deactivates the option
has first barrier price
For a double barrier option, this is the level of the first barrier. Otherwise it is the only barrier price.
preferred share that confers zero votes per share, may be exchanged for securities of another issuer, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic income whose dividend rate is adjusted through an auction, and is registered
preferred, non-voting, redeemable/exchangeable/extendable, auction rate income, registered share
state-chartered bank that is a member of the Federal Reserve System (FRS)
identifier for a swap that is used in recordkeeping and swap data reporting
CFTC Data Management Branch 'Unique Swap Identifier (USI) Data Standard', October 1, 2012, usidatastandards100112.pdf
equity swap that has at least one leg whose underlier is a dividend stream
dividend swap
Dividend swaps include those that are fixed-term contracts between two parties where one party makes an interest rate payment for each interval and the other party pays the total dividends received as pay-out by a selected underlying asset.
corporation that has shareholders, each of whom receives a portion of the ownership of the corporation through shares of stock
stock corporation
The shares in a stock corporation may receive a return on their investment in the form of dividends. Shares are used for voting on matters of corporate policy or to elect directors, at the corporation's annual meeting and at other meetings of the corporation.
equity redemption provision that allows modification of the redemption date beyond the original specified date
equity redemption provision with extendable redemption date
purchase right that gives a prospective acquiree's holders of multiple securities the right to buy securities of the firm or securities of anyone who acquires the firm at a deep discount to their fair market value
combined instruments purchase right
amortization in which the payments made do not cover the interest due
dispersion leg whose underlier is an equity index
dispersion swap index leg
preferred share that confers zero votes per share, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic stated income, and is registered
preferred, non-voting, redeemable, fixed income, registered share
non-interest-bearing deposit account in which deposits are payable immediately on demand, or that are issued with an original maturity or required notice period of less than seven days, or that represent funds for which the depository institution does not reserve the right to require at least seven days' written notice of an intended withdrawal
Demand deposits include any matured time deposits without automatic renewal provisions, unless the deposit agreement provides for the funds to be transferred at maturity to another type of account. Demand deposits do not include: (i) money market deposit accounts (MMDAs) or (ii) NOW accounts.
trading tactic involving more than one option type, strike price, or expiration date on the same underlying asset
option trading strategy
Note that some trading strategies may be considered financial instruments in their own right, but most strategies are not. The critical differentiators include whether the strategy itself can be traded, whether it has a financial instrument identifier independently from the identifier(s) of the embedded instrument(s), such as a FIGI or ISIN, and so forth.
Option trading strategies refer to buying calls or put options or selling calls or put options or both together for the purpose of limiting losses and/or optimizing profits. Basically, these strategies utilize one or more combinations for the best outcome possible based on defined parameters. Simple combinations include option spread trades such as vertical spreads, calendar (or horizontal) spreads, and diagonal spreads. More involved combinations include trades such as condor or butterfly spreads which are actually combinations of two vertical spreads.
relates a share to a dividend that applies to that share, or that the share may pay
a classifier for a sector of the economy used for price indices focused on contractors' selling prices of new residential houses, where detailed specifications pertaining to each house remain the same between two consecutive periods
sequence of characters uniquely identifying a product in some context
clearing house that helps facilitate trading in derivatives and equities markets
These clearing houses are often operated by the major banks in the country. The house's prime responsibility is to provide efficiency and stability to the financial markets that they operate in. There are two main processes that are carried out by CCPs: clearing and settlement of market transactions. Clearing relates to identifying the obligations of both parties on either side of a transaction. Settlement occurs when the final transfer of securities and funds occur. CCPs benefit both parties in a transaction because they bear most of the credit risk. If two individuals deal with one another, the buyer bears the credit risk of the seller, and vice versa. When a CCP is used the credit risk that is held against both buyer and seller is coming from the CCP, which in all likelihood is much less than in the previous situation.
mean that indicates the central tendency or typical value of a set of numbers by using the product of their values (as opposed to the arithmetic mean which uses their sum)
The geometric mean is defined as the nth root of the product of n numbers. A geometric mean is often used when comparing different items - finding a single 'figure of merit' for these items - when each item has multiple properties that have different numeric ranges. For example, the geometric mean can give a meaningful 'average' to compare two companies which are each rated at 0 to 5 for their environmental sustainability, and are rated at 0 to 100 for their financial viability. If an arithmetic mean were used instead of a geometric mean, the financial viability is given more weight because its numeric range is larger - so a small percentage change in the financial rating (e.g. going from 80 to 90) makes a much larger difference in the arithmetic mean than a large percentage change in environmental sustainability (e.g. going from 2 to 5).
indicates the date on which a security or other instrument-specific trade actually takes place
subscription right entitling existing preferred, convertible shareholders to subscribe to new securities at a price normally lower than the prevailing market price
preferred convertible share subscription right
non-physical juridical entity that is represented by one centralized government that has sovereignty over a geographic area
A legal entity that is represented by one centralized government, has a permanent population, defined territory, and the capacity to enter into relations with other sovereign states.
basket of debt instruments whose constituents are specified based on a leverage ratio based on total debt rather than only secured debt
ratio debt basket
The ratio basket provides different ratio tests depending on the type of indebtedness being incurred (for example, first lien leverage ratio in respect of first lien indebtedness, senior secured leverage ratio in respect of indebtedness secured by a junior lien and a total net leverage ratio or interest coverage ratio in respect of unsecured indebtedness). A ratio basket would typically allow the borrower to incur debt secured on a senior secured basis subject to a maximum senior secured leverage ratio and unsecured debt subject to a maximum total leverage ratio.
terms for the paydown of principal in a sinking fund type of amortizing security
At present there is only a schedule, there should be other terms for what happens on the scheduled dates. Sinking fund may be bullet e.g. x percent over year for y years. SF may be mandatory or contingent on some other economic event.
is directly, or indirectly through one or more intermediaries, controlled by
corporate action to disseminate information regarding a change further described in the corporate action details
change action
Generic changes may include a change in the terms of an issue, change in the identification of a security, change of board lot, change from global to definitive, etc.
system for allocating identifiers to birth certificates
Schemes for birth certificate identification are typically regionally defined, and there may be jurisdiction-specific scope required as an additional restriction on a specific scheme.
investment company that sells and manages a portfolio of securities other than a face-amount certificate company or unit investment fund
Management companies allow investors to pool their capital with that of other investors in order to purchase professionally-managed groups of diversified securities.
preferred share that confers zero votes per share, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic income whose dividend rate is set periodically, and is registered
preferred, non-voting, redeemable, adjustable income, registered share
trading venue that is more loosely regulated than a regulated exchange
The SEC formally defines an alternative trading system as any organization, association, person, group of persons, or systems (1) that constitutes, maintains, or provides a market place or facilities for bringing together purchasers and sellers of securities or for otherwise performing with respect to securities the functions commonly performed by a stock exchange within the meaning of Rule 3b-16 under the Exchange Act; and (2) that does not (i) set rules governing the conduct of subscribers other than the conduct of such subscribers' trading on such organization, association, person, group of persons, or system, or (ii) discipline subscribers other than by exclusion from trading.
clearing house that enables parties to substitute the credit of the DCO for the credit of the parties
For options, the derivatives clearing organization is responsible for clearing transactions for put and call options on common stocks and other equity issues, stock indexes, foreign currencies, interest rate composites and single-stock futures.
Substitution may be done through contract novation, for example. A derivatives clearing organization (DCO) also arranges or provides, on a multilateral basis, for the settlement or netting of obligations, or otherwise provides clearing services or arrangements that mutualize or transfer credit risk among participants.
indicates the date on which a security is subject to redemption by the bond holder
classifier used to indicate a category used to modularize something based on principles of the model driven architecture methodology (MDA), including but not limited to separation of concerns, coherence, and establishing clear logical boundaries in order to increase reusability and maintainability
A module should be designed to reflect these principles, including a small number of models that have well-defined relationships with one another, that form a coherent and cohesive whole for some purpose, and that have clear boundaries or interfaces to other modules.
contract where multiple parties (i.e., more than two) commit to perform specific actions or obligations towards each other
tradeable debt instrument that provide their owners with a rate of return that is dynamic and determined by market forces
Variable-income securities provide investors with both greater risks as well as rewards.
a research and development phase of a product lifecycle, the introduction phase in a marketing lifecycle, a growth stage in an economic lifecycle, or the origination phase in the lifecycle of a loan
an economic indicator representing a measure of the change over time in the selling prices received by domestic producers for their output
exchange that enables participants to execute and trade swaps
Swap execution facilities, including trading systems and other platforms, allow for greater transparency and represent a significant shift in the way derivative trading has been done. The Dodd-Frank Act lays the foundation for this change of derivative execution.
the date from which interest begins to accrue
warrant that permits the holder to acquire a specified amount based on the performance of an index during a specified period at a specified price
index warrant
indicates the reason that an entity ceased to exist (i.e., disolved, merged with another entity, etc.)
certificate whose underlying asset is an index
index certificate
Investors should think about currency risks when investing in index certificates that track a share index outside of the euro zone. And they should pay attention to whether the underlying index is a performance or price index. With a performance index, all dividends and profits from subscription rights flow into the index value. In contrast to that, price indices show the pure development of the shares and thus the price declines that usually accompany dividend payouts. Index certificates are particularly interesting to investors that want to profit from positive capital-market developments, but who don’t want to deal with the daily price developments of several individual shares.
With Index certificates investors can participate one-to-one in the development of an exchange index – without actually buying the underlying shares in that comprise that index. Every index certificate has a subscription rate (e.g., 1:10 or 1:100) that defines the value of the certificate in relation to the index listing. The investor invests broadly diversified and transparently with minimal effort and smaller amounts.
If the underlying share increases in value, the value of the certificate increases in analog to the gain; with every setback, the certificate value declines accordingly.
preferred share whose dividend rate is periodically reset through an auction, such as a Dutch auction
preferred share with auction rate dividend
formula for determining cashflows for a derivative instrument
single constituent of a basket of indices
preferred share that confers less than one vote per share, may be redeemed at the option of the issuer and/or of the shareholder with an extendable redemption date, provides the same dividends as common/ordinary shareholders, and is registered
preferred, restricted voting, extendable, normal income, registered share
survey conducted on a regular basis that presents analytical information related to the labor force of a given statistical area, surveyed with respect to businesses, and is, for the most part, seasonally adjusted
employment situation establishment survey
U.S. Bureau of Labor Statistics and Statistics Canada reference definitions - https://wiki.edmcouncil.org/pages/viewpage.action?pageId=6358041
indicates a party that owns a formal organization
agreement to deliver and settle a given amount of money in one currency, in exchange for a given amount in another currency, at an agreed date in the future and at an agreed rate of exchange
currency forward
foreign exchange forward
FX forward
party that benefits from the collateral or guarantee established under the agreement, i.e., that is protected against counterparty credit risk because the collateral or guarantee serves as security for the obligation(s) owed to them
credit enhancement beneficiary
written contract that gives rise to both a financial asset of one entity and a financial liability of another entity
Examples of financial instruments include: cash, evidence of an ownership interest in an entity, or a contractual right to receive (or deliver) cash, or another financial instrument.
A financial instrument can be thought of as a template that defines an arrangement structure that remains to be fleshed out with terms and parameters in order to establish a specific instance of the contract.
specifies the last date and time that the security was traded on the exchange
something over which some party exercises some form of control with respect to some situation
weighted-average gross interest rates of the pool of mortgages that underlie a mortgage-backed security (MBS) weighed by their balances at the time the securities were issued
Provided by the Issuer (loan servicer?) along with the WALA etc. If you know the underlying loans you can calculate this yourself. For ABS you don't know this so you have to get this information from the loan servicer. Investopedia explains Weighted Average Coupon - WAC For example, suppose a MBS is composed of two different pools of mortgages: $6 million worth of mortgages that yield 7.5% and a pool of $4 million mortgages that yield 5%. The WAC would be 6.5%. The WAC on a mortgage-backed security is an important piece of information used by analysts to estimate the pre-pay characteristics of that security. It is an important relative value tool in MBS portfolio management and analysis.
weighted average coupon
WAC
The weighted average coupon (WAC) is calculated by taking the gross of the interest rates owed on the underlying mortgages of the MBS and weighting them according to the percentage of the security that each mortgage represents. The WAC represents the average interest rate of different pools of mortgages with varying interest rates. In the weighted average calculation, the principal balance of each underlying mortgage is used as the weighting factor. To calculate the WAC, the coupon rate of each mortgage or MBS is multiplied by its remaining principal balance. The results are added together, and the sum total is divided by the remaining balance. A mortgage-backed security's current WAC can differ from its original WAC as the underlying mortgages pay down at different speeds. In the weighted-average calculation, the principal balance of each underlying mortgage is used as the weighting factor.
classifier for the network that authorizes, processes, and sets the terms of credit card transactions, as well as transfers payments between shoppers, merchants, and their banks
Mastercard, Visa, American Express, Discover
party engaged in the purchase and sales of goods produced by others for profit
concept scheme for concepts derived from ontology classes
FIBO classes scheme
subset of the employed population that includes persons employed part-time for economic reasons, who want and are available for full-time work but have had to settle for a part-time schedule
credit facility that is a confirmed source of financing for the borrower, as long as the borrower meets the conditions of the agreement
committed credit facility
median of the absolute deviations of observations from the average which may be the arithmetic mean, the median or the mode
subscription right entitling existing bond holders to subscribe to new securities at a price normally lower than the prevailing market price
bond subscription right
certificate whose minimum redemption is equal to the nominal value provided the barrier has not been breached, with a greater risk in relation to multiple underlying asset(s) (worst-of), allowing for a higher bonus level or lower barrier, and with a reduced risk compared to a direct investment into the underlying asset(s)
For example: You buy a bonus certificate based on a stock. The price of the stock at the time that you get the certificate is 100 Euros. The bonus level is 120 Euros, and the protection threshold is 80 Euros. Over the two-year term, the price of the stock fluctuates between 90 and 110 Euros. When the certificate matures at the end of the term, you receive the bonus price of 120 Euros.
If the barrier is breached the product becomes a tracker certificate.
bonus certificate
ISO 10962, Securities and related financial instruments - Classification of financial instruments (CFI) code, Fifth edition, 2021-06-15, clause 6.2.8
Bonus certificates have a risk buffer for price losses in the underlying; the bonus guarantees a minimum return above the risk level. A bonus certificate represents an alternative to a direct investment in a share or an index. Investors primarily use them if they believe that despite rising prices setbacks are still likely to occur. A bonus certificate is furnished with a bonus amount and an upper and lower price level. If the certificate expires with the price of the underlying ranging between these two levels, owners are paid out their bonuses. If the underlying was at or below the risk level during the certificate's lifetime, its price is that of the current value of the certificate at expiry. If the underlying is above the upper level at expiry, the investor fully participates in the price gains. Some bonus certificates have a profit cap. This is where the certificate stops participating in the price gains of the underlying. A bonus certificate is issued at the current price of the underlying. The upper level is derived from adding the bonus to the issue price. The lower level is determined at issuance and usually expressed in percent.
formal organization that is an independent agency, instrumentality or other permanent or semi-permanent organization in the machinery of government of any one of the states or territories of the United States
security identification scheme published by a commercial entity
proprietary security identification scheme
Proprietary schemes may be unique to an exchange or data provider, for example.
indicates the length of time for which a given rate, such as an interbank rate, exchange rate, other market rate is quoted, or a debt instrument has remaining prior to maturity or expiration
The tenor of most financial instruments declines over time, while the maturity remains constant. Risk associated with a given asset tends to decline with the reduction of the time remaining to maturity. The tenor of an interest rate swap can also refer to the frequency with which coupon payments are exchanged.
price a prospective buyer is willing to pay
bid price
The term 'bid price' is used by traders / market makers with respect to a given security, and that are prepared to buy or sell round lots at publicly quoted prices, and by specialists in certain instruments that perform similar functions on an exchange.
specifies the last coupon payment prior to maturity
This is important since the securities processing area needs to start its procedures in anticipation of maturity. For zero coupon bonds, it is the last compounding date prior to maturity.
financial institution (typically a commercial or investment bank) responsible for coordinating the arrangement, structuring, and marketing of the loan to potential lenders
bookrunner
A 'bookrunner' is primarily responsible for managing the distribution and sale of a security during a new issuance, while a 'lead arranger' is the primary bank that structures and leads a syndicated loan, often assigning portions of the loan to other banks to participate in the deal; essentially, the bookrunner focuses on selling the security to investors, while the lead arranger focuses on structuring the loan itself and coordinating the syndicate of lenders involved.
call triggered by some regulation-specific rule
specifies a period (typically a prior period) against which the scoped measure is compared, such as an average set of values for some period of time compared with a more recent or projected average for a forward looking period of time
preferred share that confers zero votes per share, may be exchanged for securities of another issuer, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic stated income and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, non-voting, redeemable exchangeable, participating, registered share
average price at which a given security has traded throughout a trading day, determined by multiplying each trade by its volume, adding the results, then dividing by the volume traded for the day
volume-weighted average price
VWAP
credit facility that is a loan or line of credit used by retailers and real estate companies
Most consumer credit cards are retail credit facilities, for example.
retail credit facility
indicates the context of ownership in which something is an asset
written communication from a seller or service provider reciting the relevant details of a transaction
something of monetary value that is owned or provides benefit to some party
Financial Accounting Standards Board (FASB) Statement of Financial Accounting Concepts No. 6, Elements of Financial Statements, paragraph 25.
An asset is something that provides probable future economic benefit obtained or controlled by some party as a result of past transactions or events. An asset has three essential characteristics: (a) it embodies a probable future benefit that involves a capacity, singly or in combination with other assets, to contribute directly or indirectly to future net cash inflows, (b) a party can obtain the benefit and control others' access to it, and (c) the transaction or other event giving rise to the party's right to or control of the benefit has already occurred.
facility used for reporting over-the-counter (OTC) and other direct trades that are not executed by the exchange but are reported through the exchange
expression or function that determines the relative importance or influence of a given element of a set with respect to the whole
Given a sample size of 1000, and a population of 300M, then the chance that any individual is selected is 1 in 300K. In that case, 300K is the weight assigned to each of the elements in the sample.
For certain indices, one of the most common weighting factor is by market capitalization. In that case, each of the elements in the basket is multiplied by its market cap to determine its relative importance to the basket overall.
With respect to discrete calculations, weighting functions are positive functions defined on discrete sets, such as weighted sums and weighted averages.
indicates the monetary amount representing the market capitalization of some issuer as of some date
has market capitalization value
registered agent who, in accordance with the rules of an exchange, may trade on or through the exchange and whose name is entered in a list, register or roll kept by the exchange as an agent who may trade on or through the exchange
preferred share that confers exactly one vote per share, has no fixed maturity date, provides a periodic stated income, dividends not paid in any year accumulate, and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, voting, perpetual, cumulative participating, registered share
indicates a formal organization, including potentially a sole proprietorship, that is owned by a legal person
indicates the date on which the holder of the chooser option contract determines a choice of either a call or a put
has option type election date
a party to whom a license has been granted
periodic summary of account activity for a given period of time
Common kinds of account statements include checking account statements, usually provided monthly, and brokerage account statements, which are provided monthly or quarterly, depending on the terms of the account agreement. Monthly credit card bills are also considered account statements.
contract between the principals in a formal organization that specifies the relationship between the principals, and between the principals and the entity
Also covers the aims and purposes of the Entity.
credit default swap in which an additional triggering event is required
contingent credit default swap
CCDS
In a contingent credit default swap, the trigger requires both a credit event (as in a traditional credit default swap) and another specified event. The additional specified event is usually a significant movement in an index covering equities, commodities, interest rates, or some other overall measure of the economy or relevant industry.
restriction that limits trading in some manner, typically summarized on term sheets or in other documentation, including but not limited to restrictions on day trading
debt pool of loans and/or leases that are motor vehicle-related
auto debt pool
Consolidated Reports of Condition and Income for a Bank with Domestic and Foreign Offices - FFIEC 031; Board of Governors of the Federal Reserve System OMB Number 7100-0036, Federal Deposit Insurance Corporation OMB Number 3064-0052, Office of the Comptroller of the Currency OMB Number 1557-0081, dated 20240930
Instructions for the Preparation of Consolidated Reports of Condition and Income, FFIEC 031 and FFIEC 041, Updated March 2023, clause A-91
loan that, at origination, is secured wholly or substantially by a lien or liens on real property for which the lien or liens are central to the extension of the credit - that is, the borrower would not have been extended credit in the same amount or on terms as favorable without the lien or liens on real property
Examples include (a) Construction, land development, and other land loans: (1) 1-4 family residential construction loans, and (2) Other construction loans and all land development and other land loans; (b) Secured by farmland (including farm residential and other improvements); (c) Secured by 1-4 family residential properties: (1) Revolving, open-end loans secured by 1-4 family residential properties and extended under lines of credit, and (2) Closed-end loans secured by 1-4 family residential properties including those secured by first liens and those secured by junior liens; (d) Secured by multifamily (5 or more) residential properties; and (e) Secured by nonfarm nonresidential properties: (1) Loans secured by owner-occupied nonfarm nonresidential, and (2) Loans secured by other nonfarm nonresidential properties.
The borrower agrees to pay the lender over time, typically in a series of regular payments divided into principal and interest. The property then serves as collateral to secure the loan.
In general parlance, loans secured by real estate are often called mortgages or mortgage loans. This usage conflates a number of related concepts, which would limit the usability of FIBO for financial institutions and regulators with respect to such loans. As described herein, many different kinds of loans can be secured by real estate, including various commercial, construction, agricultural, and consumer loans.
In the US, to be considered wholly or substantially secured by a lien or liens on real property, the estimated value of the real estate collateral at origination (after deducting any more senior liens held by others) must be greater than 50 percent of the principal amount of the loan at origination.
mini-future certificate that entitles the holder to acquire cash in exchange for specific underlying assets
short mini-future certificate
identifier that uniquely identifies an individual account at a specific financial institution in a particular country and which includes a bank identifier of the financial institution servicing that account
ISO 13616-1:2007 Financial services - International bank account number (IBAN)
basket of securities whose constituents are debt instruments
basket of debt instruments
controlled party in an affiliation situation
preferred share that confers less than one vote per share, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic stated income, and is registered
preferred, restricted voting, redeemable extendable, fixed income, registered share
identifier associated with a vital record documenting the birth of a child
system for indexing values, data, information, or knowledge
regular, contract-specific schedule including the dates on which interest is calculated
The dates may be fixed, or relative to the corresponding interest payment date. It may be the same as the payment date, in arrears, or forward looking to the next interest payment.
formal, legally binding agreement between members of the Board of Directors of the organization
preferred share that confers less than one vote per share, may be redeemed at the option of the issuer and/or of the shareholder with an extendable redemption date, provides a periodic stated income, and is registered
preferred, restricted voting, extendable, fixed income, registered share
share that has no voting right
non-voting share
a provision of a put feature defining notification requirements
purchase right that gives a prospective acquiree's preferred, convertible shareholders the right to buy preferred, convertible shares of the firm or preferred, convertible shares of anyone who acquires the firm at a deep discount to their fair market value
preferred convertible share purchase right
The balance is the net amount after factoring in all debits and credits, including service charges and fees.
preferred share that confers multiple votes per share, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic income whose dividend rate is set periodically, and is registered
preferred, enhanced voting, redeemable, adjustable income, registered share
contractual element that specifies the meaning of a term in a legal document, whose definition is substitutable for the term whenever it occurs in the body of that document
relates an appraised value to the asset of interest as of the date of the assessment
registered security listed on at least one exchange
One can, as appropriate, multiply classify a share as being a common share and listed share, and, in the case whereby multiple securities are issued in different currencies (i.e., there are multiple listed shares corresponding to a given common share that have different identifiers, including more than one ISIN, CUSIP, share class FIGI), multiply classify the listed share individuals as individuals of the same common share.
card issued by a financial service provider that enables the cardholder to borrow funds
Issuance of credit cards has the condition that the cardholder will pay back the original, borrowed amount plus any additional agreed-upon charges. The credit company provider may also grant a line of credit (LOC) to the cardholder which allows the holder to borrow money in the form of a cash advance. The issuer pre-sets borrowing limits which have a basis on the individual's credit rating.
In physical form, a credit card traditionally is a thin, rectangular plastic card. The front of the card contains a series of numbers that are representative of various items such as the applicable network, bank, and account.
In its non-physical form, a credit card represents a payment mechanism which facilitates both consumer and commercial business transactions, including purchases and cash advances. A credit card generally operates as a substitute for cash or a check and most often provides an unsecured revolving line of credit. The borrower is required to pay at least part of the card's outstanding balance each billing cycle, depending on the terms as set forth in the cardholder agreement. As the debt reduces, the available credit increases for accounts in good standing. These complex financial arrangements have ever-shifting terms and prices. A charge card differs from a credit card in that the charge card must be paid in full each month.
trading date rule defined as the last trading day of an Australian Stock Exchange (ASX) 90-Day Bank Accepted Futures and Options product, one Sydney business day preceding the second Friday of the relevant settlement month
International Money Market (IMM) Australian Dollar (AUD) trading date rule
party that proposes to make something available to someone (i.e., an offeree) based on the terms of the offering
preferred share that confers zero votes per share, may be redeemed at the option of the issuer and/or of the shareholder with an extendable redemption date, provides a periodic stated income, and is registered
preferred, non-voting, extendable, fixed income, registered share
security representing a tradable interest in a fund
tradable fund unit
Tradable fund units typically occur in collective investment schemes such as mutual funds or exchange-traded funds (ETFs), where units are bought and sold on regulated markets.
medium term coupon bearing treasury obligation with original maturity ranging from two to ten years
is the relationship between an event (the effect) and a second event (the cause), where the first event is understood as a consequence of the second; also, the relationship between a set of factors (causes) and a phenomenon (the effect)
derivative instrument whose primary underlying item is a physical commodity, or the price, or related index, or any other aspect related to a physical commodity
The price of any commodity used as the basis for a commodity derivative may vary according to supply and demand as of the execution date of the contract and at various other times during the lifetime of the contract depending on contract terms. Valuation of a commodity derivative may depend on the spot price for the underlying commodity, futures price, supply and demand, convenience yield, cost of money and/or interest rates, volatility, which models were used to predict future pricing, and so forth.
preferred share that confers less than one vote per share, may be redeemed at the option of the issuer and/or of the shareholder with an extendable redemption date, provides a periodic income whose dividend rate is adjusted through an auction, and is registered
preferred, restricted voting, extendable, auction rate income, registered share
classifier indicating the nature of the applicant's or borrower's ownership or leasehold interest in an asset used as collateral for the loan
Note that there are a number of variations for ownership interest that represent 'corner cases', including jurisdiction-specific variants, which can be added as needed for specific applications.
neutral option trading strategy that involves simultaneously buying both a put option and a call option for the underlying security with the same strike price and the same expiration date
straddle
The strategy is profitable only when the value of the underlier varies (rises or falls) from the strike price by more than the total premium paid.
indicates that a given share (share class) has higher seniority than the related share, meaning that it gives the holder a higher claim on the assets of the issuer
commercial bank whose charter is approved by a state banking regulator
State-chartered banks may or may not be members of the Federal Reserve System, but typically belong to the Federal Deposit Insurance Corporation, who may be their primary federal regulator for those that are not FRS members.
A state bank is defined as any bank, banking association, trust company, savings bank, industrial bank (or similar depository institution operating substantially in the same manner as an industrial bank), or other banking institution which is engaged in the business of receiving deposits other than trust funds, and in the US, is incorporated under the laws of any State or which is operating under the Code of Law for the District of Columbia, including any cooperative bank or other unincorporated bank the deposits of which were insured by the Federal Deposit Insurance Corporation on the day before the date of the enactment of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.
method used to determine the present or expected worth of an asset
valuation method
Asset valuation is the process of determining the fair market or present value of assets, using book values, absolute valuation models like discounted cash flow analysis, option pricing models or comparables. Such assets include investments in marketable securities such as stocks, bonds and options; tangible assets like buildings and equipment; or intangible assets such as brands, patents and trademarks.
indicates the specific terms related to any inherent put feature as specified in the offering/instrument
sub-facility that has yet to be confirmed as a source of financing for the borrower
uncommitted sub-facility
set of basic principles by which an organization is governed, especially in relation to the rights of the people it governs
A constitution is an aggregate of fundamental principles or established precedents that constitute the legal basis of a polity, organisation or other type of entity and commonly determine how that entity is to be governed.
financial service provider that is exchange affiliated and provides clearing services, including the validation, delivery, and settlement of financial transactions, for financial intermediaries
party that has purchased from an issuer with a view to, or sells for an issuer in connection with, the distribution of any security, or participates or has a direct or indirect participation in any such undertaking, or participates or has a participation in the direct or indirect underwriting of any such undertaking
Section 3a of the Investment Company Act of 1940 as amended in January, 2012, https://www.sec.gov/about/laws/ica40.pdf
credit agreement in which the loan principal cannot be increased after funds are dispersed in full when the loan closes
The loan may require regular payments that pay down principal periodically, or it may require the full payment of principal at maturity.
financial intermediary in the business of making loans that obtains its financing from banks, institutions, and other money market sources rather than from deposits
Typically, the option writer collects the premium when the option is initially sold.
relates something, such as an agreement, or debt instrument, to the upper bound (ceiling) rate (typically annual) of interest on variable-rate debt that is to be paid by the debtor to the creditor on the debt
something that can be assigned a value in the marketplace that forms the basis for a derivative or pool-backed instrument
Underlier means any rate (including interest and foreign exchange rates), currency, commodity, security, instrument of indebtedness, index, quantitative measure, occurrence or non-occurrence of an event, or other financial or economic interest, or property of any kind, or any interest therein or based on the value thereof, in or by reference to which any payment or delivery under a transaction is to be made or determined.
grade, classification, or ranking of for something in accordance with some rating scale
The meaning and methodology for determining a rating score for the rating of something is determined by a rating issuer. A given rating may apply at some point in time, as a part of a lifecycle or process, or generally. Typically ratings reflect an assessment of a state of affairs at some point in time.
indicates the specific terms related to any inherent call feature as specified in the offering/instrument
terms setting out a cashflow structure of payments committed to by one party to a contract
Swap cashflows are known as Swapstreams and are the terms for payment to and from either party. These are defined in swap transaction messages and represent the terms of the contract implied by that transaction. Options (Nordea reviews): Cashflows are defined as Payouts. This is not the same as a model of a cashflow which is a consequence of applying some legal term for payment of interest or principal, but is a commitment expressed in purely cashflow terms. Review this though. Payout terms include: Values - values can only go up or down; Static values are defined for limits and the like. i.e. Constraints (and direction) - this covers caps and floors - these are read upward or downward Conditionality Formula relations (Input and Output): - these are values - these may have a cap or a floor on them also - these also may have Multiplication - there is also fixed margin - may have addition or substraction between these Linearity in covered in the above Timing / expiry Observaton (not terms): Probability Sensitivity
indicates the currency used in averaging calculation
uses currency in averaging
relates a controlled party to a controlling member of the organization
nine-character alphanumeric number that identifies all North American stocks and registered bonds for the purposes of facilitating clearing and settlement of trades, issued by CUSIP Global Services on behalf of the American Bankers' Association, which is a part of Standard and Poor's Capital IQ, that is the National Numbering Agency Identifier for securities issued in North America, which is also part of the ISIN for the security it identifies
Committee on Uniform Securities Identification Procedures (CUSIP) number
convention used to determine how the partial call will be actioned with respect to bond selection
partial redemption allocation convention
indicates a strategy by which the official closing price is determined
has closing price determination method
This method itself changes quite frequently i.e. the exchange may change the way it computes closing prices.
card account that is represented by a one or more debit cards
report that includes an opinion, judgement, appraisal, or view about something and typically the methodology and raw inputs used to arrive at that opinion
contractually committed portion of a credit facility that is available to the borrower and may be associated with some specific collateral
committed sub-facility
capital contributed in excess of the par value (stated value) of the ownership interest issued
the date on which the first payment against the principal is due
common share that confers less than one vote per share, is unrestricted from a sales / transfer perspective, is partially paid and is registered
common, restricted voting, unrestricted, partly paid, registered share
debt security issued by a government to fund government spending
loan secured by real estate with no ability for the borrower to receive additional funds under the loan at a later date
MISMO Business Glossary, available at https://www.mismo.org/standards-resources/business-glossary/
approach used for buying and selling in the securities markets
A trading strategy is a plan whose aim is to make a profit or hedge against risk, based on rules and other criteria used when making trading decisions. A trading strategy may be simple or complex, and involve considerations such as investment style (e.g., value vs. growth), market cap, technical indicators, fundamental analysis, industry sector, level of portfolio diversification, time horizon or holding period, risk tolerance, leverage, tax considerations, and so on.
ratio of a quantity index of value added to a quantity index of combined labor and capital input
capital-labor multifactor productivity (MFP), based on value added
Capital-labour MFP indices show the time profile of how productively combined labour and capital inputs are used to generate value added. Conceptually, capital-labour productivity is not, in general, an accurate measure of technical change. It is, however, an indicator of an industry's capacity to contribute to economy-wide growth of income per unit of primary input. In practice, the measure reflects the combined effects of disembodied technical change, economies of scale, efficiency change, variations in capacity utilisation and measurement errors.
warrant that permits the holder to acquire a specified amount of a debt instrument or related debt observable a specified period at a specified price
debt warrant
relates an individual or organization to a position, role, or other designation
issuer for which ratings are produced or posted through
framework, including policies, methods, rules, and processes, used to measure, recognize, present, and disclose the information appearing in an entity's financial statements, and, from a legal ownership perspective, that is applied for accounting consolidation determination
exercise terms that stipulate that an option may be exercised on or before the date of expiration
American exercise terms
Under certain circumstances, early exercise may be advantageous to the option holder.
indicates a venture capital firm, a buyout firm, or a holding company that is a financial sponsor (i.e. investor in) of the party
contract between whose individual rights and obligations are not transferable to another party without prior written permission
national or regional financial institution designed to provide medium- and long-term capital for productive investment, often accompanied by technical assistance, in poor countries
a firm dealing for its own account on markets in financial futures or options or other derivatives and on cash markets for the sole purpose of hedging positions on derivatives markets, or dealing for the accounts of other members of those markets and being guaranteed by clearing members of the same markets, where responsibility for ensuring the performance of contracts entered into by such a firm is assumed by clearing members of the same markets
scheduled date for the first regular coupon payment, in a regular repeating series of coupon periods, after any non standard (long or short) first coupon period in the schedule
warrant that is listed on an exchange, offering investors a way to participate in the price performance of an underlying asset without buying it directly
structured warrant
When structured warrants are exercised, they are typically cash-settled and do not lead to the creation of new shares, thus avoiding dilution of existing shareholders. This is in contrast with company-issued stock options, which can potentially lead to the issuance of new shares, which might dilute the value for existing shareholders.
Unlike company-issued warrants, which are tied to corporate fundraising, structured warrants are issued by third-party financial institutions such as investment banks or brokers. They can be based on a variety of underlying assets, including individual company shares, a basket of shares, or an index.
party that engages in the transfer of financial assets in any financial market on behalf of a client or the financial services provider
schedule of events, including but not limited to anticipated payment events, rate reset events and others that are expected to occur over the lifetime of the contract
A projected schedule is a regular schedule that documents the anchor dates and frequency of occurrences, using rules, rather than providing an explicit list of dates. This method will project future event dates (transaction event dates), based on the frequencies specified and may be adjusted due to calendar restrictions and other rules to deal with holidays, weekends, and so forth in addition to contract-specific events.
warrant that gives the holder the right, but not the obligation, to buy (call warrant) or to sell (put warrant) an underlying asset at a specified price (the strike or exercise price) by a predetermined date, issued without an accompanying security by a third party that does not hold as many securities as would be required if all the warrants are exercised
naked warrant
record of transactions associated with an account
The date a particular transaction record is closed typically corresponds to (and may precede) the date the account is closed, though in the case of certain accounts, such as a credit card account, if a customer is issued a new account or card number due to loss, fraud, or for some other reason, it is possible that multiple transaction records would be associated with the account. In that case, the close date might correspond to the date that a hold was placed on the original account.
non-depository institution whose primary and predominant business activity is the writing of insurance or the reinsuring of risks underwritten by insurance companies, and that provides compensation based on the happening of at least one contingency
In the US, insurance companies are subject to supervision by the insurance commissioner or a similar official or agency of a State; or any receiver or similar official or any liquidating agent for such a company, in his capacity as such. Common forms of insurance include life, property and casualty, and health insurance. In addition to insuring against hazards, many insurance companies also sell investments or investment-like products. The most prevalent investment products offered by insurers are annuities and life insurance policies that also feature investment elements. A number of insurance companies operate brokerage arms that trade securities on behalf of clients.
preferred share that confers multiple votes per share, may be exchanged for securities of another issuer, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic income whose dividend rate is adjusted through an auction, and is registered
preferred, enhanced voting, redeemable/exchangeable/extendable, auction rate income, registered share
delivery of money in fulfillment of an obligation, such as to satisfy a claim or debt
scheduled date of the last regular coupon payment, that is the last of the payments that are made according to a regular repeating series of coupon periods, before any non-standard (long or short) final coupon period in the schedule
a classifier for a legal entity that indicates the nature of that entity as defined from a legal or regulatory perspective, in the jurisdiction in which it was established
structured collection of rates, such as interest rates, or bond yields with different terms to maturity, such that a yield curve may be constructed for the structure
Term structure refers to a set of discrete points; elements are ordered by time. Restrictions on the rate (see above) and a point in time, paired together, and then ordered in a structured collection is how this should ultimately be modeled. Then the concept of yield curve would be a child of term structure, for calculation of net present value, for example. Term structures consist of two or more observed or projected values, typically related to debt instruments or interest rates. assessment of monetary policy conditions, and so forth.
preferred share that confers exactly one vote per share, may be exchanged for securities of another issuer, whose issuer and/or shareholders have the option to extend the maturity date, that provides the same dividends as common/ordinary shareholders, and is registered
preferred, voting, redeemable/exchangeable/extendable, normal income, registered share
An account holder is named on the account and is authorized to conduct transactions associated with the account. Authorization is typically evidenced by signatures maintained on file by the account provider.
Note that this concept of account holder applies to internal accounts that are non-general ledger accounts also have account holders, such as payroll accounts, internal checking accounts associated with cashier's checks, and so forth.
identifies the dealer responsible for reselling to investors securities (such as variable rate demand obligations and other tender option bonds) that have been tendered for purchase by their owner.
identification number used by the Internal Revenue Service (IRS) in the administration of tax laws in the United States
A TIN must be furnished on returns, statements, and other tax related documents. For example a number must be furnished: - When filing tax returns. - When claiming treaty benefits. A TIN must be on a withholding certificate if the beneficial owner is claiming any of the following: - Tax treaty benefits (other than for income from marketable securities) - Exemption for effectively connected income - Exemption for certain annuities.
identifies a party to a contract, typically not the contract principal
union of states under a central government distinct from the individual governments of the separate states
A federation is a political entity characterized by a union of partially self-governing states or regions under a central (federal) government. In a federation, the self-governing status of the component states, as well as the division of power between them and the central government, are typically constitutionally entrenched and may not be altered by a unilateral decision of either party, the states or the federal political body.
dividend that is paid to shareholders on a one-time basis
Special dividends may be included in a dividend schedule as an ad-hoc entry, since they still need to be tracked based on the date of issuance.
indicates the price associated with an offering, which may be an explicit or calculated price
controls directly, or indirectly through one or more intermediaries
specifies a commitment or obligation that an independent party has
date period over which the sum of all qualifying dividends paid by the relevant issuers as identified in the swap terms is calculated
qualifying dividend period
specifies a unit of currency representing R units of the dealt currency, where R is the exchange rate value, in an exchange rate
contract in which contract holder (assignor) may transfer some or all of their rights and obligations to another party (assignee)
Many, though not all, futures contracts are assignable. This means that the original contract holder can sell the contract to another party in return for cash, and that party then assumes the rights, responsibilities, and benefits of that contract from that point onwards.
Note that while the assignor may divest themselves of some rights, that assignment does not necessarily eliminate performance obligations of the assignor to the third party. Characteristics that are important to understand with respect to an assignment include the circumstances in which the assignor remains obligated and any remedies available if the assignor does not perform.
concatenation of an entity's business number, the 'RT' abbreviation and a 4-digit subaccount number used for reporting GST/HST
Goods and Services Tax / Harmonized Sales Tax registration number
An organization may have more than one GST/HST account through its subunits, this is handled through additional 4-digit subaccount numbers. This is used as both an account and an identifier for the registration.
code element that gives directional information for postal delivery
In the United States, these include N, S, E, W, NE, NW, SE, SW.
permanent or semi-permanent organization, often an appointed commission, in the machinery of government that is responsible for the oversight and administration of specific functions
There is a notable variety of agency types. Although usage differs, a government agency is normally distinct both from a department or ministry, and other types of public body established by government. The functions of an agency are normally executive in character, since different types of organizations (such as commissions) are most often constituted in an advisory role; this distinction is often blurred in practice however.
relates a guaranty to some relative ranking that the guaranty has in the context of the contract, for example for a credit enhancement priority
commercially distributed good that is (1) tangible property, (2) the output or result of a fabrication, manufacturing, or production process, or (3) something that passes through a distribution channel before being consumed or used.
Financial products include contracts that are developed via a financial service-specific process, such as a life insurance policy, demand deposit account or financial instrument, for example. Leases and rentals are similar in that they are initiated via some contractual development process, wherein the product is the right to use something for some period of time.
financial services provider that provides services for crypto assets that enable the control of crypto assets, and participate in, or provide, financial services for issuers' offers, or sale, of crypto assets
Services related to crypto assets may include businesses that exchange crypto assets for fiat currencies, or vice versa, that conduct transactions that move crypto assets from one crypto asset address, or account, to another, and/or that provide facilities for the safekeeping, or administration, of crypto assets, or instruments.
indicates the status of the entity (i.e., active, inactive)
an official document which states that a person may operate a motorized vehicle, such as a motorcycle, car, truck or a bus, on a public roadway or provides official identifying information for a non-driver
price for one share of a given security at some point in time
event involving the evaluation or estimation of the nature, quality, or ability of someone or something
identifies the main or principal party to a contract
identifier issued to a depository institution by the FDIC on approval of that institution's application for insurance
approach distinguished by systematic, repeatable procedures and operational specificity for doing or calculating something, consisting of defined steps or rules to achieve a result
coding scheme used to define a set of codes for municipalities or business centers
specifies a fixed reference point within a series or timeline
With respect to a scoped measure, such as an economic indicator, the anchor date specifies the reference date against which the value of a numeric index for a more recent date is compared (i.e., the starting point from which it stems).
delivery address whose delivery address line uses the abbreviation 'RR', followed by the route identifier, followed by 'BOX' followed by box number, in place of a street address
subscription right entitling existing common shareholders to subscribe to new securities at a price normally lower than the prevailing market price
common share subscription right
corporate action indicating a modification of the legal form of the organization
In the United States it is common for companies established as Subchapter S Corporations (S-Corp), typically early stage companies, to modify their structure to become full-fledged Subchapter C Corporations (C-Corp) to facilitate outside fundraising, mergers, acquisitions, and public offerings. Other common form changes include migration from sole proprietorships to more formally registered organizations (e.g., LLC, S-Corp, C-Corp, etc.)
legal form change
party that establishes a trust and places property under the protection and management of one or more trustees for the benefit of at least one beneficiary
It is not always necessary to identify the trustor who may be also be a trustee and/or one of the beneficiaries. In legal parlance, a trustor is called a settlor in the UK and a grantor in the US, whereas in common usage he or she may also be called a creator, donor, initiator, owner, or trust maker.
promise made by some party to act or refrain from acting in some manner
commitment
Such a promise often results a corresponding right or obligation with respect to another party to the commitment. Thus, obligations and rights are considered as reciprocal aspects of a commitment.
preferred share that confers zero votes per share, may be redeemed at the option of the issuer and/or of the shareholder with an extendable redemption date, provides a periodic stated income and dividends not paid in any year accumulate, and is registered
preferred, non-voting, extendable, cumulative, registered share
barrier option that is not triggered until a certain price threshold is met
Assume an investor purchases a knock-in put option with a down Direction, with a barrier price of $90 and a strike price of $100. The underlying security is trading at $110, and the option expires in three months. If the price of the underlying security reaches $90, the option comes into existence and becomes a vanilla option with a strike price of $100. Thereafter, the holder of the option has the right to sell the underlying asset at the strike price of $100, even though it is trading below $90. It is this right that gives the option value. The put option remains active until the expiration date, even if the underlying security rebounds back above $90. However, if the underlying asset does not fall below the barrier price during the life of the contract, the down-and-in option expires worthless. Just because the barrier is reached does not assure a profit on the trade since the underlying would need to stay below $100 (after triggering the barrier) in order for the option to have value.
knock-in option
If the price is never reached, it is as if the contract never existed. However, if the underlying asset reaches a specified barrier, the knock-in option comes into existence. The difference between a knock-in and knock-out option is that a knock-in option comes into existence only when the underlying security reaches a barrier, while a knock-out option ceases to exist when the underlying security reaches a barrier.
indicates costs, such as up front costs, brokerage fees and the like, that must be paid on delivery
has additional costs
loan to one or more individuals for household, family, or other personal expenditures granted based on the strength of the borrower's credit history or reputation in the community
unsecured consumer loan
interest rate benchmark that is made available by a specific market data provider for reference purposes
specific-provider interest rate benchmark
Benchmarks, such as those published by Bloomberg, Thomson-Reuters, and others, are usually quoted as of a specific date and time of day.
economic indicator representing the ratio of the employed population with respect to the overall civilian non-institutional population of a given economy for some specified period
legal entity established by a government to consider evidence and make judgements in some field of activity
deals with, handles, or gives attention to
convention that specifies how recurring days should be handled, such as the end of the month, a particular day of the month, a day of the week, or more specifically, a t-bill auction date
card verification code that is the rightmost three-digit value printed in the signature panel area on the back of the card
corporation whose objective is to make money, i.e., to ensure realization of a financial benefit such that the amount of revenue gained from a business activity exceeds the expenses, costs and taxes needed to sustain that activity
code for the reason that a legal entity ceased to exist and/or operate
issuer and financial services provider that issues payment cards or performs, facilitates, or supports issuing services including but not limited to issuing banks and issuing processors
economic indicator representing measure of the value of the goods and services purchased by, or on the behalf of, 'persons'
Personal consumption expenditures consist of purchases of goods and services by households and by nonprofit institutions serving households (NPISHs). These goods and services include imputed expenditures on items such as the services of housing by a homeowner (the equivalent of rent), financial and insurance services for which there is no explicit charge, and medical care provided to individuals and financed by government or by private insurance.
amount charged, expressed as a percentage of principal, in exchange for the use of assets
Interest rates are typically noted on an annual basis, known as the annual percentage rate (APR). The assets borrowed could include cash, consumer goods, and large assets such as a vehicle or building. The rate is derived by dividing the amount of interest by the amount of principal borrowed. Interest rates are quoted on bills, notes, bonds, credit cards, and many kinds of consumer and business loans.
preferred share that confers exactly one vote per share, may be exchanged for securities of another issuer, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic stated income and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, voting, redeemable/exchangeable/extendable, participating, registered share
line of credit granted to a homeowner secured by the equity value in a borrower's home or other property
home equity line of credit
HELOC
Home equity loans allow the borrower to borrow against the difference between the fair market value of the property, as determined by an appraisal, and the amount of any outstanding debt on that property, which is typically a first mortgage. Common practice is to set the maximum amount that can be borrowed of up to 80 percent of the fair market value less any outstanding debt.
Usually, the term of a HELOC can vary from 5 to up to 25 years, with an initial draw period during which the borrower can access the line of credit, followed by a repayment period during which monthly payments on principal and interest are due until the loan is paid in full. Note that there are restrictions in the US on the nature of the property that may be used as collateral for a HELOC - it must be classified as a 1-4 family dwelling. That determination is independent from the use of proceeds.
derivative instrument that is a privately held, negotiable bilateral contract traded over-the-counter (OTC) between two parties in a creditor/debtor relationship, enabling the creditor to effectively transfer some or all of the risk of a debtor defaulting to a third party
Examples include credit default swaps (CDS), collateralized debt obligations (CDO), total return swaps, and credit spread options and forwards.
credit derivative
The third party accepts the risk in return for payment, known as the premium.
person that is the ultimate user of a good, product or service
For the purposes of the CPI and related statistics, the definition of consumer is limited to humans. In general, a consumer could include a pet, as the consumer of pet food, for example, although the pet owner would likely be the purchaser and target of advertising.
The consumer is not always the purchaser of the product. Consumers are considered to be the users of the final product. For example, purchasers of building products are interim users of these products while constructing the finished product, which then may be purchased by the consumer.
consumer as defined by the Consumer Price Index (CPI)
option giving the buyer (holder) the right, but not the obligation, to buy the assets specified at a fixed price or formula, on or before a specified date
call option
ISO 10962, Securities and related financial instruments - Classification of financial instruments (CFI) code, Fourth Edition, 2019.
The seller (issuer) of the call option assumes the obligation of delivering the assets specified should the buyer exercise the option.
a party who pays a bill or fees, or who makes payments to a payee in partial or complete fulfillment of an obligation
common share that confers less than one vote per share, is restricted from a sales / transfer perspective, is nil paid and is registered
common, restricted voting, restricted, nil paid, registered share
preferred share that may be exchanged for a security of another issuer
the date that the financial service provider was formally established
This may be the date on its papers of incorporation or formation document, or the date on which it was granted a license.
indicates a precondition, requirement, or other contribution (e.g., data) to some activity, process, system, report, analysis, etc.
contract that involves physical delivery of the commodity asset at settlement
commodity spot contract
state-chartered savings association that is organized and operates according to the laws of the state in which it is chartered or organized, including Massachusetts, New Hampshire, Rhode Island or Vermont
regulation codified in law specific to securities and investments
indicates the party that is asked for something
preferred share that confers less than one vote per share, has no fixed maturity date, provides a periodic income whose dividend rate is adjusted through an auction, and is registered
preferred, restricted voting, perpetual, auction rate income, registered share
obligation-specific credit event whereby the book value of the obligation, such as the outstanding principal amount, is reduced
write-down
bank that is licensed to conduct business in the United States
As defined in the Federal Deposit Insurance Act, https://www.fdic.gov/regulations/laws/rules/1000-400.html#fdic1000sec.3a
The Bank Holding Company Act of 1956 defines a bank as any depository financial intermediary that accepts checking accounts (checks) or makes commercial loans, and its deposits are insured by a federal deposit insurance agency. A bank acts as a middleman between suppliers of funds and users of funds, substituting its own credit judgement for that of the ultimate suppliers of funds, collecting those funds from three sources: checking accounts, savings and time deposits; short-term borrowings from other banks; and equity capital. A bank earns money by reinvesting these funds in longer-term assets.
A bank, as specified in the Investment Company Act of 1940, is a financial intermediary that is (a) a depository institution (as defined in section 3 of the Federal Deposit Insurance Act) or a branch or agency of a foreign bank (as such terms are defined in section 1(b) of the International Banking Act of 1978), (b) a member bank of the Federal Reserve System, (c) any other banking institution or trust company, whether incorporated or not, doing business under the laws of any State or of the United States, a substantial portion of the business of which consists of receiving deposits or exercising fiduciary powers similar to those permitted to national banks under the authority of the Comptroller of the Currency, and which is supervised and examined by State or Federal authority having supervision over banks, and which is not operated for the purpose of evading the provisions of this title, and (d) a receiver, conservator, or other liquidating agent of any institution or firm included in clause (a), (b), or (c) of this paragraph.
links a debt to the party to which it is payable
loan that is secured with respect to repayment of principal and interest by guaranty
guaranteed loan
In the U.S., the term 'guaranteed loan' typically refers to a loan that is backed by a federal agency, such as the Department of Veterans Affairs or the Small Business Administration. Student loans may be guaranteed by the Student Loan Marketing Association.
A loan guarantee is a promise by one party to assume the debt obligation of a borrower if that borrower defaults. A guarantee can be limited or unlimited, making the guarantor liable for only a portion or all of the debt.
equity option that allows the holder to buy or sell shares of stock with expiration dates that are longer than one year, and typically up to three years from issue
long-term equity anticipation security
LEAP
By providing opportunities to control and manage risk or even to speculate, LEAPS are virtually identical to regular options. Expiration dates on LEAPs can range from nine months to three years, which is longer than the holding period for a traditional call or put option. Although they are not available on all stocks, LEAPS are available on most widely held issues.
exercise terms that stipulate that an option may only be exercised at the date of expiration
European exercise terms
trading date rule defined as the last trading day of an Australian Stock Exchange (ASX) New Zealand (NZ) 90-Day Bank Accepted Futures and Options product, the first Wednesday after the ninth day of the relevant settlement month
International Money Market (IMM) New Zealand Dollar (NZD) trading date rule
independent party qualified and authorized to examine and report on the accuracy of financial records and ensure that companies comply with tax laws
An external auditor is an individual or organization from outside the company, who typically is employed by an auditing firm that handles many different clients.
person, organization or group that analyzes some aspect of something and develops a rating
the price over par paid by an issuer to redeem securities when exercising a call provision
classifier for American depositary receipts that categorizes ADRs into levels based on the extent to which the foreign company has access to the U.S. market
American depositary receipt level scheme
ADR level
the amount of money that is subtracted from the notional on each step date
Note that this is an actual concrete sum of money, which may be specified either as a monetary amount (e.g. dollars and cents) or as a percentage of either the original notional amount or the previous notional amount.
virtual address that defines an electronic messaging endpoint to which email messages can be delivered, typically via an Simple Mail Transfer Protocol (SMTP) based communications system
Electronic mail, abbreviated e-mail or email, is a method of composing, sending, and receiving messages over electronic communication systems. The term e-mail applies both to the Internet e-mail system based on the Simple Mail Transfer Protocol (SMTP) and to intranet systems allowing users within one company or organization to send messages to each other. Often these workgroup collaboration systems natively use non-standard protocols but have some form of gateway to allow them to send and receive Internet e-mail. Some organizations may use the Internet protocols for internal e-mail service.
bank holding company that is licensed to conduct business in the United States and is regulated and supervised by the Federal Reserve in accordance with the Bank Holding Company Act of 1956
According to the FFIEC, a bank holding company is a company that owns and/or controls one or more U.S. banks or one that owns, or has controlling interest in, one or more banks. A bank holding company may also own another bank holding company, which in turn owns or controls a bank; the company at the top of the ownership chain is called the top holder. The Board of Governors is responsible for regulating and supervising bank holding companies, even if the bank owned by the holding company is under the primary supervision of a different federal agency (OCC or FDIC).
From the Bank Holding Company Act of 1956, a 'bank holding company' means any company (1) which directly or indirectly owns, controls, or holds with power to vote, 25 per centum or more of the voting shares of each of two or more banks or of a company which is or becomes a bank holding company by virtue of this Act, or (2) which controls in any manner the election of a majority of the directors of each of two or more banks, or (3) for the benefit of whose shareholders or members 25 per centum or more of the voting shares of each of two or more banks or a bank holding company is held by trustees; and for the purposes of this Act, any successor to any such company shall be deemed to be a bank holding company from the date as of which such predecessor company became a bank holding company. Notwithstanding the foregoing, (A) no bank shall be a bank holding company by virtue of its ownership or control of shares in a fiduciary capacity, except where such shares are held for the benefit of the shareholders of such bank, (B) no company shall be a bank holding company which is registered under the Investment Company Act of 1940, and was so registered prior to May 15, 1955 (or which is affiliated with any such company in such manner as to constitute an affiliated company within the meaning of such Act), unless such company (or such affiliated company), as the case may be, directly owns 25 per centum or more of the voting shares of each of two or more banks, (C) no company shall be a bank holding company by virtue of its ownership or control of shares acquired by it in connection with its underwriting of securities and which are held only for such period of time as will permit the sale thereof upon a reasonable basis, (D) no company formed for the sole purpose of participating in a proxy solicitation shall be a bank holding company by virtue of its control of voting rights of shares acquired in the course of such solicitation, and (E) no company shall be a bank holding company if at least 80 per centum of its total assets are composed of holdings in the field of agriculture.
control that exists informally and is accepted, although not formally recognized
For example, de facto acquisition or change of control means the acquisition, directly or indirectly, by any person or group of persons acting jointly or in concert, of beneficial ownership of, or control or direction over, sufficient voting shares of some legal entity to permit such person or persons to exercise, or to control or direct the voting of, 50 percent or more of the total number of votes in that entity.
security that can be transferred to another party
student loan (1) whose lender is a government agency or instrumentality, and/or (2) that is treated uniquely due to tax regulations
regulated student loan
In the United States, certain student loans survive bankruptcy and are subject to additional tax regulations that do not apply to other kinds of loans.
net gain or loss on an investment over a specified time period, expressed as a percentage of the investment's initial cost or value as of a specific point in time
rate of return
RoR
party that owns a significant voting stake in an organization that is less than 50 percent but greater than some threshold
Note that the concept of significance varies depending on the jurisdiction, and particularly with respect to reporting requirements. For example, in some cases, three (3) percent ownership of any class or series of shares is considered significant, and in others it means more than five or ten percent of the total combined voting power across all classes of securities.
indicates the organization that the person has some authority over and managerial responsibility for
indicates the date on which a newly issued security starts trading
share that certifies ownership of a contractual right to a percentage of a company's profits
variable interest entity share
Unlike a traditional stock certificate, the VIE share provides a legal proprietary interest in a completely separate company's assets, sometimes referred to as a shell company. The contractual right certified by the VIE share is derived from a contract between (1) the company named on the VIE share and (2) the shell company. In other words, VIE shareholders only have a traditional stock certificate in the completely separate shell company, which is entitled to a percentage of the named company's profits via a private contract.
VIE share
financial instrument that provides the holder an interest in, or the privilege to subscribe to, or to receive specific assets under terms specified
ISO 10962, Securities and related financial instruments - Classification of Financial Instruments (CFI code), Fourth edition, 2019-10.
Note that certain fund units, including but not limited to units in pension funds and other non-public investment structures may be considered entitlements but not securities. They may or may not be identified using traditional financial instrument identifiers. Some entitlements, such as warrants, whose value changes based on the value of some underlier, are considered derivative instruments.
relative ranking that a guaranty has in the context of a contract, for example for a credit enhancement priority
non-bank financial service provider based in the United States of which 25 percent or more of whose voting shares are owned or controlled by an entity that is also based in the United States, or of which a majority of its directors are controlled by such domestic entity, or of which 25 percent or more of whose voting shares are held by trustees for the benefit of the shareholders or members of such domestic entity
domestic non-bank subsidiary of a domestic entity
indicates the date and time, including time zone, a contract has been signed by all the necessary parties
indicates the currency in which the financial instrument was issued
provision specifying something that the contracting parties agree to, i.e., a promise or pledge made by one of the parties to perform some action or fulfill some duty
Contractual commitments include general conditions which are common to all types of contracts, such as general and special arrangements, provisions, requirements, rules, rights and obligations, specifications, and standards that form an integral part of an agreement or contract, as well as special conditions which are peculiar to a specific contract (such as, contract change conditions, payment conditions, price variation clauses, penalties). Such a commitment indicates an intention or willingness to do something, which may not be legally binding, for example, to negotiate in good faith.
indicative middle market (mean of spot buying and selling) rate as observed by the reporting source
party that is responsible for issuing ratings
A rating issuer is frequently, but not always the rating scale publisher. A rating issuer may delegate responsibility for producing a rating to a rating party.
municipal bond used to fund a development project that is payable from the revenues of an assessment (tax) on the community that is intended to benefit from the project
A special assessment is a charge imposed against a property in a particular locality because that property receives a special benefit by virtue of some public improvement, separate and apart from the general benefit accruing to the public at large. Special assessments may be apportioned according to the value of the benefit received, rather than merely the cost of the improvement.
indicates the amount of the dealt currency which would be exchanged in a trade for which the stated spot rate applies
entry in a Financial Instrument Global Identifier (FIGI) registry
Financial Instrument Global Identifier (FIGI) registry entry
preferred share that confers exactly one vote per share, has no fixed maturity date, provides a periodic stated income and dividends not paid in any year accumulate, and is registered
preferred, voting, perpetual, cumulative, registered share
any publicly available identifier that is used to identify a security
concatenation of an entity's business number, the 'RZ' abbreviation and a 4-digit subaccount number used for information returns
An organization may have more than one information returns program number through its subunits, this is handled through additional 4-digit subaccount numbers. This is used as both an account and an identifier for the registration. As opposed to other program numbers, this number is used for filing information returns and not as an account.
identifies any special period at the end of a regular schedule
specifies the amount of money involved in a payment
time deposit account that allows deposits evidenced by a negotiable or nonnegotiable instrument, or a deposit in book entry form evidenced by a receipt or similar acknowledgement issued by the bank, that provides, on its face, that the amount of such deposit is payable to the bearer, to any specified person, or to the order of a specified person, as follows: (1) on a certain date not less than seven days after the date of deposit, (2) at the expiration of a specified period not less than seven days after the date of the deposit, or (3) upon written notice to the bank which is to be given not less than seven days before the date of withdrawal.
warrant that either does not specify call or put features, or that explicitly includes both a call and put feature
call put warrant
The call and put code, 'B', in the CFI stands for 'Both', meaning such a warrant embodies characteristics of both a call and a put. This can appear in structured warrants or exotic warrants where payout may depend on movements in either direction (or give the holder a choice at certain triggers).
straddle warrant
identifies the employee in an employment situation
situation representing the state of being employed, i.e., the relationship that holds between an employer and employee for some period of time
employment
This definition does not include workers in contingent arrangements, such as independent contractors, leased employees, temporary employees, on-call workers, and others that do not have a direct contractual relationship with the employer. The distinction is important for legal reasons, particularly for regulatory reporting with respect to responsible parties such as corporate officers, lending officers, others authorized or licensed to perform certain tasks, and traders, for example.
In the broadest sense, employment is the situation in which someone is fully engaged in doing something that they want to do. From a FIBO perspective, however, employment is understood to be more specific. It is the relationship between two parties, evidenced by an implicit or explicit contract, in which work is compensated and in which one party, a legal person, typically a formal organization, acts as the employer and the other, typically a legally capable natural person, as the employee.
convention that enumerates the possible ways to handle a date that falls on a weekend or holiday
Business day conventions commonly include: - Following business day: Moves the date to the next business day - Modified following business day: Moves the date to the next business day, unless it would fall in the next calendar month - Preceding business day: Moves the date to the previous business day - Modified preceding business day: Moves the date to the previous business day, unless it would fall in the previous calendar month
Business day conventions are linked to a calendar. Calendars have working and non-working days. In the ACTUS dictionary, the rules related to business day conventions (BDCs) state that a BDC value other than N means that cash flows cannot fall on non-working days, they must be shifted to the next business day (following) or the previous on (preceding). These two simple rules get refined twofold: (1) Following modified (preceding): Same like following (preceding), however if a cash flow gets shifted into a new month, then it is shifted to preceding (following) business day; (2) Shift/calculate (SC) and calculate/shift (CS). Accrual, principal, and possibly other calculations are affected by this choice. In the case of SC first the dates are shifted and after the shift cash flows are calculated. In the case of CS it is the other way round.
The 2006 IDSA Definitions Section 4.11, provide the following examples: FRN Convention; Eurodollar Convention. - If a payment date or period end date falls on a non-business day, it is moved to the next business day. - If there is no numerically corresponding day in a calendar month, the payment date or period end date is moved to the last business day in that month.
the branch of government that is authorized and responsible for the daily administration of the government
The executive branch executes and enforces the law.
agricultural resource that is a small, hard seed, of a food plant, especially of a cereal plant, such as wheat, corn, rye, oats, rice, and millet
grain commodity
physical precious metal that is officially recognized as being at least 99.5 percent pure
In the United States, bullion that is eligible for reference in a commodities contract may include U.S. gold Buffalo coins minted by the U.S. Mint that are 1 troy ounce, 0.5 ounce, 0.25 ounce, or 0.10 ounce; 1 ounce silver coins; certain platinum coins; and gold, silver, palladium, and platinum bullion that meet or exceed the fineness requirements of a regulated futures contract. Bullion must also be certified by an approved certifier, typically identified by an exchange, including but not limited to the U.S. Mint.
bullion
Physical metals fall into two categories: (1) bullion, which are coins, ingots or bars of a specific weight and purity; and (2) "numismatic" or collectible coins, which can be rare or old coins, or special proofs that are newly minted as collectibles. If a particular asset is identified as "numismatic" or "collectible", it is, by definition, not considered bullion aside from its melt value.
expression representing the perceived value of a company as determined by the stock market at a specific point in time
market capitalization
market cap
contract terms setting out restrictions on either the holder or the issuer of the security, as specified in the terms of the instrument itself
authorizes to sign agreements, access accounts and/or perform other similar tasks
co-owner, member, and agent of a partnership whose participation level, including proportional liabilities and share in the profit / loss of the business is specified in a partnership agreement
redeemable preferred share with a fixed maturity date whose issuer has the option to extend the maturity date
redeemable preferred share with extendable maturity date
preferred share that confers zero votes per share, may be exchanged for securities of another issuer, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic stated income and dividends not paid in any year accumulate, and is registered
preferred, non-voting, redeemable exchangeable, cumulative, registered share
right that depends on a future event or the performance of an action
contingent right
Contingent means that the interest, claim, or right is conditional, realized only when and if something occurs.
entry in a National Securities Identifying Number registry
national numbering agency registry entry
identifies one or more underwriters involved in raising capital for or distributing the instruments that are the subject of the offering
Underwriting is the process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing either equity or debt securities.
defined scope, limits, and criteria used to determine what is included or excluded in an evaluation, analysis, or measurement of environmental impacts, sustainability performance, or related objectives
The assessment boundary ensures consistency, transparency, and focus by specifying the parameters for the evaluation. It includes: (1) the scope of assessment, (2) the relevant spacial boundaries, (3) the time period(s) over which the assessment is to be conducted, (4) organizational boundaries - which parts of an organization or project are included in the evaluation, (5) impact categories - which environmental or sustainability impacts are included, (6) lifecycle boundaries - which stages of the lifecycle are included, (7) exclusions - specific elements, processes, or impacts that are excluded from the assessment and justification for these exclusions, and (8) stakeholder boundaries - the extent to which external stakeholders or externalities (e.g., indirect social impacts) are considered. - The scope statement specifies which aspects, activities, processes, or entities are included in the evaluation. For example, in a greenhouse gas (GHG) emissions assessment, the boundary might cover Scope 1 (direct emissions), Scope 2 (indirect emissions from energy use), and Scope 3 (upstream and downstream emissions in the value chain). - The spatial boundaries cover the geographic region(s) relevant for the assessment, including but not limited to a specific site, facility, region, or global operations of a company or project. - The relevant timeframe may be a single year, the entire lifecycle of a product, or a specific project phase. - Organizational boundaries may include a parent company, subsidiaries, joint ventures, or specific divisions based on control, ownership, or influence. - Impact may include carbon emissions, energy use, water consumption, biodiversity impact, and waste generation. - Lifecycle boundaries may cover product or process evaluations (e.g., Life Cycle Assessment or LCA). If so, the boundary defines which stages of the lifecycle are included: Cradle-to-Grave: Includes all stages, from raw material extraction to disposal, Cradle-to-Gate: Covers stages up to the point where the product leaves the manufacturing facility. or Gate-to-Gate: Focuses on a specific segment of the lifecycle, such as manufacturing processes, for example. - Small, immaterial emissions sources might be excluded if their impact is negligible. - Stakeholder boundaries with respect to a given sustainability evaluation might include impacts on local communities or supply chain partners.
leg of a commodity return swap in which the return is based on a physical commodity, or the price, or behavior of the price, or any other aspect related to a physical commodity
commodity return leg
The cash flows from a commodity may be negative as you have a cost from holding the commodity but there are no interim cash flows, so it equates to a negative interest rate. So a commodity swap is like a TRS in that it is based on the return on the increase in value.
service involving any transfer of funds other than a transaction involving a paper instrument, that is initiated through an electronic terminal, telephone, or computer and that orders or authorizes a financial institution to debit or credit an account
EFT services include transfers through automated teller machines, point-of-sale terminals, automated clearinghouse systems, telephone bill-payment plans in which periodic or recurring transfers are contemplated, and remote banking programs.
relates a polity to a geopolitical entity where the polity exercises shared dominion and authority of a political state
indicates an employee that is employed by the employer
has a party which directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with the company
identifies the actor that holds title to the asset in an ownership situation
refers to a term that is included in an agreement that is not considered legally binding
In other words, a breach of such terms in the future would not be considered to be a breach of the contract.
indicates the party in the role of issuing the information
artificial currency used as calculation basis for another currency(s) and accounting purposes
Codes for the representation of currencies and funds, ISO 4217, Eighth edition, 2015-08-01, section 3.3
objective that reflects values generally thought to be shared by and that is intended to benefit the populace as a whole
preferred share that confers multiple votes per share, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic stated income and dividends not paid in any year accumulate, and is registered
preferred, enhanced voting, redeemable, cumulative, registered share
bond issued by a government sponsored agency or corporation rather than by the government directly
It doesn't carry an explicit full faith and credit guarantee but the market believes the government wouldn't let it default or fail.
situation relating an individual member of the board of directors to the organization
a tradeable debt instrument created either through the process of removing coupons from a bond and then selling the separate parts as a zero coupon bond and an interest paying coupon bond or through taking the opposite position from some variant in the options market
strip
STRIPS is an acronym for Separate Trading of Registered Interest and Principal of Securities, which has come to be used as a term in its own right.
Separate Trading of Registered Interest and Principal of Securities
loan secured by real estate that pays money to the borrower against a set principal limit based on the value of existing equity in the underlying collateral
The interest accrued is added to the principal balance.
the last day of a calendar month, irrespective of the length of the calendar month
the day of the month on which interest payments must be made on the debt
commitment (promise or obligation) made by one party without requiring a reciprocal promise from another party
Unilateral commitments include some promotional offers, contests, and rewards, where the offering party sets conditions without requiring upfront agreement from others.
contract terms that define the commitment to and mechanism for settling one or more sides of a transaction
In general, settlement involves arrangement of disposition of property, typically for legal reasons. With respect to financial transactions, it involves completion of a trade, either between brokers or agents, or between a broker and client. This may include settlement in cash, either for the entire transaction or for the cash leg of a transaction, either now or at some specified time in the future.
identifies the independent party (i.e., the individual or organization) that disseminates the material
corporate action involving the distribution of subsidiary stock to the shareholders of the parent company without a surrender of shares
spin off
Spin-off represents a form of divestiture usually resulting in an independent company or in an existing company. Examples include demerger, distribution, and unbundling.
specifies a recurrence interval (monthly, quarterly, annual) that a statistical measure reflects
refers to a requirement included in an agreement related to fulfillment as of some point in time in the lifetime of the contract
record of actual payments of principal, interest, and other related amounts made by a borrower to a lender or servicer in order to fulfill their re-payment obligation
indicates the original exchange that listed the security
indicates the origin of a given quote or price for a financial instrument
has pricing source
links an option to the schedule specified in the contract that constrains when it may be exercised
has exercise schedule
An exercise schedule may be as simple as a single date or date period. However, in more complex cases, it may be an ad hoc schedule of individual dates, or a regular schedule of periodic exercise dates.
interest rate swap that exchanges cashflows based on two different floating interest rates
This is a swap in which two parties swap variable interest rates based on different money markets, and this is usually done to limit interest-rate risk that a company faces as a result of having differing lending and borrowing rates.
original document certifying the circumstances of the death (such as how and when it occurred), or a certified copy of or representation of the ensuing registration of that death
A death certificate is a vital record documenting information (including age, occupation, place of birth, place of residence, and often identifying the parents and possibly spouse of the deceased) relating to a dead person and including a doctor's certification of the cause of death.
indicates a party that guarantees, endorses, or provides indemnity for some obligation on its behalf
event announced, initiated or carried out by an organization that affects a legal entity or the securities it issues and may have a material impact on that entity's stakeholders, such as shareholders and creditors
Actions that impact an entity may be initiated by an issuer, exchange, regulator, creditor, or other third party.
action
Actions initiated by an issuer are typically approved by that company's board of directors and authorized by their shareholders.
member of a board of directors that is also an employee of the organization
strategy for achieving specific business objectives related to sustainability (from an environmental and/or social and/or governance (ESG) perspective)
sustainability business strategy
An SLL borrower should clearly communicate to its lender(s) its rationale for the selection of its KPI(s) (i.e. relevance, materiality, whether it is core to the borrower's overall business) and the motivation for the SPT(s) (i.e. ambition level, benchmarking approach and how the borrower intends to reach such SPTs). Borrowers are encouraged to position this information within the context of their overarching objectives, sustainability strategy, policy, sustainability commitments and/or processes relating to sustainability.
SLLs aim to support a borrower's efforts in improving its sustainability profile over the term of the loan. They do so by aligning loan terms to the borrower's performance, which is measured using one or more sustainability KPIs that can be internal and/or external. The KPIs must be material to the borrower's core sustainability and business strategy, and address relevant ESG challenges of its industry sector.
information action that provides details of address changes for a legal entity
Address changes may impact securities master data management, including but not limited to where shares are registered and by whom.
organization address change
Note that for the purposes of this model, this is distinct from culpability (the ability to commit criminal acts). That would be a separate and analogous term but with grounding in criminal rather than civil law.
liability capacity
association of two or more legal persons to carry on as co-owners a business for profit
Partnerships exist in many countries world-wide. Examples of the laws related to the establishment and operation of partnerships include the Partnership Act of 1890 in the United Kingdom and the Uniform Partnership Act in the United States.
Whether or not partnerships are established through, for example, incorporation, depends on the jurisdiction. Partnerships typically not corporations in the US, but can be in Australia and Ghana. See https://legalvision.com.au/what-are-incorporated-limited-partnerships/ and http://swiftlaw.co/incorporated-partnership/ for additional details.
global depositary receipt that represents the purchase, or ownership, of foreign assets which are deposited in a trust bank in Japan
Japanese depositary receipt
JDR
A Japanese Depositary Receipt (JDR) is an instrument issued by a trust bank in Japan that evidences ownership of securities in a corporation organized outside Japan. JDRs trade on the Tokyo Stock Exchange (TSE) in yen, and in accordance with Japanese market conventions, enabling foreign issuers to tap the Japanese capital market and local investors to efficiently invest in quality international companies.
system for allocating identifiers to roles that parties play
party to a contract with whom one negotiates on a given agreement
The counterparty is usually the party 'on the other side' of a contract from the perspective of the issuer or holder. The term 'counterparty' can refer to any party to an agreement, depending on context.
highest-level (top, end) ancestral ownership, evidenced by accounting consolidation, by some party of some other legal entity
syndicate member that is a financial services provider that contributes funds to a syndicated loan or loan participation note
finance syndicate member
Syndicate members may include a variety of financial institutions, such as commercial banks, investment banks, institutional investors - insurance companies, pension funds, and hedge funds, and specialty finance firms, focused on specific industries or credit profiles, which may join syndicates for specialized or higher-risk loans.
preferred share that confers exactly one vote per share, may be redeemed at the option of the issuer and/or of the shareholder with an extendable redemption date, provides a periodic income whose dividend rate is set periodically, and is registered
preferred, voting, extendable, adjustable income, registered share
rating performer an issuer uses to assess ratings
classifier that indicates whether the exchange or data reporting services provider is an operating level or market segment level facility
common share that confers exactly one vote per share, is unrestricted from a sales perspective, is fully paid and is registered
common, voting, unrestricted, fully-paid, registered share
gives something in return something else
official statement specifying how the funds raised via a new issue of municipal securities are to be applied
tax identification scheme used in the United States
taxpayer identification numbering scheme
preferred share that confers multiple votes per share, may be exchanged for securities of another issuer, provides a periodic income whose dividend rate is adjusted through an auction, and is registered
preferred, enhanced voting, exchangeable, auction rate income, registered share
indicates the formal date of incorporation as stated in filing documents
scheme for classifying interest rate benchmarks, such as the FpML classification scheme
interest rate benchmark classification scheme
composite identifier of 14 or 16 digits embossed on a bank or payment card and encoded in the card's magnetic strip
The PAN identifies the issuer of the card and the account including part of the account number, and contains a check digit that verifies the authenticity of the embossed account number.
two-character (2 alphanumeric) code associated with the organization for the purposes of banking telecommunications
ISO 9362:2014 Banking -- Banking telecommunication messages -- Business identifier code (BIC)
In the prior version of the standard, position 7 of the BIC determined the location of the BIC in a particular country. In a country spanning over multiple time zones, each character may have been used to define a different time zone. If an organization moved location to a different time zone within the same country, the existing BIC would normally have been deleted and replaced by a new BIC with the appropriate location code.
With the revision of the standard [and transition period ending November 2018], the location code has been re-defined as a 'party suffix' without any specific meaning. A new reference data attribute has been introduced in the SWIFTRef directories to indicate where the institution is located and to which time zone it refers.
indicates what the balance should be after a scheduled payment is made according to contract terms
corporate action involving the consolidation of legal entities or assets
merger / acquisition
Such consolidation may be accomplished via financial transactions such as mergers, acquisitions, consolidations, tender offers, purchase of assets, and management acquisitions.
preferred share that confers exactly one vote per share, may be redeemed at the option of the issuer and/or of the shareholder with an extendable redemption date, provides a periodic stated income and dividends not paid in any year accumulate, and is registered
preferred, voting, extendable, cumulative, registered share
indicates the date on which an offering or transaction officially closes, in contrast with an intended closing date
capital-protected product whose protection is defined as a percentage of the nominal price (e.g. 100 percent), with minimum redemption at expiry equivalent to the capital protection
Note that capital protection in this case refers to the nominal price only, and not to the purchase price. The value of the product may fall below its capital protection value during its lifetime; participation is in the underlying price increase above the conversion price; coupon payment is possible.
capital protection convertible certificate
ISO 10962, Securities and related financial instruments - Classification of financial instruments (CFI) code, Fifth edition, 2021-06-15, clause 6.4.7
preferred share that confers exactly one vote per share, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic stated income, dividends not paid in any year accumulate, and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, voting, redeemable, cumulative participating, registered share
measure of the average monthly wage an employee makes over the reporting period
indicates something to which the volatility measure applies and of which it is a measure
terms for payment of interest on a zero coupon bond
a subset of the enterprise population focused on establishments
certificate whose underlying asset represents a fraction of a basket of securities that corresponds to the subscription ratio
basket certificate
The issuer determines the basket's compilation before quoting the certificate. Fundamentally, all securities with regular, at least daily, price determinations are suited for the portfolio. The selection criteria for the shares or securities in the basket are known and remain unchanged during the life of the certificate. Note, however, that the composition of the share basket can change over time. If the issuer follows a specific strategy with the certificate, the basket has to be adjusted at specific end-of-period dates, provided the market leaders change. In such a case, the basket is called an active basket. If, in contrast, the composition of a share basket remains clearly defined, as is the case for an index certificate, it is called a passive basket.
The success of a basket certificate is measured on whether it can outperform a comparison index or fund, a so-called benchmark. Basket certificates can be roughly divided into three categories based on the criteria for selecting securities: Sector certificates; country or region certificates; and strategy and thematic certificates.
Basket certificates make sense if an investor is convinced of the potential in a particular sector or region, but shies away from the risk of investing in individual securities. Because the certificate is expected to achieve higher profits than the benchmark index, the share basket usually contains fewer titles than the benchmark index. That increases the potential for profits; but the risk of loss increases compared to the index. Unlike shares, basket certificates are not eligible for dividend payouts. The limited maturity should also be taken into account.
mailbox, other than a U.S. Post Office box, associated with an address
non-depository trust company that is not a member of the Federal Reserve system
non-depository trust company - non-member institution
system for allocating identifiers to driver's, operating, or non-driver identification documents
Schemes for driver's license identification are typically regionally defined, and there may be jurisdiction-specific scope required as an additional restriction on a specific scheme.
futures contract whose underlying asset is an agreement to exchange a specified amount of one currency for another at some point in the future based on pricing stated in the contract
currency future
forex future
foreign exchange future
preferred share that confers less than one vote per share, may be exchanged for securities of another issuer, provides the same dividends as common/ordinary shareholders, and is registered
preferred, restricted voting, exchangeable, normal income, registered share
governmental or non-governmental entity that is established by international law or treaty or incorporated at an international level
Kiljunen, Kimmo (2004). The European Constitution in the Making. Centre for European Policy Studies. pp. 21-26. ISBN 978-92-9079-493-6
ISO 20275:2017, Financial services - Entity legal forms (ELF), First Edition, July 2017.
A supranational union is a supranational polity which lies somewhere between a confederation that is an association of states and a federation that is a state. Unlike states in a federal super-state, member states retain ultimate sovereignty, although some sovereignty is shared with, or ceded to, the supranational body.
party that is related to a legal entity, directly, or indirectly through one or more intermediaries, and controls, or is controlled by, or is under common control with that entity, typically determined by the degree of ownership
activity involving the evaluation or estimation of the nature, quality, ability, or value of someone or something
purchase right that gives a prospective acquiree's bondholders the right to buy bonds of the firm or bonds of anyone who acquires the firm at a deep discount to their fair market value
bond purchase right
nine-character alphanumeric securities identifier, issued in Luxembourg, jointly by Euroclear and Clearstream
date by which payment of the current outstanding balance, part thereof, or a minimum amount due must be made to the creditor
indicates the time of day when a change in a benchmark rate is published, typically the same time every business day
swap whose payments are linked to the change in value of underlying equities (e.g. shares, basket of equities or index) or their cashflow(s)
equity swap
Equity swaps can be physically or cash settled.
party that has sole control over and directs the affairs of some legal entity
entity owner that holds an equity stake in said entity, in the form of shareholders' equity
Typically this would be share ownership or the holding of partnership equity. Ownership in this 'constitutional' sense means that the owner is in some way a member of the organization, such as an employee or director, as distinct from some outside investor.
savings association that primarily accepts savings account deposits and invests most of the proceeds in mortgages
Savings banks and savings and loan associations and credit unions are examples of thrift institutions.
financial service provider that issues an insurance policy
retractable preferred share whose retraction value must be paid in cash
basket of securities whose constituents are credit agreements that allow the borrower to periodically take out money over an extended period of time rather than reapplying for a loan every time they need funds
credit facility debt basket
The credit facility debt basket consists of a number of credit facilities including revolving loans/line of credit, committed facilities, letters of credit and most retail credit accounts. The first port of call for issuers is the credit facility debt basket. In addition to the fixed dollar (or euro) amounts, credit facility debt baskets in senior secured notes and indentures typically provide for a grower component that is the greater of the fixed dollar/euro amount and a percentage of total assets, total tangible assets or EBITDA.
a legal person created by a royal charter or decree
Anything with 'Royal Institute' in the name. Also universities are generally set up by royal charter in a monarchy or principality, (often pre-dating any Privy Council i.e. directly be the monarch in the case of older universities). The Bank of England and the British Broadcasting Council (BBC) are also incorporated through Royal Charter.
In a monarchy or principality, the monarch typically vests the power to create such bodies, in an entity called (for example) the Privy Council.
basket of debt instruments that allows a company to incur an amount of indebtedness that is equal to (or in top tier sponsor transactions in the U.S., up to two times) the amount of equity contributed to the group
contribution debt basket
In U.S. law, a non-guarantor debt basket is a shared basket in an amount not to exceed the greater of $150,000,000 and 20% of Consolidated EBITDA for the most recently ended Test Period at any time outstanding that may be used for (A) the incurrence of certain Indebtedness by Restricted Subsidiaries that are not Loan Parties under Sections 6.01(a)(xii), 6.01(a)(xix) and 6.01(a)(xx) and (B) Secured Cash Management Obligations of any Restricted Subsidiary that is not a Loan Party.
A non-guarantor debt basket is often also permitted to be secured by assets of a subsidiary other than the issuer/borrower or guarantors.
calculated date that is determined via a settlement rule
unique identifier for a physical address
Physical address identifiers may include bar codes, QCR codes, and +codes in a number of countries.
structured finance securities collateralized by pools of auto loans and leases (auto ABS), credit card receivables (credit card ABS) or student loans (student loan ABS)
consumer asset-backed security
voluntary, deliberate agreement between competent parties to which the parties agree to be legally bound, and for which the parties provide valuable consideration
Note that the data of issuance may be, but is not always, the same as the effective date.
A contractual relationship is evidenced by (1) an offer, (2) acceptance of the offer, and a (3) valid (legal and valuable) consideration. A contract is a kind of agreement, and as such it embodies the assertion that it has been negotiated, such negotiation having included the presence of some offer and the acceptance of that offer on the part of either or both of the parties.
Contracts are usually written but may be spoken or implied, and generally have to do with employment, sale or lease, or tenancy.
identifies a party designated as the point of contact for
control that exists as a matter of law, i.e., legitimate, legal control of something
depositary receipt where a certificate issued by a depositary bank, which purchases securities of foreign companies, creates a security on a local exchange backed by those securities
global depositary receipt
GDR
Global depositary receipts are the global equivalent of the original American depositary receipts (ADR) on which they are based. GDRs represent ownership of an underlying number of securities of a foreign company and are commonly used to invest in companies from developing or emerging markets by investors in developed markets.
international depositary receipt
contract terms for payment of interest on a debt
Interest is usually payable on any outstanding principal amount, therefore interest relates to the amount of debt outstanding at any given point of time, not to the principal amount advanced at the time that the loan was advanced or the debt security issued (aside from the initial payment).
Note that in most cases, the dates and payment frequencies for interest will coincide with the dates and payment frequencies related to the principal.
identifies a jurisdiction in which some law has effect
specifies a collection of values over which some analysis is performed
For certain calculations, such as certain measures of dispersion, date value pairs are expected as input, in other words, a dated structured collection.
indicates the date on which the issuer checks to determine whether a party was on the company's books as a shareholder when required (i.e., they must have been on the books prior to the ex-dividend date), to identify who is eligible to receive the next dividend
Companies also use this date to determine who is sent proxy statements, financial reports, and other information.
historical volatility measure of past trading ranges of prices of underlying securities and indexes
Calculations for historical volatility are generally based on the change from one closing price to the next.
specifies a price for something on which the contract is based
lowest value for a given security over the period specified
low price
sequence of characters uniquely identifying the precious metal in some context
classifier of events representing breaking a promise specified in a contract to do or not to do something, without a legitimate excuse
breach of covenant
In the case of a breach of a covenant or warranty, the contract remains binding and damages only are recoverable for the breach, whereas a breach of contract typically invalidates the entire contract.
basket of instruments, legal entities, or a combination thereof collected for the purpose of analyzing risk
basket of credit risks
Note that the risk related to a given constituent may be calculated based on either (1) the overall credit risk associated with the entity or, (2) the combined risk associated with an entity and the specific instrument identified, or (3) risk associated with the instrument on its own. Criteria for constituents is based on sectors (emerging market, financial, sovereign, etc), spread range (investment grade, non-investment grade), or asset type (loan, bond, mortgage-backed, asset-backed), second criteria is based on maturity of protection (2,3,5,7,10 yrs). Markit manages over 2000 CDS indexes, for example.
indicates a party to which some benefit or right has been granted
preferred share whose dividend payments are not carried forward
geographic directional symbol that follows the street name and street suffix in a street address
window of time during which the lookback is effective
has lookback period
credit event triggered when the credit rating of a party or obligation is lowered
On October 17, 2013, Dagong Global Credit Rating downgraded the United States from A to A- and maintained a negative outlook on the country's credit.
downgrade
investment fund that invests directly in other investment funds rather than investing in stocks, bonds, and other securities
fund of funds
ISO 10962:2019 Securities and related financial instruments - Classification of financial instruments (CFI) code, Fourth edition, October 2019
umbrella fund
subset of the civilian labor force considered to be employed during the reporting period
There are a number of distinctions with respect to how individuals are counted from country to country, including whether or not they are considered employed if they are on unpaid leave for some reason, and whether or not they are counted multiple times if they have more than one paying job.
sequence of characters uniquely identifying a specific project within the context in which that project or an overarching program is administered
preferred share that confers less than one vote per share, may be redeemed at the option of the issuer and/or of the shareholder with an extendable redemption date, provides a periodic stated income and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, restricted voting, extendable, participating, registered share
indicates the actor in the context of a control situation
schedule of milestone events, observations, or other occurrences and the associated dates and/or times when they will be done
trust company that accepts and executes trusts, but does not issue currency; non-depository trust companies can either be Federal Reserve Members or Federal Reserve Non-members
window of time during which pricing is monitored
has monitoring period
preferred share that confers zero votes per share, has no fixed maturity date, provides a periodic stated income and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, non-voting, perpetual, participating, registered share
product that takes the form of an agreement
This represents the case where the product itself is a contract, such as a life insurance policy or financial instrument, rather than a product or service whose terms of use, license to use, or terms of service are specified in a product.
registry for registering and maintaining information about the legal forms that are valid for business entities for a particular jurisdiction following the ISO 20275 standard
member of the board of directors of an organization that has no executive responsibilities towards the running of that organization
event in which a step change in the notional amount for a given swap leg occurs
The frequency / period length of the steps in the step schedule is a multiple of the calculation period or frequency. For example, if the notional is recalculated on every calculation date, applying a new interest rate to the new notional amount, then the two frequencies are the same. If notional is updated every second calculation period, then the step schedule specifies periods that are twice as long, and so on.
national identification number associated with a passport
kind of event that occurs during one or more stages of a lifecycle
a call notification or coupon payment as a part of a bond lifecycle
preferred share that confers exactly one vote per share, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic income whose dividend rate is set periodically, and is registered
preferred, voting, redeemable extendable, adjustable income, registered share
For example, certain equities derivatives have an underlying basket which is a basket of more than one index, not a basket of securities.
sequence of characters uniquely identifying a financial instrument for some purpose and within a specified context
Identifiers for financial instruments may include an ISIN, Sedol, CUSIP, BBGID, FIGI, or other identifier issued approximately when the instrument itself is issued, and based on the kind of instrument and jurisdiction in which it is issued.
scheme for specifying physical addresses according to a country specific standard
situation in which a voting shareholder, entity owner, or some other party in the case of a not-for-profit organization, appoints and/or nominates someone to the board of directors of an organization for some period of time
negotiable financial instrument issued by a trust company, security depositary, or bank that is evidence of the deposit of publicly traded securities and that facilitates the ownership of securities traded in other jurisdictions
depositary receipt
Depositary receipts are widely used in order to allow the trading of securities in jurisdictions other than the one where the original securities were issued, such as in a local market. Depositary receipts facilitate buying securities in foreign companies, because the securities do not have to leave the home country. They enable domestic investors to buy securities of foreign companies without the accompanying risks or inconveniences of cross-border and cross-currency transactions.
financial service provider that originates and/or funds mortgages for residential or commercial property
trust that cannot be modified, amended or terminated except under certain legal circumstances and typically not without the permission of the grantor's named beneficiary or beneficiaries
Irrevocable trusts also offer asset protection from future creditors and lawsuits.
common share that confers multiple votes per share, is restricted from a sales / transfer perspective, is nil paid and is registered
common, enhanced voting, restricted, nil paid, registered share
statistical area defined by a government agency
identifier for a street in some context (e.g., city, municipality, geographic region)
classification scheme defining a set of classifiers for financial instruments
the ISO 10962 Classification of Financial Instruments (CFI) classification scheme
financial instrument classification scheme
preferred share that confers multiple votes per share, may be exchanged for securities of another issuer, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic stated income and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, enhanced voting, redeemable exchangeable, participating, registered share
has price (or level) that the second barrier activates or deactivates in the case of a double barrier option
has second barrier price
exotic option based on multiple underlying securities
Mountain range options are named after a series of mountains, each representing a different type of contract. Some of the most common include: (a) Altiplano options: Altiplano options provide investors with the features of both a traditional vanilla option along with a coupon payment, (b) Annapurna options: coupon rates are determined by the performance of the basket's worst-performing security when it drops under a specified range, (c) Everest options: Everest options place a long-term limit on an investor's option while offering a payout based on the lagging performers in the basket, (d) Atlas options: this type of option eliminates both the best - and worst - performing stocks in a basket of securities, and (e) Himalayan options: traders receive a payout based on the basket's best performing stock; payouts are provided on multiple dates.
mountain range option
The price of a mountain range option is based on multiple variables, the most important of which are the correlations between the individual securities in the basket. Some options have discrete payout levels, such as double the investment or triple the investment, if certain performance metrics are hit by the underlying securities while the option is in effect. Mountain range options cannot be priced with standard closed-form approaches. These exotic instruments instead require Monte Carlo simulation methods. Effects such as volatility skew, which is found in most options, can be even more pronounced within mountain range options.
These options blend some of the key characteristics of basket-style or rainbow options—both of which have more than one underlying security or asset—and range options with multiyear time ranges. Prices are based on multiple variables - notably the correlations between the individual securities in the basket.
irrevocable written or verbal notice that states that a triggering event has occurred
credit event notice
Notices of certain kinds of credit events are required as a condition of a credit default swap. Such notices are sent from a notifying party (either the buyer or the seller) to the counterparty. They provide information that assists the contract parties in determining whether a triggering credit event has occurred.
terms for the repayment of the principal on a bond
position in some fund, which may be defined in terms of fund units
fund position
bond that is part of a series of bonds formed by selling each interest payment and the principal amount of a bond as separate zero coupon bonds.
sequence of characters uniquely identifying a specific program within the context in which that program is administered
programme identifier
program identifier
ratio of a quantity index of gross output to a quantity index of combined inputs
capital-labor-energy-materials multifactor productivity
Shows the time profile of how productively combined inputs are used to generate gross output. Conceptually, the KLEMS productivity measure captures disembodied technical change. In practice, it reflects also efficiency change, economies of scale, variations in capacity utilisation and measurement errors.
pool of securities organized for the purpose of issuing notes against those securities
interest rate swap in which fixed interest payments on the notional are exchanged for floating interest payments and the two streams of interest payments are in different currencies
fixed float cross-currency interest rate swap
fixed-float cross-currency interest rate swap
fixed float cross currency interest rate swap
redemption provision that specifies the conditions under which the issuer or shareholder may redeem the shares
equity redemption provision
swap lifecycle event, such as a payment or rate reset event, that applies to one leg of a swap
component of a custom commodity basket whose relative importance with respect to other basket constituents is known
appraised value of the collateral for an obligation as of a given date
statistical measure providing the difference (or spread) between two market rates
deposit account that the depositor does not have a right, and is not permitted, to make withdrawals from within six days after the date of deposit unless the deposit is subject to an early withdrawal penalty of at least seven days' simple interest on amounts withdrawn within the first six days after deposit
A time deposit from which partial early withdrawals are permitted must impose additional early withdrawal penalties of at least seven days' simple interest on amounts withdrawn within six days after each partial withdrawal. If such additional early withdrawal penalties are not imposed, the account ceases to be a time deposit. The account may become a savings deposit if it meets the requirements for a savings deposit; otherwise it becomes a demand deposit.
warrant that may be traded over the counter (OTC) or through an exchange
relates an index-linked instrument to a government bond that may be selected by a calculation agent
Fallback Bond means, in relation to an Inflation Index applicable to an Inflation Linked Note, a bond selected by the Calculation Agent and issued by the government or one of the governments (but not any government agency) of the country (or countries) to whose level of inflation the Inflation Index relates and which pays a coupon and/or redemption amount which is calculated by reference to the Inflation Index, with a maturity date which falls on the same day as the Maturity Date of the Inflation Linked Notes, or such other date as the Calculation Agent shall select if there is no such bond maturing on the Maturity Date of the Inflation Linked Notes. If any bond so selected is redeemed, the Calculation Agent will select a new Fallback Bond on the same basis, but selected from all eligible bonds in issue at the time the original Fallback Bond is redeemed (including any bond for which the redeemed bond is exchanged). Note the rate of the fallback bond is used as a substitute for the inflation index if, for example, it is no longer published.
preferred share that confers exactly one vote per share, may be redeemed at the option of the issuer and/or of the shareholder with an extendable redemption date, provides a periodic income whose dividend rate is adjusted through an auction, and is registered
preferred, voting, extendable, auction rate income, registered share
sum of a collection of numbers divided by the number of numbers in the collection
While the arithmetic mean is often used to report central tendencies, it is not a robust statistic, meaning that it is greatly influenced by outliers (values that are very much larger or smaller than most of the values). Notably, for skewed distributions, such as the distribution of income for which a few people's incomes are substantially greater than most people's, the arithmetic mean may not accord with one's notion of 'middle', and robust statistics, such as the median, may be a better description of central tendency.
credit card agreement for a card issued for household, family, or other personal expenditures that is accessed by a borrower's use of a credit card
tradable debt instrument representing a loan in which the issuer owes the holder(s) a debt
Depending on the terms of the contract, the issuer is obliged to pay interest (the coupon) and/or to repay the principal at maturity. The most common bonds are corporate or governmental, typically used to finance specific projects or operations.
relates something, such as an instrument or index, to the currency its value is typically expressed in
This should be the same currency that was declared at the time of issuance.
preferred share that confers less than one vote per share, may be exchanged for securities of another issuer, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic stated income and dividends not paid in any year accumulate, and is registered
preferred, restricted voting, redeemable/exchangeable/extendable, cumulative, registered share
preferred share that confers zero votes per share, may be exchanged for securities of another issuer, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic stated income and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, non-voting, redeemable/exchangeable/extendable, participating, registered share
investment vehicle that tracks a basket of commodities to measure their price and investment return performance
commodity index
preferred share that confers multiple votes per share, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic stated income and dividends not paid in any year accumulate, and is registered
preferred, enhanced voting, redeemable extendable, cumulative, registered share
settlement date rule as defined in the International Money Market (IMM) settlement dates calendar
International Money Market (IMM) settlement date rule
The International Money Market (IMM) is a division of the Chicago Mercantile Exchange (CME) that deals with the trading of currency and interest rate futures and options.
legal document that records the formal terms and conditions of some contract
Written here does not necessarily mean a paper document but includes situations in which the contract is expressed electronically, whether as an electronic representation of a formal document such as in PDF form or as an electronic message, provided in the latter case that the message is expressly given formal contractual standing, for example as indicated in a separate covering agreement between the parties.
a branch of a credit institution whose Head Office is in a third country
indicates the offset from the coupon payment date on which the rate is reset
partnership that has at least two general partners that agree to share in all assets, profits, and financial and legal liabilities of the business
General partnerships are the most basic and common form of partnership world-wide.
relates a given exchange-specific security listing to its issue
preferred share that confers exactly one vote per share, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic stated income, and is registered
preferred, voting, redeemable extendable, fixed income, registered share
rate of exchange between two currencies for settlement at some future point in time, expressed as a premium on the spot rate
party that receives payments in a transaction specified in a contract
corporate action involving the sales of subsidiary business interests or investments
Divestiture is an action or process involving the sale, spinoff, or liquidation of business assets, including product lines, services, subsidiaries, business property, or even an entire business. Companies may pursue a divestment strategy to refocus on their core business, in response to the operating environment in their industry, to raise capital, or to release underperforming assets.
divestiture
financial instrument that can be bought or sold
Securities Exchange Act of 1934, as amended 12 August 2012
A security can be any note, stock, treasury stock, security future, security-based swap, bond, debenture,certificate of interest or participation in any profit-sharing agreement or in any oil, gas, or other mineral royalty or lease, any collateral-trust certificate, preorganization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of deposit for a security, any put, call, straddle, option, or privilege on any security, certificate of deposit, or group or index of securities (including any interest therein or based on the value thereof), or any put, call, straddle, option, or privilege entered into on a national securities exchange relating to foreign currency, or in general, any instrument commonly known as a security, or any certificate of interest or participation in, temporary or interim certificate for, receipt for, or warrant or right to subscribe to or purchase, any of the foregoing; but shall not include currency or any note, draft, bill of exchange, or bankers' acceptance which has a maturity at the time of issuance of not exceeding nine months, exclusive of days of grace, or any renewal thereof the maturity of which is likewise limited.
Some securities may be traded over the counter, or through an exchange, or via some other trading venue such as an electronic trading platform.
Whether a contract or other economic right is a security essentially depends on whether the holder of the contract is acting as an investor who seeks financial benefits based on the work of a promoter or a third party.
In the U.S., the Supreme Court has adopted a flexible and liberal approach in determining what constitutes a security. In its famous decision of SEC v. W.J. Howey Co., 328 U.S. 293, 90 L.Ed. 1244, 66 S.Ct. 1100 (1946), the Court held that land sales contracts for citrus groves in Florida, coupled with warranty deeds for the land and a contract to service the land, were 'investment contracts' and thus securities. The Court stated that [a]n investment contract for purposes of the Securities Act means a contract, transaction or scheme whereby a person invests his money in a common enterprise and is led to expect profits solely from the efforts of the promoter or a third party. 66 S.Ct. at 1103. According to the Court, it is immaterial whether the shares in the enterprise are evidenced by formal certificates or by nominal interests in the physical assets employed in the enterprise. 66 S.Ct. at 1104.
negotiable commodity that is obtained via some industrial process, including construction and manufacturing
industrial resource
date on which credit protection is due to expire as agreed by both parties
has scheduled termination date
debt instrument whereby one party extends money or credit to another party (or parties) with the understanding that the borrowed money will be repaid according to the terms of the contract
netting provision that occurs between two parties, in which mutual obligations are offset to determine a single net payment
bilateral netting provision
data reporting services provider that is authorized to provide the service of reporting details of transactions to competent authorities or ESMA (the European Securities and Markets Authority) on behalf of investment firms
group that has formed some alliance to jointly exercise control over some entity
The types of entity which may enter into such an alliance are the same types of entity as may exercise control in their own right, i.e. independent parties (that is a logical union of natural persons, legal persons and formal organizations).
barrier option applied to currencies or over the counter stocks that works as a binary, or digital option in that it pays out only under defined circumstances, or it is worthless, at expiration
double barrier option
Considered an exotic option, a double barrier option is a combination of two single barrier options, with one barrier above and one barrier below the current price of the underlying. It is a bet by the holder that the underlying asset will move significantly, in the case of a knock-in barrier option, or will move by a very small amount, in the case of a knock-out barrier option, over the life of the contract. Traders use these options when they have an opinion on volatility but not on the direction of the underlying asset's next price move. A barrier option is a type of option where the payoff, and the very existence of the option, depends on whether or not the underlying asset reaches a predetermined price.
preferred share that confers less than one vote per share, may be exchanged for securities of another issuer, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic stated income and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, restricted voting, redeemable/exchangeable/extendable, participating, registered share
an obligation or duty that is enforceable by a court
specifies the initial date on which a delivery notice can be issued
has first notice date
responsible party authorized to sign agreements on behalf of themselves, another person, or an organization
preferred share that confers zero votes per share, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic stated income and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, non-voting, redeemable, participating, registered share
settlement netting provision that is specific to foreign exchange contracts
foreign exchange settlement netting provision
Foreign exchange settlement netting, if between two counterparties, which is also referred to as bilateral settlement netting in this case, can take one of two forms, payment netting or novation netting. Often, one of these two methods will be found in combination with close-out netting in master agreements between trading counterparties. Close-out netting, as distinct from payment or novation netting, provides for contract liquidation procedures in the event that one of the parties defaults under a contract or become bankrupt. Payment and novation netting describe the day-to-day processes of calculating and paying net amounts.
indicates the party that has issued a particular license to some other party
situation in which some party owns and controls something
security-based derivative whose underlier is a debt observable
widely accepted or established way of doing 'something' within some community of practice
the capacity of some natural person to regulate some industry, organization, or product by virtue of some certification program on behalf of some regulatory agency
individual human being, with consciousness of self
person
rate of exchange between two currencies as specified as of some date and time as quoted by a specific source, typically for a spot contract
has spot exchange rate
indicates the cash value of one tick, i.e., the minimum price change of the contract
has tick value
lifecycle stage indicating the status of the MIC code, as specified by the registration authority
participation certificate whose payout is conditional: should the underlying trade above the strike on the observation date, an early redemption consisting of nominal price plus an additional coupon amount is paid
Express certificates offer the possibility of an early redemption combined with an attractive yield opportunity. They have reduced risk compared to a direct investment into the underlying asset(s). With higher risk levels, multiple underlying assets (worst-of) allow for higher coupons or lower barriers; limited profit opportunity (Cap).
express certificate
indicates a strategy by which a given price is determined
has price determination method
investment fund whose fund units are traded on an exchange, much like stocks
exchange-traded fund
ETF
An ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day. Most ETFs track an index, such as a stock, bond, or commodity index.
relates someone to the age required to attain the capacity to engage in certain transactions or be treated legally as an adult in some jurisdiction
is the entity or purpose for which the party is the point of contact
identifies a party which is not signatory to the party but has some role in the overall context defined by the contract.
physical address where communications can be addressed, papers served or representatives located for any kind of organization or person
physical address
An address may be used as an index to the location of a building, apartment, office within an office block, or other structure or parcel of land, often using political boundaries and street names as references, along with other information such as house or building numbers or names. Some addresses also contain secondary elements such as apartment or building numbers, or special codes to aid routing of mail and packages.
Typically, addresses will have only one postcode expressed either as a string value or individual, and only a municipality (individual) or city (string value).
common share that confers less than one vote per share, is unrestricted from a sales / transfer perspective, is nil paid and is registered
common, restricted voting, unrestricted, nil paid, registered share
informal control that involves influence over some party
indicates, with respect to a foreign bank, the governmental entity or entities in the foreign bank's home country with responsibility for the supervision and regulation of the foreign bank
party that receives an offer from something from someone (i.e., an offerer) based on the terms of the offering
system for allocating identifiers to borrowers
Many banks and other financial institutions have internal systems for assigning identifiers to borrowers. In the United States, larger banks may use a Customer Information File (CIF) number, assigned as a part of their federally mandated Customer Information Program (CIP).
fixed coupon bond issued by HM Treasury that guarantees to pay the holder of the gilt a fixed cash payment (coupon) every six months until the maturity date, at which point the holder receives the final coupon payment and the return of the principal
Conventional gilts are the simplest form of government bond and constitute around 75 percent of the gilt portfolio.
measure of the average wage an hourly or salaried worker makes in a given period of time
Average earnings are typically calculated on an hourly, daily, weekly, or monthly basis. They may be expressed as an amount of money or in terms of a percent change with respect to a prior period, depending on the jurisdiction and report.
any legal document which may be used to verify aspects of a person's identity
If issued in the form of a small, mostly standard-sized card, it is usually called an identity card (IC). Countries which do not have formal identity documents may require informal documents. In the absence of a formal identity document, driving licenses can be used in many countries as a method of proof of identity, although some countries do not accept driving licenses for identification, often because in those countries they don't expire as documents and can be old and easily forged. Most countries accept passports as a form of identification. Most countries have the rule that foreign citizens need to have their passport or occasionally a national identity card from their country available at any time if they do not have residence permit in the country.
option trading strategy that involves buying a downside put and selling an upside call that is implemented to protect against large losses, but which also limits large upside gains
collar
share that signifies a unit of ownership in a corporation and represents a claim on part of the corporation's assets and earnings
common share
In the event that the corporation is liquidated, claims of secured and unsecured creditors and owners of bonds and preferred shares take precedence over claims of common share holders.
ordinary share
share that pays dividends at a specified rate and has preference over common shares in the payment of dividends and liquidation of corporate assets
any sale, assignment, lease, license, loan, advance, contribution, or other transfer of any interest in or right to use any property (tangible or intangible) or money, however that transaction is effected, and regardless of whether the terms of the transaction are formally documented
indicates a date on which a stock 'goes ex-dividend', typically about three weeks before the dividend is paid to shareholders of record
Once the company sets the record date, the ex-dividend date is set based on stock exchange rules. If you purchase a stock on its ex-dividend date or after, you will not receive the next dividend payment.
Shares listed on the New York Stock Exchange go ex-dividend four business days prior to the record date.
project that supports broad, sector-specific efforts to reduce environmental impact
Green loans focus on funding projects with direct and measurable environmental benefits (e.g., solar farms, green buildings). Transition loans are for broader initiatives aimed at improving sustainability in traditionally carbon-intensive sectors.
Sustainability-Linked Loans (SLLs): Transition loans share similarities with SLLs, as both tie terms (such as interest rates) to achieving predefined sustainability goals. However, transition loans are specifically framed within the context of long-term decarbonization or sustainability transitions.
Borrowers must demonstrate a credible transition plan, which include: (a) clear sustainability performance targets (SPTs), (b) alignment with recognized climate goals and frameworks (e.g., the Science Based Targets initiative, SBTi), and (c) transparency in reporting progress and outcomes. Third-party verification or certification of the transition plan and its alignment with best practices is often required.
debt instrument that is a written promise by one party to another that commits that party to pay a specified sum on demand or within a specified time frame under specified terms
Promissory notes are generally fully fungible. They may or may not be negotiable.
preferred, non-voting, redeemable exchangeable, adjustable income, registered share
specifies a collection of values that represent planned or projected goals or objectives for some something over time
four-tiered standardized classification or delineation for an organization based on the principal business activity of the organization
Global Industry Classification Standards classifier
financial asset in the form of an instrument pool
identifies someone or something that expedites some event, transaction, conversation or something else in some context
right that give the shareholder higher priority with respect to certain pre-defined dividend payments over other shareholders and that pay out first in the case of liquidation
credit event involving extension of payments beyond the original maturity date of the obligation
maturity extension
As stipulated in the terms and conditions for a bond, for example, the issuer or the bondholder may prolong the maturity date. After extension, the security may differ from original issue (new rate or maturity date). May be subject to bondholder's approval.
division of the government of a state, with separate and independent powers and areas of responsibility so that the powers of one branch are not in conflict with the powers associated with the other branches
guaranty whereby the issuer will not pledge any assets if doing so would result in less security for lender(s) or investor(s)
contract where two parties commit to perform specific actions or obligations towards each other
any financial service in which a third party (the intermediary) matches lenders and investors with entrepreneurs and other borrowers in need of capital
Office of Financial Research (OFR) Annual Report, 2012, Glossary
Often investors and borrowers do not have precisely matching needs, and the intermediary's capital is put at risk to transform the credit risk and maturity of the liabilities to meet the needs of investors.
entry in a registry that conforms to ISO 9362 for the management of BIC codes and related registration information
identification number assigned to financial instruments in Switzerland, Liechtenstein and Belgium, issued by SIX Financial Information, that is the National Securities Identifying Number (NSIN) for securities issued in those countries and is also part of the ISIN for the security it identifies
A VALOR code is between six and nine characters in length and like other securities identification codes (like ISIN, CUSIPs etc). A VALOR is utilized for identification purposes as well as clearing and settlement, similar to an ISIN code, and identifies debt and equity securities.
Valoren Number
Valor Nummer
Valor Code
Valor
Valoren Code
price suggested by a prospective seller at a particular time for a given security
offer price
ask price
offering price
asking price
classifier that distinguishes the kinds of actions and events that may be announced, initiated or carried out by an organization that affects a legal entity or the securities it issues, such as income-oriented events
action classifier
ISO 15022 classifies events as impacting income vs. others. Other classification schemes distinguish between actions that return profits to shareholders, actions that are designed to influence the share price, and actions involving a change in structure to the issuer organization.
agency of a foreign bank established and operating under section 3102 of CFR Title 12, Chapter 32 and section 4 of the International Banking Act of 1978 that is not insured or regulated by the Federal Deposit Insurance Corporation (FDIC)
uninsured federal agency of foreign banking organization
indicates a minimum intended threshold amount of outstanding principal balance of the reference obligation for which the quote should be obtained
has minimum quotation amount
subscription right entitling existing preferred shareholders to subscribe to new securities at a price normally lower than the prevailing market price
preferred share subscription right
exchange/market/trade reporting facility in a specific market/country
ISO 10383, Securities and related financial instruments - Codes for exchanges and market identification (MIC), Third edition, 2012-10-01, confirmed 2018-03-29, clause 2.1
identifies employer in an employment situation
measure of spread, calculated as the average squared deviation of each number from the mean of a data set
indicates the value of something expressed as an amount of money or goods
person that resides in an institution for some reason, due, for example, to hospitalization, rehabilitation, or incarceration
payment card issued by a financial service provider that enables the cardholder to access funds in a demand deposit account
individual assessment resulting in a grade or score and potentially a report describing the score
business day adjustment rule applied to floating-rate note instruments
identifier associated with a Federal Reserve district
a statistical universe for consumer expenditure surveys consisting of people within a household that make joint expenditure decisions
U.S. Bureau of Labor Statistics, http://www.bls.gov/cpi/
In the United States, the CPI-U population, which covers about 88 percent of the U.S. population, covers households in all areas of the United States except people living in rural nonmetropolitan areas, in farm households, on military installations, in religious communities, and in institutions such as prisons and mental hospitals.
municipal bond that is backed by the full faith and credit and general resources of the issuing municipality, including its general taxing authority
clearing house that is organized as a corporation
mini-future certificate that immediately expires if the barrier underlying level is breached during product lifetime
barrier underlying mini-future certificate
identifies a restriction applicable to a given financial instrument or listing
relates an instrument to the date by which the principal must be repaid in full
Depending on the terms of the instrument (debt security, such as a bond, loan, etc.), this may be the date of a single payment of the debt principal or of the completion of scheduled partial redemption payments.
event that occurs during the lifecycle of a swap, where the overall set of events includes those specific to the issuer, front office, middle office, and/or back office processes
the legal capacity to pursue a litigation action in law
interest-bearing bond issued at a deep discount to face value
An original issue discount (OID) is the discount in price from a bond's face value at the time a bond or other debt instrument is first issued. The OID is the amount of discount or the difference between the original face value and the price paid for the bond.
The principal amount accretes over time at a constant accrual rate and is redeemed at full face value at maturity.
relates some collateral to an agreement pledging the asset as security
party that receives or consumes products (goods or services) and has the ability to choose between different products and suppliers
security that can be converted into another security
Convertible securities may be convertible bonds or preferred stocks that pay regular interest and can be converted into shares of common stock (sometimes conditioned on the stock price appreciating to a predetermined level).
Warrants are equity convertible securities. They give the owner the option to buy newly issued shares at a determined exercise price and date.
indicates an amount of money available for an individual or organization to borrow
situation in which a controlled party is affiliated with a controlling party for some period of time
agreement corporation whose charter allows the corporation to engage in international investment banking
relates a regulatory agency to something it controls or supervises the availability of in some market by means of rules and regulations
The Federal Reserve System, whose banks together comprise the central bank of the United States, supervises banking system and regulates the money supply in the US.
indicates the strategy used for the purposes of determining the fair market or present value of something
indicates an optional ceiling (cap) on interest rates on floating rate debts
Rate caps can be viewed as insurance, ensuring that the maximum borrowing rate never exceeds the specified cap level.
indicates a period of time during which the option may be exercised as specified in the terms of the contract
has exercise window
control conferred by the actions of some court, for example in the context of receivership
indicates the date a contract has been signed by all the necessary parties
This may or may not be the 'effective date' of the contract, which may be specified in the body of the document.
strategy for achieving a specific business goal, objective, solution or outcome
classifier for supplemental address information, such as a highway contract route, rural route, building complex, shopping center, condominium complex, mail box, or other similar designation
indicates the initial date in a notional step schedule
preferred share that confers multiple votes per share, may be exchanged for securities of another issuer, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic income whose dividend rate is set periodically, and is registered
preferred, enhanced voting, redeemable/exchangeable/extendable, adjustable income, registered share
indicates the nature of the pricing quotations to be requested from banks and/or dealers when determining the market value of the reference obligation for purposes of cash settlement
has quotation method
financial service provider that provides a central facility for swap data reporting and recordkeeping
Swap data repositories ('SDRs') are new entities created by the Dodd-Frank Wall Street Reform and Consumer Protection Act ('Dodd-Frank Act') in order to provide a central facility for swap data reporting and recordkeeping. Under the Dodd- Frank Act, all swaps, whether cleared or uncleared, are required to be reported to registered SDRs. The Dodd-Frank Act added new Section 21 to the Commodity Exchange Act ('CEA'), governing registration and regulation of SDRs and establishing registration requirements and core duties and responsibilities for SDRs.
is an expression of, gives a tangible or visible form to (an idea, quality, or feeling), makes concrete and perceptible
guarantee that is part of the financial basis by which some legal entity is incorporated
security that is exempt from certain regulatory rules
Some exemptions from the registration requirement include: private offerings to a limited number of persons or institutions; offerings of limited size; intrastate offerings; and securities of municipal, state, and federal governments.
Generally, securities must be filed with the appropriate regulatory agencies in the jurisdiction in which they are sold. The registration forms companies file provide essential facts while minimizing the burden and expense of complying with the law. Not all securities must be registered, however. By exempting many small offerings from the registration process, regulators seek to foster capital formation by lowering the cost of offering securities to the public.
identifier that uniquely identifies something for a given time period, and that may be reused to identify something else at a different point in time
ticker symbol, vehicle license number, such as a vanity plate that can be reassigned and moved from one car to another
If no assignment termination date is provided, the identifier is considered to be assigned and valid. If there is no initial assignment date, then the identifier is assumed to be assigned up until the termination date, if any.
loan provided for the purposes of education, allowing students and parents/guardians to borrow money for college
student loan
Student loans may include loans for graduate and professional education. Student loans may be obtained from government institutions, from private sources such as a bank or financial institution, or from other organizations.
indicates the preferred currency for settlement purposes
This property should only be used in cases where the settlement currency is distinct from the currency in which the instrument is denominated.
party that guarantees, endorses, or provides indemnity for some obligation on behalf of some other party
In some cases, the party acting as guarantor may also be a party to the contract, such as in the case of Fannie Mae or Freddie Mac. In such cases, the same individual would be modeled as having both roles.
specifies the a specific date, such as the end of the last recession (e.g., March 2009) against which the scoped measure is compared
contract terms that specify the conditions under which a contract can be extended
In the case of a debt instrument, an extension may include extending the time allowed for repayment of the principal, the maturity date, and so forth.
preferred share that confers multiple votes per share, has no fixed maturity date, provides a periodic stated income and dividends not paid in any year accumulate, and is registered
preferred, enhanced voting, perpetual, cumulative, registered share
secured loan that is secured with cash or other acceptable collateral (real property, securities or other assets) provided by the borrower as specified in the collateral agreement
collateralized loan
long term term coupon bearing treasury obligation issued in terms of 20 years or 30 years that pays interest every six months until they mature
tradable debt instrument that facilitates the ownership of securities traded in other jurisdictions
Participation notes are required by investors or hedge funds to invest in Indian securities without having to register with the Securities and Exchange Board of India (SEBI). P-Notes are among the group of investments considered to be Offshore Derivative Investments (ODIs) in Indian markets.
participatory note
P-Note
Typically P-Notes are SPVs that are created to allow participation from outside that market. The SPV purchases a security on shore and issues a note that represents that security to offshore investors. They are similar to an ADR but always a debt security.
Depository receipts are widely used in order to allow the trading of debt instruments in jurisdictions other than the one where the original debt instruments were issued
participation note
security whose cash flow characteristics depend upon one or more indices or that have embedded forwards or options or securities where an investor's investment return and the issuer's payment obligations are contingent on, or highly sensitive to, changes in the value of underlying assets, indices, interest rates or cash flows
structured product
A structured product is a pre-packaged structured finance investment strategy based on a single security, a basket of securities, options, indices, commodities, debt issuance or foreign currencies, and to a lesser extent, derivatives. Structured products are not homogeneous - there are numerous varieties of derivatives and underlying assets - but they can be classified under the aside categories. Typically, a desk will employ a specialized 'structurer' to design and manage its structured-product offering.
structured instrument
market-linked investment
collateralized, simple-interest loan that is repaid in monthly installments over a period of typically three to five years, for the purpose of purchasing a vehicle
motor vehicle loan
12 CFR § 228.12, https://www.law.cornell.edu/cfr/text/12/228.12
Many lenders will only approve auto loans for vehicles (i.e., cars, trucks) that are a certain age (typically 5 years or less) due to depreciation of the value of the vehicle. Because an auto loan is a 'secured' type of loan, the vehicle that is being financed is used as collateral (i.e. if the borrower fails to repay the loan, the vehicle may be seized by the lender).
auto loan
unique, 9-digit number that is the standard identifier for legal entities in Canada which are typically a business
service provided by an exchange to facilitate securities trading
preferred share that confers multiple votes per share, may be exchanged for securities of another issuer, whose issuer and/or shareholders have the option to extend the maturity date, that provides the same dividends as common/ordinary shareholders, and is registered
preferred, enhanced voting, redeemable/exchangeable/extendable, normal income, registered share
futures contract whose underlying asset is a basket of securities and/or indices
basket future
value of a given market rate of the end of the business day for a specific date
security restriction applicable to holding the security
financial instrument that confers on its holders certain rights or obligations, whose value is derived from one or more underlying assets
The three major categories of derivatives are (1) forward and future contracts, (2) options contracts, and (3) swaps. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes.
Derivatives can be characterized by whether they are exchange-traded or traded over-the-counter (OTC).
Parameswaran, Sunil. Fundamentals of Financial Instruments: An Introduction to Stocks, Bonds, Foreign Exchange, and Derivatives. John Wiley and Sons (Asia) Pte. Lte., Singapore, 2011.
Derivative contracts owe their availability to the existence of markets for an underlying asset or a portfolio of assets on which such agreements are written. The derivative itself is merely a contract between two or more parties. Its value is determined by fluctuations in the underlying asset. Most derivatives are characterized by high leverage.
Note that the quantity value associated with the derivative represents the quantity of the underlier. The price of the underlier is included in settlement terms.
physical address used to deliver communications to a designated container at a local post office or the local equivalent for the jurisdiction, where mail is held until the recipient collects it, rather than to a given house, building, or other location
calculated date that is defined with respect to the occurrence of some occurrence kind
The 'hasDateValue' property of an OccurrenceBasedDate is not set until the Occurrence happens. The 'triggeredBy' property relates an OccurrenceBasedDate to the OccurrenceKind that gives the meaning of the OccurrenceBasedDate.
rating issuer that is also a rating scale publisher, frequently but not always an independent rating service
a scheme for organizing information and allocating identifiers to regulations
amortization in which the very last payment the last payment due may be a large balloon payment of all remaining principal and interest
collection consisting of a series of prices, each of which has a specific date and time associated with it, for some security
collection of security prices
Note that such a collection is of prices that may be quoted or may be established through analysis, such as an average over a number of markets (composite market) or developed via some pricing model (e.g., matrix pricing).
preferred share that confers less than one vote per share, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic stated income and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, restricted voting, redeemable extendable, participating, registered share
a classifier that specifies the status of the relationship between consolidated entities during the reporting period (active or inactive)
institutionalized and legal power inherent in a particular job, function, or position that is meant to enable its holder to successfully carry out his or her responsibilities, where such power has been delegated through some formal means
This specifically means the authority to make legally binding commitments.
This is always accompanied by an equal responsibility for one's actions or a failure to act.
is the relationship between a party and something it possesses, or over which it exercises some ownership or control or has at its discretion the ability to dispose of it as it sees fit
concatenation of an entity's business number, the 'RC' abbreviation and a 4-digit subaccount number used for reporting corporate income tax
An organization may have more than one tax account through its subunits, this is handled through additional 4-digit subaccount numbers. This is used as both an account and an identifier for the registration.
card verification value specifically for American Express payment cards
return swap in which the change in the level of the index will be equal to the returns generated primarily by the changes in price of each of the contracts that comprise the index
excess return swap
ISDA Disclosure Annex for Commodity Derivative Transactions. See https://globalmarkets.bnpparibas.com/gm/features/docs/dfdisclosures/ISDA_Commodity_Derivatives_Disclosure_Annex_04_2013.pdf
concatenation of an entity's business number, the 'RP' abbreviation and a 4-digit subaccount number used for reporting payroll deductions
An organization may have more than one deduction account through its subunits, this is handled through additional 4-digit subaccount numbers. This is used as both an account and an identifier for the registration.
statistical universe filtered by time and region
A common aim of statistical analysis is to produce information about some chosen population. In statistical inference, a subset of the population (a statistical sample) is chosen to represent the population in a statistical analysis. If a sample is chosen properly, characteristics of the entire population that the sample is drawn from can be estimated from corresponding characteristics of the sample.
index to the specific unit within a secondary unit, such as a building or apartment, at a particular street address
futures contract based on underlying assets excluding commodities
financial future
indicates the party that acts in an advisory capacity to the controlled party
sequence of characters uniquely identifying a customer within the context of some organization
indicates the underlying network for credit card product
credit agreement in which a group of lenders, known as a syndicate, collectively provides a large loan to a single borrower
syndicated loan
A syndicated loan enables pooling of funds from multiple financial institutions, typically under the leadership of one or more arranging banks. These kinds of credit agreements are often used by large corporations, private equity investors and government entities for significant capital needs such as acquisitions, project financing, or to meet operational requirements.
redemption provision giving the holder the right, but not the obligation, to sell a specified amount of the debt instrument (i.e., redeem it), prior to maturity
FIBIM has term "Putable Date" which (by implication, and comparing with definition for "Next Call Date") is presumably a single calendar date in the future, at a given point in time. That does not cover the definition of formal terms defining when and how the issue may be put, which is what is modeled here.
delivery address whose delivery address line uses an abbreviation for the unit or command such as 'CMR', 'PSC', or 'UNIT', or 'HC', followed by the unit identifier, followed by 'BOX' followed by box number, in place of a street address, either 'APO' or 'FPO' as the literal value for the city and the appropriate armed forces subdivision code in place of a subdivision (state) code
lease of a motor vehicle for a fixed period of time at an agreed amount of money
Motor vehicle leasing is commonly offered by dealers as an alternative to a vehicle purchase but is widely used by businesses as a method of acquiring (or having the use of) vehicles for business use, without the usually needed cash outlay. The key difference in a lease is that after the primary term (usually 2, 3 or 4 years) the vehicle has to either be returned to the leasing company or purchased for the residual value.
memorandum and articles of association by which some legal entity is established
This may be the issuance of shares, the existence of some agreement, guaranties and so on.
dispersion swap that is a forward contract on the variability of movements in the price of its underlying equities
equity volatility swap
An equity volatility swap is a measure of the amount by which an asset's price is expected to fluctuate over a given period of time; it is normally measured by the annual standard deviation of daily price changes.
an original document certifying the circumstances of the birth, or a certified copy of or representation of the ensuing registration of that birth
A birth certificate is a vital record that documents the birth of a child. Depending on the jurisdiction, a record of birth might or might not contain verification of the event by such as a midwife or doctor.
any legal person whose regular occupation or business is the provision of one or more investment services to third parties and/or the performance of one or more investment activities on a professional basis
method and commitment to transfer a commodity, currency, security, cash or another instrument as defined in the settlement terms of the contract
delivery method
event related to the imposition or enforcement of a rule, method, formula, etc.
indicates, with respect to a foreign bank, the country in which the foreign bank is chartered or incorporated
indicates the convention used to determine the number of days in a month and days in a year that are counted when performing calculations for yield and price figures
has price and yield day count convention
contractual right that specifies shareholder voting entitlements, such as to elect directors, elect outside auditors, and vote on matters of corporate policy
Voting may involve decisions on issuing securities, initiating stock splits, and making substantial changes in the corporation's operations. Note that a given share may not have voting rights, in which case the number of votes per share would be zero.
market identifier that identifies an exchange/market/trade reporting facility in a specific market/country
commercial bank owned exclusively (except to the extent directors' qualifying shares are required by law) by other depository institutions or depository institution holding companies, the activities of which are limited by its articles of association exclusively to providing services to or for other depository institutions, their holding companies, and the officers, directors, and employees of such institutions and companies, and to providing correspondent banking services at the request of other depository institutions or their holding companies
Depository Institutions Deregulation and Monetary Control Act of 1980, available at https://www.govinfo.gov/content/pkg/STATUTE-94/pdf/STATUTE-94-Pg132.pdf, section 711
Bankers' banks are typically (1) organized solely to do business with other financial institutions (with the exceptions defined herein), (2) owned primarily by the financial institutions with which they conduct business, and (3) do not do business with the general public.
identifies any special period at the start of a regular schedule
party that holds and manages assets for the benefit of another
The trustee is legally obliged to make all trust-related decisions with the beneficiary's interests in mind, and may be liable for damages in the event of not doing so. Trustees may be entitled to a payment for their services, if specified in the trust agreement. In the specific case of the bond market, a trustee administers a bond issue for a borrower, and ensures that the issuer meets all the terms and conditions associated with the borrowing.
provides an approximate value of some asset as of some point in time
indicats the period in days between each reset date and the corresponding settlement date
has settlement date offset
contract that embodies and defines the fund legal form in cases where there is no independent organization
fund contract
classification scheme for set of codes for financial instruments that can be used globally for straight-through processing by all involved participants in an electronic data processing environment
classification of financial instruments code scheme
The ISO 10962 Securities and related financial instruments - Classification of financial instruments (CFI) code was developed as a solution to a number of challenges. One is to establish a series of codes which clearly classify financial instruments having similar features. The other is to develop a glossary of terms and provide common definitions which allow market participants to easily understand terminology being used.
strategy that combines bull and bear spreads with a fixed risk and capped profit
butterfly
These spreads are intended as a market-neutral strategy and pay off the most if the underlying asset does not move prior to option expiration. They involve either four calls, four puts, or a combination of puts and calls with three strike prices. Butterfly spreads pay off the most if the underlying asset price doesn't change before the option expires. The upper and lower strike prices are equal distance from the middle, or at-the-money, strike price.
indicates the maximum (upper boundary) of the total value of the underlying collateral, either at issuance or as of some point in time, at which point the value of given tranche is wiped out
terms defining and the commitment to fulfill cashflow requirements (e.g., interest payments, coupon payments, etc.) for a component of a swap
A three-leg financial swap is a more complex type of swap agreement where three different payment streams (or 'legs') are involved, as opposed to the traditional two-leg swaps (like fixed-for-floating interest rate swaps). This structure can be useful for sophisticated risk management or hedging strategies, particularly when exposure to multiple interest rates or currencies is desired.
A one-leg financing swap (also known as a single-leg financing swap) is a type of financial derivative, typically used by institutional investors or corporations, in which one party makes a series of fixed or floating payments to another party in exchange for a single upfront cash payment or financing.
In most cases, a swap has two legs, one expressing the obligations of the seller and one expressing the obligations of the buyer. However, it is possible to represent more complex swaps, with one, three or more legs. The legs can be almost anything but usually one leg involves cash flows based on a notional principal amount that both parties agree to.
For some swaps this may be a commitment to net up the difference between a strike and an outcome, rather than to make a series of cashflows over time. For credit default swaps there are conditional commitments, contingent on the occurrence of a credit event.
A two-leg financial swap is the most common type of swap agreement, where two counterparties exchange cash flows or obligations based on different financial variables. Each leg represents a stream of payments or flows tied to specific terms, such as fixed or floating interest rates, currencies, or commodities. The classic example of a two-leg swap is the interest rate swap, where one party pays a fixed interest rate while the other pays a floating interest rate.
an event that involves delivery of money in fulfillment of an obligation
preferred share that confers less than one vote per share, has no fixed maturity date, provides the same dividends as common/ordinary shareholders, and is registered
preferred, restricted voting, perpetual, normal income, registered share
indicates that the notional amount decreases through the life of the contract
has amortizing notional amount
ISO 10962:2019, Securities and related financial instruments - Classification of financial instruments (CFI) code, Fourth Edition, 2019-10, clause 6.8.2
ISO 4914:2021(en), Financial services - Unique product identifier (UPI)
sequence of characters uniquely identifying an OTC derivative product that is reportable to a trade repository
At a minimum, the UPI code is applicable to OTC derivative instruments falling under the following categories of the Classification of Financial Instruments (ISO 10962): - Swaps (S) - Forwards (J) - Non-listed and complex listed options (H) - Others (miscellaneous) (M)
The UPI code consists of 12 alphanumeric characters decomposed as follows: - the two-character prefix 'QZ' - nine alphanumeric characters (upper case A-Z and 0-9 only, excluding the vowel characters (A, E, I, O, U) and the character Y) without separators or special characters - one alphanumeric check character (A-Z and 0-9 only, excluding the vowel characters (A, E, I, O, U) and the character Y), calculated using the method specified in Annex C of the specification document.
ratio of a quantity index of gross output to a quantity index of labor input
labor productivity, based on gross output
Shows the time profile of how productively labour is used to generate gross output. Labour productivity changes reflect the joint influence of changes in capital, intermediate inputs, as well as technical, organisational and efficiency change within and between firms, the influence of economies of scale, varying degrees of capacity utilisation and measurement errors.
Gross-output based labour productivity traces the labour requirements per unit of (physical) output. It reflects the change in the input coefficient of labour by industry and can help in the analysis of labour requirements by industry.
security representing an interest in a fund that cannot be traded ontside of the fund itself
non-tradable fund unit
Non-tradable fund units are commonly found in pension funds, insurance pools, or internal benefit plans, where units serve as accounting or entitlement mechanisms without market transferability.
explicit number of days from the adjusted effective or start date to the adjusted termination or end date calculated in accordance with the applicable day count fraction
branch of government that comprises the system of courts that interprets and applies the law in the name of the supranational, national, federal, or regional government, depending on its jurisdiction
The judiciary also provides a mechanism for the resolution of disputes. Under the doctrine of the separation of powers, the judiciary generally does not make law (that is, in a plenary fashion, which is the responsibility of the legislature) or enforce law (which is the responsibility of the executive), but rather interprets law and applies it to the facts of each case.
designation for geographic region administered by a group of indigenous people rather than by a sovereign state or regional governmental entity
relates guaranty to the contract guarantor, i.e., to the legal person providing the guaranty
party to a credit agreement that is obligated to repay the amount borrowed (principal) with interest and other fees according to the terms of the instrument
preferred share that confers zero votes per share, has no fixed maturity date, provides the same dividends as common/ordinary shareholders, and is registered
preferred, non-voting, perpetual, normal income, registered share
organization designated by an external body of financial regulators to assign UPIs and operate a UPI reference data library
unique product identifier service provider
At the time of publication of the ISO 4914 standard, there was only one such provider, the Regulatory Oversight Committee, confirmed by the Financial Stability Board as the International Governance Body for globally harmonised identifiers used to track OTC derivatives transactions.
indicates a party in which a venture capital firm, a buyout firm, or a holding company has invested
indicates the final payment date of a financial instrument, at which point the principal (and all remaining interest) is due to be paid
specialized non-depository lending institution that has broad borrowing and lending powers and may invest in stocks and bonds
An Article XII Investment Company is not an 'investment company' subject to registration under the Investment Company Act of 1940. An Article XII Investment Company may accept credit balances in New York that are incidental to the exercise of its other powers and may accept deposits outside New York with the approval of the Superintendent. Article XII Investment Companies may specialize in commercial or retail sales finance; others are involved in domestic and international commercial and merchant banking.
addendum to the master agreement that governs the exchange of collateral between parties in derivatives transactions
derivative credit support agreement
Note that in the case of a derivative credit support agreement, the beneficiary actually holds the collateral and has the right to ask for additional collateral if its value falls below the threshold agreed upon per the agreement.
code used internationally to classify a merchant
ISO 18245:2003 Retail financial services - Merchant category codes
Values are specified only for those merchant categories that are generally expected to originate retail financial transactions. Criteria for establishing a new category code includes (a) the merchant category is reasonable and substantially different from all other merchant categories currently represented in the list of code values; (b) the merchant category is separate and distinct from all other industries currently represented in the list of code values; (c) the proposal describes a merchant category or industry, and not a process; (d) the minimum annual sales volume of merchants included in the merchant category, taken as a whole, is USD 10 million; and (e) sufficient justification for the addition of a new code value is found.
Merchant categories are organized by the type of business, trade or services supplied. Certain category codes including those for very large businesses, such as airlines and some hotel chains, may be delineated to the point of identifying the business. Merchant category codes and/or the descriptions of the service categories are frequently used in credit card and other banking transactions for analysis, transaction classification, such as for use in promotional rewards, and sometimes tax-related purposes.
amended closing price to reflect a security's value after accounting for any corporate actions, such as stock splits, dividends, and rights offerings
adjusted closing price
A particularly dramatic change in price occurs when a company announces a stock split. When the change is made, the price displayed will immediately reflect the split. For example, if a company splits its stock 2-for-1, the last closing price will be cut in half. That's the adjusted closing price.
preferred share that confers less than one vote per share, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic income whose dividend rate is set periodically, and is registered
preferred, restricted voting, redeemable, adjustable income, registered share
the process of reduction of debt or other costs through periodic charges to assets or liabilities, such as through principal payments on mortgages
qualified measure that is constrained by filters on the statistical population to which it applies
Note that (1) the anchor date reflects the start of the current series, such as 1982-1984 for the CPI, (2) the fixed comparative date might be something like March 2009, if one is comparing a current index against its value at the end of the great recession, (3) the relative comparative date might be something like a month or year ago, depending on the analysis requirements, and (4) the relative comparative period might be a 3 month average prior value, again depending on the analysis requirements.
time of day that an interest rate is reset, as indicated by some interest rate authority or market data provider
Examples include certain rates published by the Federal Reserve Board in their H.15 schedule, which are published at 4:15 pm on business days that are not holidays in the US.
geographic region or subdivision identifier used internally by a country or other region
record about a party in a specific communicative or liaison role
Contact records may include attributes such as name, role, communication channel, and affiliation, They may be found in registries, schemas, systems such as those designed for customer relationship management (CRM), enterprise resource planning (ERP), health information, legal and regulatory compliance and others, as well as personal address books, to support communications, coordination, support, or compliance.
window of time during which averaging of the price of the underlying contract is effective
has Asian tail period
measure of volatility that represents the expected fluctuations of an underlying stock or index over a specific time frame
voting shareholder that owns 100 percent of the voting shares in some legal entity
By virtue of holding 100 percent of the share ownership, the total controlling interest company also holds 100 percent of the controlling equity, if there is a difference. Therefore, it is both a total owner and a total controlling party.
identifies a party that has a given obligation
party that enjoys the benefits of ownership (such as receipt of income) of something even though its ownership (title) may be in the name of another party (called a nominee or registered owner)
The National Credit Union Administration (NCUA) defines a 'beneficial owner' as (1) a single individual with significant responsibility to control, manage or direct a legal entity customer, or (2) each individual, if any, who, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, owns 25 percent or more of the equity interests of a legal entity customer; if a trust owns directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, 25 percent or more of the equity interests of a legal entity customer, the beneficial owner is the trustee.
Use of a nominee (who may be an agent, custodian, or a trustee) does not change the position regarding tax reporting and tax liability, and the beneficial owner remains responsible.
The Financial Action Task Force on Money Laundering (FATF) refers to a 'beneficial owner' as the natural person(s) who ultimately owns or controls a legal entity and/or the natural person on whose behalf a transaction is being conducted. It also includes those persons who exercise ultimate effective control over a legal person or arrangement.
From World Bank Report: In identifying the beneficial owner, the focus should be on two factors: the control exercised and the benefit derived. Control of a corporate vehicle will always depend on context, as control can be exercised in many different ways, including through ownership, contractually or informally.
indicates the target security (i.e., the one in the range) has a higher priority than the security in question
preferred share that confers multiple votes per share, whose issuer and/or shareholders have the option to extend the maturity date, that provides the same dividends as common/ordinary shareholders, and is registered
preferred, enhanced voting, redeemable extendable, normal income, registered share
specifies a reference (baseline) recurrence interval for which a given measure applies
a party to whom a debt should be paid, or to whose order a bill of exchange, note, or check is made payable, or who receives or will receive a payment from a payer in partial or complete fulfillment of an obligation
arithmetic mean between bid and offer prices
mid price
ISO 10962, Securities and related financial instruments - Classification of financial instruments (CFI) code, Fifth edition, 2021-05
bond that is issued together with one or more warrant(s) attached as part of the offer, the warrant(s) granting the holder the right to purchase a designated security, often the common stock of the issuer of the debt, at a specified price
This concept is needed primarily to support cases where the bond issuer is the issuer of the warrant.
identifies events of a given occurrence kind, typically as they occur in a schedule
preferred share that confers zero votes per share, may be redeemed at the option of the issuer and/or of the shareholder with an extendable redemption date, provides a periodic income whose dividend rate is adjusted through an auction, and is registered
preferred, non-voting, extendable, auction rate income, registered share
indicates a relative price with respect to the face value at the time an instrument matures, namely par, discount or premium
specifies the reporting period for which a report or something else, such as a market rate or economic indicator, applies
preferred share that includes an option for the holder to convert the shares into a fixed number of common shares after a predetermined date
Most convertible preferred stock is exchanged at the request of the shareholder, but sometimes there is a provision that allows the company, or issuer, to force conversion. The value of a convertible preferred stock is ultimately based on the performance of the common stock.
reverse mortgage that provides a lump sum payment to the borrower at closing, with no ability for the borrower to receive additional funds under the mortgage at a later date
Normally, closed-end reverse mortgages are first liens.
a legal person that has been granted authorisation in accordance with Article 10 to provide and execute payment services throughout the European community
regulatory agency that controls the monetary policy, regulation and supply of money in some country or group of countries
a central bank, the executive branch of a government, a central bank for several nations, a currency board
indicates something, such a goal or objective, that is dealt with by
financial instrument and credit agreement evidencing monies owed by the issuer to the holder on terms as specified
not-for-profit corporation whose objective is specific to some fundamental set of beliefs and practices generally agreed upon by a number of people, and that is incorporated under the law
Often religious corporations are recognized under the law on a sub-national level, for instance by a state or provincial government. The government agency responsible for regulating such corporations is usually the official holder of records, for instance a state department of corporations.
relates a party which directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control by another party to that party
a unique entity that is legally or financially responsible for the performance of financial transactions, or has the legal right in its jurisdiction to enter independently into legal contracts, regardless of whether it is incorporated or constituted in some other way (e.g. trust, partnership, contractual). This excludes natural persons, but includes governmental organizations and supranationals.
trading date rule defined as the last trading day / expiration day of the Canadian Derivatives Exchange (Bourse do Montreal Inc.), three month Bankers' Acceptance Futures (Ticker symbol BAX), the second London banking day prior to the third Wednesday of the contract month
International Money Market (IMM) Canadian Dollar (CAD) trading date rule
If the determined day is a bourse or bank holiday in Toronto or Montreal, the last trading day shall be the previous bank business day, per the Canadian Derivatives Exchange BAX contract specification. The above description implies a Date Roll Rule which is presumably referenced by referring to this rule, so that when this rule is referenced, there would be no Date Roll Rule defined in the FpML message. Semantically, this is still a Date Roll Rule, specifically a "Roll forward" rule with no modification (the third Wednesday of a month will never roll forward to a day in the following month so no Modified rule is required).
preferred share that confers zero votes per share, may be exchanged for securities of another issuer, provides a periodic income whose dividend rate is adjusted through an auction, and is registered
preferred, non-voting, exchangeable, auction rate income, registered share
specifies the amount of the call on the first par call date as specified in the call schedule
indicates someone that is employed by the legal person
preferred share that confers exactly one vote per share, may be exchanged for securities of another issuer, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic stated income, dividends not paid in any year accumulate, and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, voting, redeemable/exchangeable/extendable, cumulative participating, registered share
combined with the ZIP + 4 code, the delivery point code provides a unique identifier for every deliverable address served by the USPS
The delivery point digits are almost never printed on mail in human-readable form; instead they are encoded in the POSTNET delivery point barcode (DPBC) or as part of the newer Intelligent Mail Barcode (IMB).
event on which an initial rate for a given contract is set, which may be relative the the occurrence of some other contract lifecycle event, such as the execution date
bond whose principal adjusts over time with changes in an index
The principal on variable principal bonds adjusts line with an index such as inflation or GDP. For example, for a bond linked to the CPI, if inflation rises two percent the principal increases by 2 percent. The coupon rate is typically fixed. The best-known example is TIPS or Treasury Inflation Protected Bonds, which are linked to the CPI. TIPs offer a real or inflation adjusted rate of return.
bond with a feature whereby the issue can be partially called for amounts that are at the discretion of the issuer
amount of interest that has been incurred, as of a specific date, on a loan or other financial obligation but has not yet been paid out
accrued interest
Accrued interest refers to the interest that has accumulated on a bond or other financial obligation since the last interest payment up to, but not including, the settlement date. This interest is earned over time but not yet paid out to the bondholder, for example. If this is a dirty price, this is the amount of accrued interest that is included in the price. This is therefore passed on to the purchaser of the bond or debt instrument.
an enterprise (or part of an enterprise) that operates from a single physical location
The physical location of a certain economic activity - for example, a factory, mine, store, or office. An individual establishment is generally classified by having one NAICS code associated with it for statistical purposes, whereas an enterprise may be classified by multiple NAICS codes. The statistical structure is defined based on the operating structure and the accounting data produced by that entity. A given location may only need to publish revenues, whereas an operating unit (establishment) has employment statistics, etc. An establishment is defined as a producing unit at a single geographical location at which or from which economic activity is conducted and for which, at a minimum, employment data are available. In the case of a home-based business, the actual physical location would be specified as two distinct institutional units - as a household from a personal living and consumer perspective and as an establishment / operating unit due to the statistics required of the business.
preferred share that confers multiple votes per share, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic income whose dividend rate is adjusted through an auction, and is registered
preferred, enhanced voting, redeemable, auction rate income, registered share
non-bank financial service provider based outside of the United States of which 25 percent or more of whose voting shares are owned or controlled by an entity that is based in the United States, or of which a majority of its directors are controlled by such domestic entity, or of which 25 percent or more of whose voting shares are held by trustees for the benefit of the shareholders or members of such domestic entity
international non-bank subsidiary of a domestic entity
Note that capital protection in this case refers to the nominal amount only, and not to the purchase price. The value of the product may fall below its capital protection value during its lifetime; the coupon amount is dependent on the development of the underlying asset; periodic coupon payment is expected.
capital protection certificate with coupons
basket of reference obligations are credit default swap instruments
basket of credit default swaps
Note that the CDS Index is broken down into tranches depending on different types of credits, for example, investment grade and high yield. Tranches are defined by attachment and detachment points for the index loss distribution. It means that when default events occur the lower-level tranches absorb the loss up to the detachment point, before moving to the next senior tranche.
a party that owes a debt or other obligation to another party
rate swap in which one party pays an amount calculated using an inflation rate index, and the other party pays an amount calculated using another inflation rate index, or a fixed or floating interest rate
inflation swap
party that originates a contract and is identified as the first party to that contract, in the event that the contract distinguishes any party as such
The principal to a contract is typically the originator and, in the case of a security, the issuer. In law, the principal is the party that has the primary responsibility in a liability or obligation, as opposed to an endorser, guarantor, or surety.
preferred share that has no fixed maturity date
asset-backed security based on a pool of bonds securitized using a controlled amortization structure
controlled amortization asset-backed security
Controlled-amortization ABS resemble corporate bonds with a sinking fund. After a predetermined 'revolving' period during which only interest payments are made, these securities attempt to return principal to investors in a series of defined periodic payments that usually occur over less than a year.
Revolving debt (primarily credit card receivables, but also HELOCs, trade receivables, dealer floor-plan loans and some leases) may be securitized using a controlled amortization structure. This is a method of providing investors with a relatively predictable repayment schedule, even though the underlying assets are nonamortizing. A risk inherent in this kind of ABS is an early amortization event.
formal organization that is a legal entity (artificial person) distinct from its owners, created under the jurisdiction of the laws of a state or nation
corporation
A corporation is managed by or under the direction of a board of directors, which generally determines corporate policy. Officers manage the day-to-day affairs of the corporation.
A corporation has three distinguishing characteristics: (1) separation of ownership from management and general liability, i.e., its liability to creditors is limited to its resources, unlike some partnerships and sole proprietorships, (2) the ability to negotiate contracts and own property, and (3) transferable ownership, irrespective of changes in membership or the lifetimes of its stockholders.
indicates the convention used to determine how the redemption is allocated over the set of bond holders
has partial redemption allocation convention
objective that reflects pursuit of a financial benefit that may be realized when the amount of revenue gained from a business activity exceeds the expenses, costs and taxes needed to sustain that activity
Any profit that is gained goes to the business's owners, who may or may not decide to spend it on the business.
option giving the buyer (holder) the right, but not the obligation, to buy or sell (depending on whether it is a call or a put) a bond at a certain price on or before a specified date
bond option
legal document that states the objectives, risks and terms of an investment
There are many variations, including offering memorandum, which is typically used in the context of a private placement, offering statement, which has slightly different meanings depending on the context (for securities, for bonds, etc.) and so forth. This concept is intended to act as a more abstract parent for these more nuanced concepts.
specifies the date on which something is published
A release date is typically a date fixed in advance for the release of a film, recording, document, report, or product or publication.
relates the redemption provision of a debt instrument to one-time provision that may be exercised by the issuer under certain circumstances
indicates the exercise convention specified for the option
situation in which some party has the power to direct or strongly influence the direction of the management and policies related to something
Control may be direct (explicit) or indirect (implicit), derived through ownership of voting shares, beneficial ownership, other ownership relations, through provisions of a contract, or otherwise.
contractual element that is not legally binding on any party to the agreement
license that allows the holder to conduct business or carry out a specific profession within some jurisdiction for some period of time
fixed leg that specifies fixed interest amounts and terms for the payment of that interest
This may be the funding leg of some swaps (i.e. one party agrees to pay fixed interest amounts in exchange for whatever is the other leg) or it may be one or both sides of an interest rate swap, where the two parties exchange different interest payment streams.
specifies the maximum amount of credit that may be borrowed with respect to a specific agreement (e.g. for line of credit)
party that provides goods or services that some party wants or needs, especially over a long period of time
A supplier may be distinguished from a contractor or subcontractor, who commonly adds specialized input to deliverables.
any service provider that is licensed to perform a legally binding function and has been legally empowered to act on behalf of another party
17 CFR 45.1, Definitions - see the definition of agent
Note that third-party agent is defined as a service provider (organization) acting in an agency capacity, such as a law firm, accountancy, or investment bank. This is distinct from the concept of an individual (licensed agent), for example one who works for a broker-dealer, that is a registered agent licensed to sell securities.
a strip that represents the non-principal portion of the monthly payments on the underlying debt instrument, such as a bond
An interest-only strip can be reintegrated into other synthetic or engineered products. For example, interest-only strips can be pooled to create or make up a portion of a larger collateralized mortgage obligation (CMO), asset-backed security (ABS) or collateralized debt obligation (CDO) structure.
interest-only strip
An interest-only strip holder is interested in rising rates and no prepayment, as prepayment would cause them forfeit future interest payments and receive nothing from the return of the principal.
IO strip
fixed reference point within a series or timeline
It is an explicit date chosen to provide context or structure for analyzing data or events.
contract provision that triggers a default under one contract if the borrower defaults on another related obligation
cross default provision
Cross default provisions are commonly found in loans, bond indentures, syndicated loans, and other instruments such as certain master agreements (e.g., derivatives transactions master agreements).
credit facility that has yet to be confirmed as a source of financing for the borrower
uncommitted credit facility
financial service provided by a financial institution to a merchant or other business, including but not limited to managing financial transactions via a secure channel
Example merchant services include credit and debit card processing, check guarantee and conversion services, point of sale (PoS) systems, gift card and loyalty programs, online transaction processing, etc.
specifies the quantity value from which something is subtracted; the value that is diminished
weighting function derived from the relative market capitalization (share price times the number of shares outstanding) of the companies tracked by an index
capitalization-based weighting function
legally enforceable benefit or entitlement arising from a contract, agreement, or instrument, in which an entity holds specified rights or obligations related to the performance, use, or benefit of something, without necessarily holding ownership
Contractual interest may include rights to income, access, use, or participation, and is governed by the terms and conditions of the underlying contract. It may be transferable or limited, and can coexist with or be independent of ownership rights.
Contractual interests differ from ownership interests in terms of (1) the source of rights, which are specified in an agreement or contract in the case of contractual interests, and in terms of title or equity with respect to ownership, (2) control, which is typically limited at best in the case of contractual interest, and (3) transferability, which depends on the terms of the contract. Examples of contractual interest include fund units, leaseholds, annuities, and rights to certain services, whereas shares, real estate, and assets of a trust reflect ownership interest.
scheme defining a set of codes for classifying merchant services
ISO 18245 provides a set of merchant category codes that are used internationally. Some countries, regional governments, banks, and other large organizations extend the basic codes with custom additions to fit business needs.
action that is initiated by a market, such as a securities exchange, that affects a legal entity or the securities it issues and may have a material impact on that entity's stakeholders, such as shareholders and creditors
market action
default event that is repairable
soft credit event
If the default is not repaired within a grace period, then a failure to repair (failure to pay) credit event is triggered, potentially as a hard default.
an exchange rate expressed as a premium on the spot rate for the currency pair
contract that may be replaced by another contract, and in that event, extinguishes the rights and obligations in effect under the original contract with those in the new agreement
Novation is different from assignment in the following ways: (1) novation is a consensual transfer of contractual rights and obligations, while an assignment can transfer only obligations and does not require the consent of the benefiting party, and (2) novation terminates the original contract, but assignment does not.
In general, novation means consensual substitution of a party or obligation in the original contract with a new party or obligation in the successor contract. The new party takes on the rights and obligations of the original party. The corresponding novation agreement must be signed by the transferor, the transferee, and the counterparty (the other contracting party). Novation is frequently used in mergers and acquisitions to replace any outstanding relationships or rights and obligations of the organization being subsumed with relationships or obligations of the acquiring entity. It is also commonly used with respect to loan rescheduling.
realization of the lifecycle of a specific contract
preferred share that confers multiple votes per share, may be redeemed at the option of the issuer and/or of the shareholder with an extendable redemption date, provides the same dividends as common/ordinary shareholders, and is registered
preferred, enhanced voting, extendable, normal income, registered share
an area, sector, or development within a larger geographic area
This URB descriptor, commonly used in urban areas of Puerto Rico, is an important part of the addressing format, as it describes the location of a given street.
market data provider and reporting party that reports and/or publishes data on securities transactions, including required regulatory reporting for such transactions, and as such is subject to regulatory supervision
physical asset defined as land together with any structures that are permanently attached to that land, such as houses, trees, fences and improvements
real property
Real property typically encompasses both the physical land and everything that lies above, below, or on its surface, including any fixed structures, natural resources, and rights or interests (e.g., mineral rights). There are cases, such as condominiums, in which the interior of the structure is owned by a party that may not own the land. There are also cases in which certain long-term leases have similar characteristics to ownership, but are time-bound.
Real property may be classified according to its general use as residential, commercial, agricultural, industrial, or special purpose. This term is sometimes used synonymously with 'real estate', though not in all circumstances under US law.
parcel
pool-backed security wherein the risk associated with the pool has been uncoupled from the risk associated with the originating institution through a special purpose vehicle
Collateralized debt obligations (CDOs), synthetic financial instruments, collateralized bond obligations (CBOs), and syndicated loans are examples of structured finance instruments.
structured finance instrument
Structured finance instruments represent a form of securitization technology which can be defined by three key characteristics: (1) pooling of financial assets, such as loans, bonds, or credit-default swaps; (2) de-linking of the credit risk of the asset pool from the credit risk of the originating firm, usually through use of a finite-lived, stand-alone special purpose vehicle (SPV); and (3) issuance by the SPV of "tranched" liabilities backed by the asset pool. Structured finance instruments are typically presented to large financial institutions or companies with complicated financing needs that are unsatisfied with conventional financial products.
structured finance
equity that represents an ownership interest in some entity, but may or may not take the form of shareholders's equity
Typically an investment in some entity may take the form of shares (issued or privately held), i.e., shareholders' equity, or it may take the form of some capital amount which is not reflected in shareholders' equity. In each case, there would typically be a contractual basis for the investment setting out what controls or other benefits accrue to the investor.
delivery address whose delivery address line uses the abbreviation 'HC', followed by the route identifier, followed by 'BOX' followed by box number, in place of a street address
observation (measurement) of a key performance indicator measured at specific date and time
observed indicator value
redeemable preferred share whose redemption date can be modified
redeemable preferred share with extendable redemption date
specifies a predetermined price at which the buyer purchases the credit default swap contract
has contract price
global depositary receipt that represents ownership in the securities of a non-European company that trades in European financial markets
European depositary receipt
EDR
A European depositary receipt is a European equivalent of the original American depositary receipt (ADR). The EDR is issued by a bank in Europe representing securities traded on an exchange outside of the bank's home country.
age at which someone acquires the rights and responsibilities of an adult in some jurisdiction
convention by which dividends are provided to shareholders
Distribution may be by payment of a monetary amount or by reinvestment, as specified by the board of directors at the time a decision to issue a dividend is made.
standardized classification or delineation for an organization, or possibly for a security representing an interest in a given organization, per some scheme for such delineation, by industry
basket of goods and services whose quantity and quality are held fixed for some period of time
measure of what an asset is worth, i.e. with respect to its current price
intrinsic value
This measure is arrived at by means of an objective calculation or complex financial model. In financial analysis this term is used in conjunction with the work of identifying, as nearly as possible, the underlying value of a company and its cash flow. In options pricing it refers to the difference between the strike price of the option and the current price of the underlying asset.
links something, typically an agreement, contract, document, or process, with a date on which it is scheduled to be or was terminated
floating leg of a correlation swap that pays an amount based on the observed average correlation of the prices of a collection of underlying products
correlation leg
American depositary receipt level
securities transaction for which there is no requirement to register the transaction with a regulatory agency
Examples include non-issuer transactions in outstanding securities, other isolated non-issuer transactions, certain unsolicited / de minimis transactions, fiduciary transactions, transactions with financial institutions, private placement transactions that meet certain conditions, and so forth.
depositary receipt that is established without the company's cooperation
unsponsored depositary receipt
For an unsponsored ADR, a depositary entity can issue certificates when there's heavy demand from investors for ownership in a specific company from abroad. The issuing entity is normally a broker-dealer that owns common stock in the company. Because they're issued without the consent or cooperation of the foreign company, unsponsored ADRs generally trade over-the-counter (OTC)—rather than on a stock exchange. Also, shareholder benefits and voting rights may not be extended to the holders of these particular securities. Many large global corporations use unsponsored ADRs to attract American capital. For example, American investors can invest in Royal Mail PLC, a postal and delivery service company from the United Kingdom that was founded by Henry VIII. The company's unsponsored ADR trades OTC under the ticker symbol ROYMY.
product that is readily available from merchandise in stock, or can be quickly and easily configured to order, not specially designed or custom-made
commercially available off-the-shelf product
preferred share that confers less than one vote per share, may be exchanged for securities of another issuer, provides a periodic stated income, and is registered
preferred, restricted voting, exchangeable, fixed income, registered share
party empowered as an official representative by a regulatory agency to investigate and review specified documents for accuracy and truthfulness
Black's Law Dictionary, see http://thelawdictionary.org/examiner/
dollar-weighted average measuring the age of the individual loans in a mortgage pass-through or pooled security
weighted average loan age
WALA
A weighted average loan age (WALA) may apply to pool-backed securities such as Ginnie Mae or Freddie Mac securities. The WALA is measured as the time in months since the origination of the loans, with the weighting based on each loan's size in proportion to the aggregate total of the pool.
This is defined by the issuer. WALA is more official, not an analysis from a vendor. This changes but the values are relayed by the issuer on an ongoing basis. Investopedia explains Weighted Average Loan Age - WALA The weighted average age will change over time as some mortgages get paid off faster than others. Based on the issuer of the mortgage-backed securities (MBS), the WALA may be weighted on the remaining principal balance dollar figure, or the beginning notional value of the loan. The flip side of the WALA is the weighted average maturity (WAM), which is a dollar-weighted measure of the months remaining until the principal amounts are completely repaid on each loan in the pool.
credit default swap whose underlying reference obligation is limited strictly to syndicated secured loans, rather than any type of corporate debt
loan credit default swap
LCDS
rate-based derivative whose underlier is some economic indicator
party that collects principal and interest payments on behalf of the lender
In cases where a loan has been securitized, the servicer is also responsible for forwarding payments to investors, filing reports with credit-rating agencies and investors, and so forth.
indicates the amount of the call on the first call date as specified in the call schedule
foreign exchange agreement between two parties involving an exchange of two currencies at agreed fixed rates: a) on the spot settlement date and b) a reverse exchange on a later specified date
currency spot forward swap
indicates the lowest market price above which a share may be redeemed
identifies the service provider that provisions the service or facility
branch that resides outside of the United States whose parent is located outside of the United States
branch that resides in the United States, and whose parent is also located in the United States
indicates the monetary amount required for cash settlement
has settlement amount
grower, maker, fabricator, or manufacturer of some product or other good
preferred share that confers less than one vote per share, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic income whose dividend rate is set periodically, and is registered
preferred, restricted voting, redeemable extendable, adjustable income, registered share
collection of managed investments that are all managed by a single investment institution
swap leg whose paying party is obligated to make payments from time to time over the term of a swap calculated by reference to a fixed annual rate or consisting of at least one payment of a fixed amount
2006 ISDA Definitions
section of an exchange/market/trade reporting facility that specialises in one or more specific instruments or that is regulated differently
It is not required to have a MIC registered for all segments of a market, only for those segments that need to be identified.
A market segment MIC can only be registered if an operating/exchange MIC already exists.
ISO 10383, Securities and related financial instruments - Codes for exchanges and market identification (MIC), Third edition, 2012-10-01, confirmed 2018-03-29, clause 2.2
relates a legal person to the context in which it owns a formal organization
organization that serves a public purpose and is closely tied to a government, but is not a government agency
An instrumentality is a non-governmental agency that acts independently but whose obligations are backed by a government because of its role in providing a public service. Many instrumentalities are private companies, and some are chartered directly by government. Instrumentalities are subject to a unique set of laws that shape their activities. Certain organizations, such as Sallie Mae in the United States, may be considered instrumentalities from some perspectives but not others. Sallie Mae's status was changed in 2004, when it was privatized, and since that time it is no longer considered a government-sponsored enterprise (GSE).
preferred share that confers multiple votes per share, may be exchanged for securities of another issuer, provides a periodic stated income, and is registered
preferred, enhanced voting, exchangeable, fixed income, registered share
a numbering system that allows a credit, debit, or other card to be identified as having been issued by a particular financial institution
The issuer identification number (IIN) is a six digit number that is unique to a single card issuer. The number is only used to identify the card issuer, and is not used to identify a particular product, service, or region associated with the card issuer.
IINs are issued directly by the American Banker's Association (ABA) in the US. The ABA is the Registration Authority (RA) for ISO/IEC 7812, which defines the IIN, in other words.
indicates the person(s) or organization(s) responsible for determining the contents of a basket
carries out or puts into effect, fulfills
a statistical universe consisting of all private households in Canada, with the exception of soldiers on military bases, people living on First Nations reserves, institutionalized persons, and households living in the rural areas of the three northern territories
high-level management executive of a corporation or other organization, hired by the board of directors or the business owner(s), charged with certain operational responsibilities, and who has the authority to act on behalf of the organization, including the authority to enter into contracts on behalf of the organization
Corporate officers may include a Chief Executive Officer (CEO), Chief Financial Officer (CFO), president, vice president(s), and in some cases a Chief Operating Officer (COO), Chief Compliance Officer (CCO), or other executive responsible for a critical function in the organization.
In banking, corporate officers have the legal capacity to execute some documents and make certain decisions on behalf of the institution due to the nature of the business. The level of authority varies depending on the role the officer plays, however, and based on bank policy. In large institutions, corporate officers may include loan/lending officers, those in certain supervisory roles, and others with varying degrees of authority, and frequently they are given a 'vice president' title, particularly if they are customer facing. Hiring and other decisions related to such corporate officers may be delegated to more operational levels, rather than by the board directly, with respect to such personnel.
Note that in most cases in the United States, corporate officers, especially those with signatory capacity and other fiduciary responsibilities must be employees, especially with respect to financial institutions and other highly regulated domains. There are cases, however, when an independent contractor or professional services provider may play the role of a corporate officer, such as a 'CFO for hire', which is a common practice in start-up organizations.
third party that holds an asset or funds before they are formally transferred from one party to another party, per the terms of a contract, within some specified time period and/or when a triggering event occurs
escrow agent
Use of an escrow agent is one possible mechanism that may be used in some cases, as specified in a credit default swap contract, for delivery purposes.
relates an account statement to the amount of money available in that account at the end of the statement period
measure that is an amount of money specified in monetary units
identifies a duty or obligation that a given party has taken on
legal agent designated by some party to represent them and act on their behalf under a formal agency agreement
Agency capacity, as specified in an agency agreement, may include power of attorney, the ability to act as an agent in certain kinds of transactions such as real estate, tax, audit or other financial or legal transactions, as a fiduciary, including as a trustee or legal guardian, for service of process, and so forth.
preferred share that confers less than one vote per share, may be exchanged for securities of another issuer, provides a periodic income whose dividend rate is adjusted through an auction, and is registered
preferred, restricted voting, exchangeable, auction rate income, registered share
option where the option buyer has the right to buy or sell specified commodities or commodity related index at a fixed price or formula, on or before a specified date
commodity option
organization that uses its surplus revenues to further achieve its purpose rather than distributing its surplus income to the organization's owners (directors, investors, and equivalents) as profit / dividends
The nonprofit landscape is highly varied, although many people have come to associate NPOs with charitable organizations. Although charities do comprise an often high profile or visible aspect of the sector, there are many other types of nonprofits. Overall, they tend to be either member-serving or community-serving. Member-serving organizations include mutual societies, cooperatives, trade unions, credit unions, industry associations, sports clubs, retired serviceman's clubs and other organizations that benefit a particular group of people - the members of the organization. Typically, community-serving organizations are focused on providing services to the community in general, either globally or locally: organizations delivering human services programs or projects, aid and development programs, medical research, education and health services, and so on.
In the US, a nonprofit organization is an association that explicitly is not required to pay taxes on its income. Such organizations are qualified for this exemption due to their socially desirable objective (e.g. hospitals, charitable organizations, etc., or because they meet some set of requirements as determined by the US Internal Revenue Service.
preferred share that confers exactly one vote per share, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic stated income and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, voting, redeemable, participating, registered share
Loan Market Association (LMA) Green Loan Principles, available at https://www.icmagroup.org/assets/documents/Regulatory/Green-Bonds/LMA_Green_Loan_Principles_Booklet-220318.pdf.
use of proceeds provision specifying that funds obtained through financing, such as through a credit agreement, offering, warrant, or other instrument are intended to be used for Green Projects (including other related and supporting expenditures, including research and development)
All designated Green Projects should provide clear environmental benefits, which will be assessed, and where feasible, quantified, measured and reported by the borrower, per requirements outlined in the LMA Green Loan Principles (GLP). Where funds are to be used, in whole or part, for refinancing, it is recommended that borrowers provide an estimate of the share of financing versus refinancing. Where appropriate, they should also clarify which investments or project portfolios may be refinanced, and, to the extent relevant, the expected look-back period for refinanced Green Projects. A green loan may take the form of one or more tranches of a loan facility. In such cases, the green tranche(s) must be clearly designated, with proceeds of the green tranche(s) credited to a separate account or tracked by the borrower in an appropriate manner. The GLP explicitly recognise several broad categories of eligibility for Green Projects with the objective of addressing key areas of environmental concern such as climate change, natural resources depletion, loss of biodiversity, and air, water and soil pollution. This non-exhaustive list, set out in Appendix 1, is intended to capture the most usual types of projects supported, and expected to be supported, by the green loan market. However, it is recognised that definitions of green and green projects may vary depending on sector and geography
a monetary price quoted by some publisher on a given date
relates a contract, such as a debt instrument or credit agreement, to one or more parties that are financing the debt
credit union that has a state affiliation
organization that assumes the day-to-day administration and management of a family's affairs
Family offices are often privately held companies set up to handle investment and wealth management for wealthy families.
financial entity engaged in a broad range of banking-related activities as permitted under the Gramm-Leach-Bliley Act of 1999
Can be a domestic or foreign domiciled holding company
These activities include: insurance underwriting, securities dealing and underwriting, financial and investment advisory services, merchant banking, issuing or selling securitized interests in bank-eligible assets, and generally engaging in any non-banking activity authorized by the Bank Holding Company Act. The Federal Reserve Board is responsible for supervising the financial condition and activities of financial holding companies. Similarly, any non-bank commercial company that is predominantly engaged in financial activities, earning 85 percent or more of its gross revenues from financial services, may choose to become a financial holding company. These companies are required to sell any non-financial (commercial) businesses within ten years.
basket of debt instruments that may be relevant for companies with international operations, often permitting debt to be incurred by a non-guarantor restricted subsidiary
local lines of credit debt basket
party that is recognized as the ultimate parent of a given organization world-wide
lifecycle that defines the evolution of a trade, from initiation through settlement
The trade life cycle covers the period of time over which a trade is initiated, typically as a part of a broader deal, is consumated, processed and executed, is settled or closed for other reasons, and is reported. Parts of a trade lifecycle may include or overlap with the lifecycle of one or more contracts.
entry, including a date or date and time, among multiple non-regularly-recurring entries in a schedule
The cmns-dt;hasDate property may be used to reify a date, if it is important to do so for a given application, or if not and typically, the inherited cmns-dt;hasObservedDateTime property may be used together with a cmns-dt;CombinedDateTime value, as long as the resulting schedule is consistent in using one or the other.
The Date of an AdHocScheduleEntry can be an ExplicitDate or any kind of CalculatedDate, such as: * An OccurrenceBasedDate -- a Date that itself is defined by an Occurrence (see the Occurrences ontology) * A RelativeDate - a Date relative to another Date, such as T+3 * A SpecifiedDate - a Date that is defined by an arbitrary rule
Other ontologies can extend AdHocScheduleEntry as needed. In particular, the Occurrences ontology extends AdHocScheduleEntry to consist of occurrences (events) of a given OccurrenceKind. The meaning is that an ad hoc schedule entry comprises a date and an event which is scheduled to occur on that date.
indicates the party that exercises authority or influence over something
value assessment that estimates the amount of money some real property is worth
The valuation uses one or more methodologies and is conducted by an appraiser or technology with a logical model that performs the same function.
credit agreement permitting the use of real estate, equipment or another asset, such as a vehicle, by the owner of that asset (the lessor) to a user (the lessee) for a specific period of time in return for payment as specified in the agreement
The lessor is the legal owner of the asset, while the lessee obtains the right to use the asset in return for rental payments. The lessee also agrees to abide by various conditions regarding their use of the property or equipment. For example, a person leasing a car may agree to the condition that the car will only be used for personal use.
limited service financial institution that raises funds by selling certificates called 'investment shares' and by accepting deposits
Often called Morris Plan banks or industrial loan companies, industrial banks are distinguished from commercial loan companies because industrial banks accept deposits in addition to making consumer loans. Industrial banks differ from commercial banks because they do not offer demand deposit (checking) accounts. Industrial banks are not regulated by the Federal Reserve.
economic indicator representing measure of the rate of change over time in the prices of products sold as they leave the producer
element of a collection that is associated with a date and time
Note that the use of several options for the representation of a date and time stamp enables extensions for milliseconds, nanoseconds using an xsd:string that has the format of an xsd:dateTime datatype but extends the level of granularity consistently. An example of where this is required is to represent prices that change multiple times in a given day.
The use of custom datatypes is outside the OWL 2 RL profile and so users should consider commenting out the restriction on hasObservedDateTime altogether or change the data range to rdfs:Literal in applications that are constrained to OWL 2 RL.
contract terms established by a derivatives exchange that apply to any listing of a futures contract on that exchange.
standardized futures listing terms
Individual listings will take on these standard terms but they are not contractual terms of the futures contract, they are facts about that listing on that exchange.
a survey conducted on a regular basis that presents analytical information focused on the employment characteristics of a given statistical area
measure of the average weekly wage an employee makes over the reporting period
preferred share that confers less than one vote per share, may be redeemed at the option of the issuer and/or of the shareholder with an extendable redemption date, provides a periodic stated income and dividends not paid in any year accumulate, and is registered
preferred, restricted voting, extendable, cumulative, registered share
security for which MiFID reporting is required
MiFID regulated security
A MiFID requlated security is one that is traded on a MiFID regulated market and for which certain additional reporting requirements apply. Markets in Financial Instruments Directive (MiFID), which is a European regulation, issued by the European Securities and Markets Authority (ESMA), that aims to increase transparency across the European Union's financial markets and standardize regulatory disclosures required for firms operating within the EU.
indicates the party that possesses and has at least partial control of something, regardless of ownership
preferred share that confers zero votes per share, may be redeemed at the option of the issuer and/or of the shareholder, provides the same dividends as common/ordinary shareholders, and is registered
preferred, non-voting, redeemable, normal income, registered share
loan granted based on the strength of the borrower's credit history or reputation in the community
an event associated with the call schedule for a debt instrument
the end date of a specific calculation period
Note that this is not necessarily the same as the day before the next period's start date. Calculation schedules specify periods of time, with a start and an end as well as a duration, with the end date being determined by some convention or published list of dates. FpML for CalculationPeriod 'A type defining the parameters used in the calculation of a fixed or floating rate calculation period amount. This type forms part of cashflows representation of a swap stream.'
the extent to which an individual or organization is unprotected and open to damage, danger, risk of suffering a loss, or uncertainty
Examples include financial exposure, credit exposure, legal exposure, credit rating exposure, reputational exposure, and so forth.
identifies a convention regarding how a date should be handled when it falls on a day that is not a business day, such as a weekend or holiday
party that is legally recognized as having the right to possess, the privilege to use, and ability to transfer any rights or privileges associated with something, as permitted by law
kind of event that is either scheduled or triggered by something, such as a related financial event, that causes a calculation to be performed
A calculation event may be prescriptive, that occurs within a specified period, or ad hoc.
A calculation event related to a debt instrument might be a rate reset event, calculation of interest subsequent to a rate change, an amortization calculation, calculation of interest and/or recalculation of principal due to a late payment, etc. A calculation event related to an investment might involve the adjustment of the number of shares owned, such as a redemption or dividend related event.
specifies an amount of money that triggers a failure to pay, repudiation/moratorium or restructuring event
has default threshold amount
indicates an optional lower bound on interest rates on floating rate debts
strongly suggests or involves as a logical consequence based on some set of observations, facts, or events
preferred share whose redemption date can be extended at the issuer or holder option
An extendable preferred share may be redeemed at the option of the issuer and/or of the shareholder with an extendable redemption (meturity) date.
investment company which is engaged or proposes to engage in the business of issuing face-amount certificates of the installment type, or which has been engaged in such business and has any such certificate outstanding
An investor may enter into a contract with an issuer of a face amount certificate to contract to receive a stated or fixed amount of money (the face amount) at a stated date in the future. In exchange for this future sum, the investor must deposit an agreed lump sum or make scheduled installment payments over time. Face amount certificates are rarely issued these days, as most of the tax advantages that the investment once offered have been lost through changes in the tax laws.
controlling party that possesses, either directly or indirectly, the power to direct or cause the direction of the management and policies of a legal person, whether through the ownership of a majority of voting securities, by contract, or otherwise
Electronic Code of Federal Regulations, Title 17, Chapter 1, Section 49.2
links a party in the role of purchaser to a party from which they have made or are planning to make a purchase
element, such as an arrangement, provision, requirement, rule, specification, and standard that forms an integral part of an agreement
identifies an address that is officially recorded with some government authority and at which legal papers may be served
event that has a monetary impact and is documented in the records associated with an account
financial institution that accepts deposits primarily from individuals and channels its funds primarily into residential mortgage loans
relates something (e.g. an occurrence) to something that is used as an input to some activity or process
an undertaking whose business is to receive deposits or other repayable funds from the public and to grant credits for its own account as defined by the European Banking Authority (EBA)
basket of debt instruments whose constituents are contracts entitling a renter the temporary use of an asset and, in accounting terms, has asset ownership characteristics
capitalized lease obligation debt basket
A capitalized lease obligation basket is increasingly broadly drafted to include indebtedness incurred to finance the purchase, improvement, repair, renewal etc. of property (including the purchase of stock of a person owning such property).
survey conducted on a regular basis that presents analytical information related to the general population of a given statistical area with respect to labor force, employment, unemployment, persons not in the labor force, hours of work, earnings, and other demographic and labor force characteristics
interest rate swap in which the two streams of interest payments are in different currencies
preferred, non-voting, redeemable, auction rate income, registered share
publication including a list of products available for sale with their descriptions and possibly prices
event recognized by an entry in the records of an account
project that contributes to environmental sustainability by addressing climate change, conserving natural resources, reducing pollution, or promoting ecological balance
Examples include: renewable energy projects (e.g., solar, wind, hydroelectric power), green buildings certified by recognized standards (e.g., LEED, BREEAM), sustainable water and wastewater management systems, pollution reduction technologies and systems, sustainable forestry and agriculture initiatives, circular economy projects, such as recycling or waste-to-energy facilities, low-carbon transportation infrastructure (e.g., electric vehicle charging stations, public transit projects), and the like.
The borrower must demonstrate that the project meets predefined eligibility criteria for green financing. These criteria are usually aligned with the taxonomy or standards set forth by the Green Loan Principles, the EU Taxonomy for Sustainable Activities, or other regional or international guidelines.
To qualify as a green project within a green loan: (a) the project must meet use-of-proceeds requirements, meaning that funds must be exclusively allocated to activities that qualify as green, (b) the borrower must establish clear processes for evaluating and selecting eligible projects, (c) there must be transparency in how funds are managed and allocated, often verified through audits or certifications, and (d) the borrower must report regularly on the environmental impact of the project, typically through measurable metrics (e.g., tons of CO₂ avoided, energy saved).
Green projects must align with established green finance principles, such as the Green Loan Principles (GLP) issued by the Loan Market Association (LMA), or other recognized sustainability frameworks.
indicates a period of time after a dividend payment becomes due, before the issuer is subject to penalties
indicates that the notional amount increases through the life of the contract
has accreting notional amount
guaranty that takes the form of some asset that is pledged by a borrower to a lender (usually in return for a loan)
In some cases, the lender may require the borrower to place pledged assets such as cash or securities in a separate account that the lender controls.
credit agreement in which the principal and accrued interest may be periodically repaid or exchanged
Examples include revolving lines of credit, commercial loans, construction loans, residential mortgages and so forth.
commodity that can be bought or sold in some marketplace
classifier that specifies the overall payment status for shares issued
When a company issues shares upon incorporation or through an initial or secondary issuance, shareholders are required to pay a set amount for those shares. Once the company has received the full amount from shareholders, the shares become fully paid shares.
financial service, typically provided to small businesses that are not large enough to have an internal finance organization, that involves managing payment of wages to employees
Payroll services typically include printing of employee pay checks, direct deposit of wages to employee bank accounts, calculation and withholding of employee taxes, calculation and payment of corporate payroll taxes and fees with appropriate government authorities (such as Social Security in the US), filing government quarterly and annual reports, and so forth. They may also include management of retirement and savings plans, health benefits, timekeeping, automated integration with the business' accounting system, etc.
price of the final trade of a security at the end of a trading day on a given exchange
official closing price
A stock's closing price is the standard benchmark used by investors to track its performance over time.
end-of-day price
address component that provides additional information that is important to ensuring proper delivery of communications
Supplemental components include post office box information, rural route and highway contract route information, private mailboxes, and so forth, that are not part of a conventional street address.
designator used, together with an identifier, for a post office box
In the U.S., the preferred designator is 'PO BOX'.
post office box designator
a classifier for a sector of the economy used for price indices focused on major commodities sold by manufacturers in Canada
links a derivative, such as an option or entitlement, to any exercise terms that are specified therein
has exercise terms
preferred share that confers less than one per share, may be exchanged for securities of another issuer, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic stated income and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, restricted voting, redeemable exchangeable, participating, registered share
swap leg of a rate-based swap based on a floating interest, floating inflation or fixed interest rate
rate-based leg
preferred share that confers multiple votes per share, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic stated income, dividends not paid in any year accumulate, and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, enhanced voting, redeemable extendable, cumulative participating, registered share
any office or any place of business of a foreign bank located in any State of the United States at which deposits are received established and operating under section 4 of the International Banking Act of 1978 that is not insured or regulated by the Federal Deposit Insurance Corporation (FDIC)
uninsured federal branch of foreign banking organization
An uninsured branch does not accept retail deposits and need not apply for federal deposit insurance.
legal document issued by a financial services provider that enables the cardholder to access the funds in the customer's designated bank accounts, or through a credit account and make payments by electronic funds transfer and access automated teller machines (ATMs)
For purposes of Payment Card Industry Data Security Standard (PCI DSS), a payment card is any payment card/device that bears the logo of the founding members of PCI SSC, which are American Express, Discover Financial Services, JCB International, MasterCard, or Visa, Inc.
The term payment card includes credit cards, debit cards, and stored-value cards, as well as payment through any distinctive marks of a payment card (such as a credit card number). A payment card is issued under an agreement that provides standards and mechanisms for settling the transactions between a merchant acquiring bank or similar entity and the providers who accept the cards as payment.
legal holding restriction that specifies where holders of a security may be domiciled
upper bound on the total amount of money that a lender believes a party has the ability to repay an obligation when due, as of some point in time
The notion of borrowing capacity is related to management decisions pertaining to credit, i.e., the creditworthiness of the borrower, loan amount, risk tolerance, and so forth, and may be reassessed from time to time depending on the type of credit agreement and regulatory requirements. Determining borrowing capacity is typically done as a part of loan origination, especially for residential mortgages.
relates a pooled fund to a parent fund
is sub-fund of
links something, typically an agreement, contract, document, or perishable item, with an expiration date
card verification value specifically for JCB payment cards
links an agreement, contract, or legal entity to a date on which it is scheduled to be sold
has intended liquidation date
explicit date, i.e., the day, month and year, on which an individual was born
commodity derivative that includes, without limitation, any swap for which the primary underlying notional item is a physical commodity, or the price, or behavior of the price, or the level of a commodity index, or other aspect related to a physical commodity
commodity swap
CFTC glossary
Commodity swaps typically involve the exchange of a floating commodity price for a set price over an agreed-upon period.
Commodities that can be swapped include: energy. metal, agriculture, environmental, freight, polypropylene products, fertilizer, paper, single and multiple commodity indexes and baskets, and multi-commodity assets where each leg references a different commodity.
customizes, provides, or outfits something required for use in delivering a service
commercial bank that facilitates payment and settlement of financial transactions, such as check clearing or facilitating trades between the sellers and buyers of securities or other financial instruments or contracts
survey conducted on a regular basis that presents analytical information related to businesses and government agencies, in order to provide detailed industry data on employment, hours, and earnings of workers
financial service in which the insurer promises to provide compensation for specific potential future losses in exchange for a periodic payment
Insurance providers invest the compensation they receive in order to make a profit. In general, insurance transfers risk from individuals or organizations to a larger pool of individuals or organizations that are better able to mitigate that risk.
specifies the details of a contract provision allowing extension of some aspect of the contract
Typically a contract extension refers to the termination date, coverage period, or, in the case of a security, may refer to extension of repayment or maturity dates.
individual designated by government decree to lead, or participate in some capacity in a government body
terms for repayment of the principal for a bond as a single payment covering the whole principal amount
(of a situation or event) includes (something) as a necessary part or result
indicates the legal form that the fund takes
has legal structure
warrant that permits the holder to acquire a specified amount of an equity instrument during a specified period at a specified price
equity warrant
An equity warrant typically enables a buyer to purchase shares of capital stock issued by the corporation whose equity is the underlying asset.
company warrant
functional entity that provides a central point for depositing financial instruments ('securities'), for example, bonds and shares
CSDs' clients are typically financial institutions themselves (such as custodian banks and brokers) rather than individual investors.
obligation to deliver something in order to satisfy a claim or debt
delivery obligation
A delivery obligation is the responsibility of one party to deliver goods, services, instruments, money, or other specified items to another party, typically as outlined in an agreement. Failure to do so may result in breach of contract if the obligation is specified as such, which may have further legal ramifications.
situation that realizes an agreement between parties participating in a voluntary action of buying and selling goods and services
Deutsche Bank Presentation on the Lifecycle of a Trade, available at http://www.slideshare.net/ahaline/23512555-tradelifecycle
Trading activities typically include (a) regularly underwriting or dealing in securities; interest rate, foreign exchange rate, commodity, equity, and credit derivative contracts; other financial instruments; and other assets for resale, (b) acquiring or taking positions in such items principally for the purpose of selling in the near term or otherwise with the intent to resell in order to profit from short-term price movements, and (c) acquiring or taking positions in such items as an accommodation to customers or for other trading purposes. (Source: Instructions for Preparation of Consolidated Reports of Condition and Income (FFIEC 031 and 041), Schedule RC-D - Trading Assets and Liabilities, 2013.
The advent of money as a medium of exchange has allowed trade to be conducted in a manner that is much simpler and effective compared to earlier forms of trade, such as bartering. In financial markets, trading also can mean performing a transaction that involves the selling and purchasing of a security.
The seller must deliver the commodity sold to the buyer; the buyer must pay the agreed purchase price, which could be in the form of other goods or services, on the agreed date.
corporation whose issued shares are all held by a family or a small group of investors and, therefore, cannot be bought by the public
For British or Commonwealth companies, a privately held company limited by shares is a type of company incorporated under the laws of England and Wales, Scotland, certain Commonwealth countries and the Republic of Ireland. It has shareholders with limited liability and its shares may not be offered to the general public, unlike those of public limited companies. Limited by shares means that the company has shareholders, and that the liability of the shareholders to creditors of the company is limited to the capital originally invested, i.e. the nominal value of the shares and any premium paid in return for the issue of the shares by the company. A shareholders personal assets are thereby protected in the event of the company's insolvency, but money invested in the company will be lost. A limited company may be private or public. A private limited companys disclosure requirements are lighter, but for this reason its shares may not be offered to the general public (and therefore cannot be traded on a public stock exchange). This is the major distinguishing feature between a private limited company and a public limited company. Most companies, particularly small companies, are private. Private companies limited by shares are required to have the suffix Limited (often written Ltd or Ltd.) or Incorporated (Inc.) as part of their name, though the latter cannot be used in the UK or the Republic of Ireland. In the Republic of Ireland, Teoranta (Teo.) may be used instead, largely by Gaeltacht companies. Cyfyngedig (Cyf.) may be used by Welsh companies in a similar fashion.
investment vehicle designed to support a nonprofit mission, whose objectives include environmental stewardship and/or social responsibility in addition to financial performance
Common examples include endowment funds (permanently invested, only earnings are spent), operating funds (used for day-to-day expenses), and special project funds (earmarked for particular initiatives).
nonprofit fund
A nonprofit fund is a pool of financial resources that is established and managed by a nonprofit organization to support its mission and activities, organized for charitable, educational, religious, cultural, or other purposes recognized as serving the public good. Some nonprofit funds are restricted by donors for a specific use (such as an endowment for scholarships), while others are unrestricted and can be used at the nonprofit's discretion.
collection of events, observations, or other occurrences and the associated dates and/or times when they will be done
The overall period covers the entire DatePeriod of the Schedule, from the earliest Date to the final Date of the Schedule. Schedules may be ad hoc, essentially a list of dates and events without any consistency in the durations between events, regular, in which case there is a consistently recurring interval between events, or a combination of the two. There may be a single overall period, or more than one if the schedule is extended for some reason.
non-governmental organization that has the power to create and exercise some degree of regulatory authority over an industry or profession in some country or group of countries
preferred share that confers exactly one vote per share, has no fixed maturity date, provides a periodic stated income and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, voting, perpetual, participating, registered share
any issuer which: (a) is or holds itself out as being engaged primarily, or proposes to engage primarily, in the business of investing, reinvesting, or trading in securities; (b) is engaged or proposes to engage in the business of issuing face-amount certificates of the installment type, or has been engaged in such business and has any such certificate outstanding; or (c) is engaged or proposes to engage in the business of investing, reinvesting, owning, holding, or trading in securities, and owns or proposes to acquire investment securities having a value exceeding 40 per centum of the value of such issuer's total assets (exclusive of Government securities and cash items) on an unconsolidated basis
In the US, all investment company offerings are subject to the Securities Act of 1933, which requires the investment company to register with the Securities Exchange Commission (SEC) and to give all purchasers a prospectus. Investment companies are also subject to the Investment Company Act of 1940, which sets forth guidelines on how investment companies must operate.
An investment company is organized as either a corporation or as a trust. Individual investors' money is then pooled together in a single account and used to purchase securities that will have the greatest chance of helping the investment company reach its objectives. All investors jointly own the portfolio that is created through these pooled funds, and each investor has an undivided interest in the securities.
option giving the buyer (holder) the right, but not the obligation, to buy (via a call option) or sell (via a put option) the underlying fixed income assets specified at a pre-determined price (i.e., the strike price, fixed or calculated), on or before a specified date (the expiration date)
fixed income option
Fixed income options, or debt options, are derivatives contracts that use bonds or other fixed-income securities as their underlying asset.
system for allocating classifiers to organizations by industry sector
Examples include the North American Industry Classification System (NAICS) and Standardized Industry Classification (SIC) in the U.S. and Canada, and the NACE (Nomenclature Générale des Activités Économiques dans les Communautés Européennes) in the EU, developed by governments to classify industries. They also include commercial classification schemes, such as the Global Industry Standard Classification (GICS) developed jointly by Morgan Stanley Capital International (MSCI) and Standard and Poor's, and competing schemes including the Industry Classification Benchmark (ICB) system, maintained by Dow Jones and London's FTSE Group, among others.
common share that confers exactly one vote per share, is unrestricted from a sales perspective, is nil paid and is registered
common, voting, unrestricted, nil paid, registered share
indicative spot buying market rate as observed by the reporting source
the scheme defining the Standard Industrial Classification (SIC) Code List
standard industrial classification scheme
Standard Industrial Classifications are four-digit codes that categorize companies by the type of business activities they engage in. These codes were created by the U.S. government in 1937 to facilitate analysis of economic activity across government agencies and within industries. They were mostly replaced in 1997 by a new system of six-digit codes called the North American Industry Classification System (NAICS). The new codes were adopted in part to standardize industry data collection and analysis in between Canada, the United States and Mexico which had entered into the North American Free Trade Agreement. Note that certain organizations, such as the Securities and Exchange Commission (SEC) still use SIC codes for some purposes.
corporate action involving information provided by the issuer having no accounting/financial impact on the holder
notification
registration authority that is responsible for maintaining a registry of business entities
A business registry may include any government-managed registry for registering a business, such as a state department of corporations in the US, as well as other registries such as a local operating unit (LOU) for registration of legal entity identifiers (LEIs). Any sanctioned registration authority as defined by the Registration Authorities List, published by GLEIF, is a business registration authority in this sense.
interest rate swap in which the two streams of interest payments are in the same currency
common share that confers exactly 0 votes per share, is unrestricted from a sales perspective, is partially paid and is registered
common, non-voting, unrestricted, partly paid, registered share
preferred share that confers zero votes per share, has no fixed maturity date, provides a periodic stated income and dividends not paid in any year accumulate, and is registered
preferred, non-voting, perpetual, cumulative, registered share
financial service that involves acceptance of electronic payments by a variety of payment methods including credit card, bank-based payments such as direct debit, bank transfer, and real-time bank transfer based on online banking
debt instrument issued by the United States Department of the Treasury that carries a full faith and credit guarantee
master agreement covering derivatives transactions to be carried out between the parties to this contract
Related to conditions precedent that may apply: "Each obligation of each party under Section 2(a)(i) is subject to (1) the condition precedent that no Event of Default or Potential Event of Default with respect to the other party has occurred and is continuing, (2) the condition precedent that no Early Termination Date in respect of the relevant Transaction has occurred or been effectively designated and (3) each other applicable condition precedent specified in this Agreement. " In the above, the Obligations defined under Section 2(a)(i) of the Master Agrement is the obligation to make each payment or delivery defined in a Confirmation for a transaction carried out under this Master Agreement.
Sample preamble to one of these: "EXAMPLE BANK, a Michigan banking corporation and SAMPLECOMPANY US, INC. a Delaware corporation have entered and/or anticipate entering into one or more transactions (each a "Transaction") that are or will be governed by this Master Agreement, which includes the schedule (the "Schedule"), and the documents and other confirming evidence (each a "Confirmation") exchanged between the parties confirming those Transactions. "
derivative master agreement
The ISDA Master Agreement (Multicurrency-Cross Border version published in 1992) enables trading counterparties to include foreign exchange transactions under a global cross-product close-out netting master agreement. Because there are significant differences in market practices between the derivatives markets and the international foreign exchange spot and forward markets, parties to the ISDA frequently incorporate the ISDA FX and Currency Options Definitions and further tailor the ISDA Schedule to reflect standard market practice for the foreign exchange products.
short-term zero coupon treasury obligation with a maturity ranging from one to twelve months
The pricing of T-bills is unique among U.S. government debt issues. Treasury bills are offered in multiples of $100 and in terms ranging from a few days to 52 weeks. Rather than providing interest payments as Treasury Bonds or Notes do, T-bills are sold at a discount, and the entire return is realized upon maturity. The price of a bill is determined at auction. The annualized interest rate earned on T-bills is equal to the difference between the purchase price and maturity value, divided by the maturity value.
indicates the jurisdiction governing the contract, as agreed by all parties
As modeled, this relationship combines two slightly different senses in which a Jurisdiction may be named in some Contract: the jurisdiction under whose laws the contract is deemed to be in force, and the jurisdiction under which the parties agree to submit in the event of any dispute resolution. ScopeNote: One thing to tease out is whether 'Dispute Resolution' and other forms of 'Governing Law' are one and the same thing or not. Dispute Resolution is uncontroversial, the question is whether there are other implications to Governing Law or if it's the same thing. For instance I may undertake to behave as though I were responsible to a particular authority i.e., a particular set of statutes.
In a written contract this is generally identified, for example, as Governing Law, namely the jurisdiction in which any disputes arising from the contract are to be resolved.
indicates the party that submits something
investment firm that, on an organised, frequent, systematic and substantial basis, deals on its own account by executing client orders outside a regulated exchange, MTF or OTF without operating a multilateral system
systematic internaliser
systematic internalizer
share that confers less than one vote per share
restricted voting share
debt obligation issued by a regional governmental entity
A municipal security is typically a bond, note, warrant, certificate or other similar obligation issued by a state or local government or their agencies or authorities (such as cities, towns, villages, counties or special districts or authorities). A prime feature of most municipal securities is that interest or other investment earnings on them are generally excluded from gross income of the bondholder for federal income tax purposes. Some municipal securities are subject to federal income tax, although the issuers or bondholders may receive other federal tax advantages for certain types of taxable municipal securities. Some examples include Build America Bonds, municipal fund securities and direct pay subsidy bonds.
current market price of an option contract
option premium
The option premium is the income received by the seller (writer) of an option contract to another party. In-the-money option premiums are composed of two factors: intrinsic and extrinsic value. Out-of-the-money options' premiums consist solely of extrinsic value. For stock options, the premium is quoted as a dollar amount per share, and most contracts represent the commitment of 100 shares.
specifies an identifier for the entity that generated a unique transaction identifier
Note that the range of is identified by must be that entity's LEI in the context of a UTI.
any person doing business, whether or not on a regular basis or as an organized business concern, in one of the following capacities: (1) currency dealer or exchanger, (2) check casher, (3) issuer of traveler's checks, money orders, or stored value, (4) seller or redeemer of traveler's checks, money orders, or stored value, (5) money transmitter, or (6) postal service
This definition excludes banks and persons registered with or examined by the Securities and Exchange Commission or the Commodities Futures Trading Commission.
schedule of events, including but not limited to payment events, rate reset events and others that will occur over the lifetime of the credit agreement
This is a schedule of actual dates and events that are terms of the contract.
preferred share that confers multiple votes per share, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic stated income, dividends not paid in any year accumulate, and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, enhanced voting, redeemable, cumulative participating, registered share
obligation to notify a counterparty of any changes in account details
Example text: "Either party may change its account for receiving a payment or delivery by giving notice to the other party at least five Local Business Days prior to the scheduled date for the payment or delivery to which such change applies unless such other party gives timely notice of a reasonable objection to such change." Note that the notice period is given as a fact about the general kind of obligation which is Master Agreement Change notification Obligation.
account change notification obligation
specifies the length of time, typically in weeks, that people classified as unemployed have been continuously looking for work
credit event that relates to an individual credit agreement or debt instrument (reference obligation)
obligation-specific credit event
warrant that gives the holder the right, but not the obligation, to buy (call warrant) or to sell (put warrant) an underlying asset at a specified price (the strike or exercise price) by a predetermined date, issued by the issuer of the underlying instrument
traditional warrant
vanilla warrant
guaranty provided by at least two parties, jointly and severally
time span that a particular trading venue is open
trading day
RTH
In the United States, and with respect to common stock in particular, trading day means any day on which the stock is traded on the principal market, or, if the principal market is not the principal trading market for the common stock, then on the principal securities exchange or securities market on which the common stock is then traded, provided that 'Trading Day' shall not include any day on which the common stock is scheduled to trade on such exchange or market for less than 4.5 hours or any day that the common stock is suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time) unless such day is otherwise designated as a trading day in writing by the holder.
regular trading hours
By convention it is sufficient to provide a value for hasOpeningDateTime, with hasClosingDateTime being optional.
unique identifier given to identify a specific real property in some jurisidiction
connects a given customer account to another customer account
bond payable from the incremental increase in tax revenues realized from any increase in property value and other economic activity, often designed to capture the economic benefit resulting from a bond financing
Tax increment bonds, also known as tax allocation bonds, often are used to finance the redevelopment of blighted areas.
account whose terms and conditions are defined in a card agreement that is represented by a payment card
formal confirmation that codifies the terms and conditions specific to a lifecycle event with respect to the overall transaction between the parties
indicates the organization that the limited partner participates in
interest rate on a debt security that the issuer promises to pay to the holder until maturity, expressed as an annual percentage of the face value
strategy for making a product or service available, or for distributing funds, such as in the form of a dividend or coupon
party responsible for making payments in a transaction specified in a contract
indirect shortcut derived from and pointing into, a greater volume of values, data, information or knowledge
lease that must be reflected on an organization's balance sheet as an asset and as a corresponding liability
In the United States, such leases must be reported per Statement 13 of the Financial Accounting Standards Board. Generally, this applies to leases where the lessee acquires essentially all of the economic benefits and risks of the leased property.
electronic funds transfer (EFT) service involving the transfer of funds across national borders, that may also involve currency conversion
international electronic funds transfer service
assets pooled by investors whose share capital remains separate from the assets of the vehicle
collective investment vehicle
A fund is an entity created to pool money from multiple investors - often referred to as limited partners. Each investor makes an investment in the fund by purchasing an interest in the fund entity, and the adviser uses that money to make investments on behalf of the fund.
Collective investment vehicles are typically organized and operated by management companies, banks, or trust companies. Shares or units are issued in the form of unit trusts, mutual funds, or other similar contracts. Common kinds of funds include pension funds, insurance funds, foundations, and endowments. Such pools are often invested and professionally managed, including investment pools, umbrella pools, share class pools, etc.
credit event triggered as a result of an obligation-specific default
obligation default
legal person that corresponds to an administrative division, administrative unit, administrative entity or country subdivision (or, sometimes, geopolitical division or subnational entity), that has the capacity to incur debt, issue contracts, and enter into relations with other similar entities
A country may be divided into provinces, which, in turn, are divided into counties, which, in turn, may be divided in whole or in part into municipalities; and so on.
exotic option consisting of a number of digital barrier options that pay a coupon if a pre-determined level of the underlying or basket of underlyings is reached
A three-year commodore option with annual barriers would have three potential payoffs. The first would pay at the end of the first year and would be dependent on the pre-determined barrier being reached or exceeded. For example, if the underlying or basket of underlyings reached or exceeded 102% of its initial level at the end of year one, a coupon of 6% would be paid. At the end of year two, if the underlying reached or exceeded 104% of its initial level, another 6% coupon would be paid. The coupon in the final year would be 6% if the underlying reached or exceeded 106%. The coupon should exceed the performance level of the underlying, otherwise the investor would achieve the same result by investing directly in the underlying.
commodore option
Sometimes the digital barrier increases with the number of years since the trade began. All of the options are active from the start of the trade.
futures contract whose underlying asset is at least one equity security, specifically a publicly issued and traded share
equity future
indicates the aggregate value of all shares held by shareholders
A corporation can, at any time, issue new shares up to the full amount of authorized share capital.
interbank rate that is the interest rate at which participating banks lend money
date on which an assessment process was completed
has date of assessment
contract in which one party makes an offer that can only be accepted through performance rather than a return promise
In a unilateral, or one-sided, contract, one party, known as the offeror, makes a promise in exchange for an act (or abstention from acting) by another party, known as the offeree. If the offeree acts on the offeror's promise, the offeror is legally obligated to fulfill the contract, but an offeree cannot be forced to act (or not act), because no return promise has been made to the offeror. After an offeree has performed, only one enforceable promise exists, that of the offeror.
functional business entity that produces and/or sells goods or services
An enterprise (a private firm, government, or nonprofit organization) can consist of a single establishment or multiple establishments. All establishments in an enterprise may be classified in one industry (e.g., a chain), or they may be classified in different industries (e.g., a conglomerate).
preferred share that confers less than one vote per share, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic income whose dividend rate is adjusted through an auction, and is registered
preferred, restricted voting, redeemable, auction rate income, registered share
event reflecting the actual payment of interest
exotic option that is fully specified with respect to a set expiry date, underlying asset and other parameters, purchased and paid for on initiation, but that becomes active at a set activation date with a strike price determined at the time of activation
For example, assume that two parties agree to enter into a call forward start option on XYZ stock. It is September and they agree that the forward start option will activate on January 1 at the money. That means on January 1 the strike price for the option will be the price that stock is trading at on that day. The option will expire in June. The exact strike price is unknown, but the parties do know the strike and underlying's price will be the same at activation. They can look at current six-month options (January to June) and assess volatility to determine a premium for the option. They agree to trade one contract, equivalent to 100 shares of the underlying stock. They decide on a premium of $40, or $4,000 for the contract ($40 x 100 shares). The call buyer agrees to pay the $4,000 now (September), even though the option doesn't activate till January. On January 1, assume the stock price is $400. The strike is set at $400, and an option is now a vanilla option with a June expiry. At the June expiry, assume XYZ is trading at $420. In this case, the option is worth $20 ($420 - $400 strike). If they settle in cash, the buyer receives $2,000, or if they exercise, they receive 100 shares at $400 and can keep them, or sell them at $420 to make $2,000. Notice that this still results in a loss for the buyer, since they paid $4,000 but are only receiving back $2,000. To make money on the call, the price of the underlying needs to move above the strike price plus the premium. Therefore, if the price moves up to $450 by expiration, the option is worth $50 ($450 - $400 strike), and the buyer receives $5,000. That's a net profit of $1,000 over their $4,000 cost. If the underlying is trading below the $400 strike at expiry, the call option expires worthless and the buyer's premium is lost ($4,000 profit to the seller).
For example, the people buying/selling the option could specify that the strike will be at the money (ATM) at activation, or 3% or 5% in the money or out of the money (OTM). Since it is a customized contract, they can negotiate any terms they want.
forward start option
Forward start options typically attempt to keep future strike prices at the money or near the money. In this way, the holder will have the right, but not the obligation, to buy (call) or sell (put) the underlying asset in the future at or near the then-current market price. Knowing where the strike price will be in relation to the underlying's price makes it easier to come up with the premium (cost) of the option, which is also typically determined and paid at the initiation of the contract prior to the activation date. If, at the expiration date, the underlying trades below the strike price of the option (for a call), then it expires worthless. If the underlying is above the strike (for a call), then the holder exercises it and owns the underlying at the strike price. For a put option, if the underlying is below the strike price, the option has value and will be sold or exercised to realize a gain. If the underlying is above the strike price, the option will expire worthless. Typically, as with most options, the holder may sell the option if it is in the money and take the cash instead of exercising the option. Since it is an exotic option, the seller and buyer of the option may also agree to settle the option with cash instead of delivering the underlying. Once a forward start option becomes active (strike price is set), then the option is valued like a vanilla option.
The only unknown for the contract is the strike price. In terms of pricing the contract, the future price of the underlying asset is also unknown. The contract typically stipulates some parameters for where the strike price will be in relation to the underlying asset's price.
relates something to the date on which it is accurate or valid (e.g. a credit report has an asOfDate that means the date when the information was drawn)
It is different from the creation date and need not be the last date of the DatePeriod covered.
credit agreement and/or contingent facility (such as a bonding line, guarantee line or letter of credit) for which the economic characteristics can vary depending on whether the borrower achieves ambitious, material and quantifiable predetermined sustainability performance objectives aligned with Sustainability-Linked Loan Principles (SSLP)
The use of proceeds in relation to a SLL is not a determinant in its categorisation and, in most instances, SLLs will be used for general corporate purposes. Instead, SLLs look to support a borrower in improving its sustainability performance.
sustainability-linked loan
SLL
A borrower's sustainability performance is measured using sustainability performance targets (SPTs), which include key performance indicators, external ratings and/or equivalent metrics that measure improvements in the borrower's sustainability profile.
not-for-profit financial institution, typically formed by the employees of a company, labor union, or religious group, operated as a cooperative association organized for the purpose of promoting thrift among its members and creating a source of credit for provident or productive purposes
an interest rate that is allowed to vary over the maturity of a loan or other debt instrument
statistical universe consisting of people of a certain age who reside in a given region, do not live in institutions (for example, correctional facilities, long-term care hospitals, and nursing homes), and are not on active military duty
The civilian non-institutional population is typically reported in thousands.
corporate action that is a procedure that aims to obtain consent of holder to a proposal by the issuer or a third party without convening a meeting
For example, consent to change the terms of a bond.
consent solicitation
identifier for an individual transaction associated with an account
functional entity defined in terms of the nature of the commercial activity it conducts
credit agreement and/or contingent facility (such as a bonding line, guarantee line or letter of credit) designed to help a business or organization shift from carbon-intensive or environmentally harmful practices to more sustainable and environmentally friendly operations
transition loan
Transition loans are structured to assist companies in reducing greenhouse gas (GHG) emissions, improving energy efficiency, adopting renewable energy sources, or meeting other sustainability targets aligned with climate transition goals. They support initiatives such as retrofitting fossil fuel-based systems, decarbonizing supply chains, or adopting cleaner production methods. Transition loans align with emerging Climate Transition Finance principles (developed by groups such as the International Capital Market Association, ICMA). Borrowers are expected to demonstrate that the loan aligns with long-term, science-based climate goals, such as those outlined in the Paris Agreement (e.g., limiting global warming to well below 2°C).
Transition loans are part of the broader sustainable finance market and are specifically tailored for companies in industries that are not inherently green but are committed to adopting practices that align with a low-carbon or sustainable economy.
alternative trading system that automatically matches buy and sell orders for securities in the market
ECNs allow brokerages and investors in different geographic areas to trade without a third party involved, offering privacy for investors. They also allow after-hours trading, but trading may be subject to commissions and other fees.
preferred share that confers exactly one vote per share, has no fixed maturity date, provides a periodic income whose dividend rate is adjusted through an auction, and is registered
preferred, voting, perpetual, auction rate income, registered share
preferred share that confers less than one vote per share, may be exchanged for securities of another issuer, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic stated income, and is registered
preferred, restricted voting, redeemable exchangeable, fixed income, registered share
sequence of characters, capable of uniquely identifying a party based on a specific role that they play in some context
foreign banking organization that is owned or controlled by a bank holding company
foreign banking organization of a bank holding company
indicates the local or international postcode element of a delivery address as specified by the local postal service
written rules for conduct of a corporation, adopted by the board of directors
Corporate bylaws may contain any provision, not inconsistent with law or with the certificate of incorporation, relating to the business of the corporation, the conduct of its affairs, and its rights or powers or the rights or powers of its stockholders, directors, officers or employees. Changes to the bylaws of a corporation require a board-level resolution and may require a vote of the shareholders.
relates a derivative to something on which the contract is based
The domain of this property can be either a derivative instrument or, in the case of a swap contract, one leg of the swap.
party that exercises some control over an entity other than via explicit, legal means
a silent partner, i.e. where someone has made a large investment, which is bilateral (not part of the constitutional framework of the company)
divides further into financial leverage via loans; non fiscal types of leverage (influence)
A control owner (i.e., control person, per SEC regulations) may have some means or right that allows them to exercise control over board composition, other than through proxy assignment or vote. Not all control persons have this facility, as it is not inherent to having a significant (for example, 20 percent or more) ownership stake.
system of numeric codes that substitute for specified delivery point details according to the U.S. Postal Service Publication 28
exchange in which prices are determined from bid and ask quotations made by market makers, dealers, or specialists
In a quote-driven market, dealers fill orders from their own inventory or by matching them with other orders. Note that this differs from a typical market, which is order-driven rather than quote-driven.
written estimate of the market value of something as of some point in time, typically provided by a qualified appraiser
futures contract whose underlying asset is at least one reference index or economic indicator
index future
For each index there may be a different multiple for determining the price of the futures contract.
lifecycle specific to a product or product family
The product life cycle describes the period of time over which an item is developed, brought to market and eventually removed from the market. The cycle is broken into four stages: introduction, growth, maturity and decline. The idea of the product life cycle is used in marketing to decide when it is appropriate to advertise, reduce prices, explore new markets or create new packaging.
party that has fiduciary responsibility with respect to the organization, including but not limited to determining and executing corporate policy
foreign institution that engages in banking activities usually in connection with the business of banking in the countries where such foreign institutions are organized or operating
common share that confers exactly one vote per share, is restricted from a sales / transfer perspective, is fully paid and is registered
common, voting, restricted, fully-paid, registered share
relates a loan to the financial service provider that services it
asset-backed security based on credit card receivables
credit card asset-backed security
Federal Deposit Insurance Corporation (FDIC) Credit Card Securitization Manual, available at https://www.fdic.gov/regulations/examinations/credit_card_securitization/ch2.html
Credit card securitizations currently represent the primary funding vehicle for unsecured revolving consumer credit. Similar to mortgage and other asset securitizations, the financial institution that originates the credit card receivables sells a group of these receivables to a trust. The trust then creates and sells certificates backed by the credit card receivables to investors, which are predominately institutional investors. Very few credit card ABS are marketed to retail customers, primarily due to the complex nature of the transactions and the need to continually monitor various performance indices on the underlying receivables. The underlying credit card receivables generate income to support the interest payments on the certificates.
segment of a pool of securities, typically debt instruments
tranche
A tranche is one of a number of related securities in the same offering that represents a partition of a debt pool whose cash flow is derived from the combined cash flows of the instruments in that partition.
investor's stake, i.e., a holding, in a particular asset (such as an individual security)
A position can be long or short, and it can be in any asset class, such as stocks, bonds, futures, or options. A position can be open (current) or closed (past), but in general use, unless a position is specifically referred to as closed, the assumption is that it references an open position.
statistical derivative used to hedge on the magnitude of a price movement of an underlying asset
dispersion swap
A variance swap is an instrument that allows investors to trade future realized (or historical) volatility against current implied volatility.
Some strategies involve selling a variance swap on an index and buying the variance swaps on the individual constituents; this particular kind of spread trade is called a variance dispersion trade.
variance swap
relates something, such as an agreement, or debt instrument, to the rate (typically annual) of interest that is to be paid by the debtor to the creditor on the debt
place of business of a foreign bank, located in any state, at which deposits are received, and that is not an agency as defined in https://www.ecfr.gov/current/title-12/chapter-II/subchapter-A/part-211/subpart-B/section-211.21
relates an agreement to an asset pledged as security
role of a financial institution (often one of the primary lenders in the syndicate) designated to act as an intermediary between the borrowers and the syndicate lenders
administrative agent
An administrative agent is designated by the syndicate and granted the authority to disburse funds, collect payments, monitor compliance and act as the communications intermediary with the borrower on behalf of the syndicate. This coordination role is crucial to ensuring that lenders' rights and oblications are properly coordinated and to streamline operations. Their authority and the scope of what they can do is explicitly stated in the loan agreement, and does not allow unilateral decision making with respect to the terms of the loan.
corporation chartered by the Federal Reserve to engage in international banking and financial operations
identifies a date associated with an event (occurrence)
mini-future certificate that immediately expires if the barrier instrument trading price level is breached during product lifetime
barrier instrument-based mini-future certificate
relates something, such as a product, trade, or related process, to a lifecycle that characterizes it
physical address that identifies a location on a street to which communications may be delivered
Other unconventional addresses may include rural and highway route addresses, general delivery addresses, post office box addresses, private mail center addresses, and so forth.
warrant that permits the holder to acquire a specified amount of a commodity during a specified period at a specified price
Commodity Warrants Australia (CWA) sells warrants based on 12 commodities and financial markets - crude oil, gold, silver, live cattle, corn, orange juice, soy, coffee, cocoa, the Dow Jones Industrial Average, the NASDAQ Composite Index and the S&P 500 Index.
commodity warrant
person who has attained the age of majority as defined in some jurisdiction
preferred share that confers less than one vote per share, has no fixed maturity date, provides a periodic stated income, dividends not paid in any year accumulate, and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, restricted voting, perpetual, cumulative participating, registered share
party responsible for maintaining records on behalf of the issuer that identify the owners of a registered bond issue
The trustee under a bond contract often also acts as registrar.
provision that gives a bond issuer the right to call its bonds due to an unusual one-time occurrence, as specified in the offering statement
Such redemptions may occur when bond proceeds are not spent according to schedule; when bond proceeds are used in a way that makes nontaxable bond interest taxable; or when a catastrophe destroys the project being financed, among other reasons.
economic indicator representing the total number of persons who work in or for the establishment including working proprietors, active business partners and unpaid family workers, as well as persons working outside the establishment when paid by and under the control of the establishment, for example, sales representatives, outside service engineers and repair and maintenance personnel
Also included are salaried managers and salaried directors of incorporated enterprises. The total should include part-time workers and seasonal workers on the payroll, persons on short-term leave (sick leave, maternity leave, annual leave or vacation) and on strike, but not persons on indefinite leave, military leave or pension. Excluded are directors of incorporated enterprises and members of shareholders committees who are paid solely for their attendance at meetings, labour made available to the establishment by other units and charged for, such as contract workers paid through contractors, persons carrying out repair and maintenance work in the establishment on behalf of other units and all homeworkers.
security that is not transferable to another party
Certain securities that can be redeemed by the issuer may not be 'negotiable', such as savings bonds and certificates of deposit.
relates something to a voluntary but conditional promise submitted by a buyer or seller (offeror) to another (offeree) for acceptance, and which becomes legally enforceable if accepted by the offeree
code for the level of validation performed by the GLEIF or LOU with respect to the reference data provided by the registrant
indicates the method by which dividend payments are to be distributed
summary (means, mode, total, index, etc.) of the individual quantitative variable values for the statistical units in a specific group (study domain)
Statistical measures may consist of several orthogonal characteristics, including (a) whether they reflect an estimate or variable, (b) the datatype, or from a FIBO perspective, nature of the measure (e.g., index, total, ratio, percent, percent change, mean, others), (c) the population (or the universe that applies to the highest level if defined in general) to which the measure applies, and (d) any relevant aspects used to subset or stratify a measure, (i.e., make them apply to a smaller universe).
certificate that acts as a leveraged security, whose price tracks an underlying financial asset's price one for one, and that can be used to go long or short
turbo certificate
As risk management each turbo trade has a built-in knock-out level and will terminate if this is hit.
Turbos are traded on venue rather than over the counter (OTC), and have fully visible order books that you can view to gauge sentiment and plan your strategy. Turbo trading works by buying a transferrable security whose value is based on an underlying asset's. So, you effectively take a position on that asset's price either rising or falling. For each trade, you choose a knock-out level – the point where you'd like to exit if the market turns against you. This then helps to determine the purchase price for the turbo, which will be your maximum possible loss. You'll pay this outlay in full upfront.
There are two types of turbos: long turbos, sometimes known as bull turbos, and short turbos, also known as bear turbos. You'd buy a long turbo if you thought the price of the underlying asset was set to rise. With a long turbo, the knock-out level will be below the underlying asset's current market price to protect you against downward movements. Alternatively, you'd buy a short turbo if you thought the price of the underlying asset might fall. A short turbo will have a knock-out level which is above the underlying asset's current market price to protect you against upward movements.
turbo
turbo warrant
legal terms that define triggering events and associated conditions related to settlement
credit protection terms
Note that there may be additional payment schedules or a more complex calculation formula required depending on the terms of the contract.
contingent leg
preferred share that confers zero votes per share, may be redeemed at the option of the issuer and/or of the shareholder with an extendable redemption date, provides a periodic stated income and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, non-voting, extendable, participating, registered share
guaranty that takes the form of a letter of credit, i.e., a document issued by a bank guaranteeing the payment up to a stated amount for a specified period
reverse mortgage structured like a home equity line of credit in that it provides the borrower with additional funds after closing (either as fixed monthly payments, under a line of credit, or both)
Normally, open-end reverse mortgages are first liens. These include combinations of both a lump sum payment to the borrower at closing and payments after the closing of the loan.
expression used to determine a value for an instrument at a given point in time
pricing model
indicates the payment status for shares issued
has share payment status
depositary receipt that represents securities of a foreign company and allows that company's securities to trade in the U.S. financial markets
For example, Accton Technology is traded on the Taiwanese exchange. In order for Accton Technology to be traded in the United States, Citibank, acting as a domestic custodian bank, purchases shares of Accton Technology and creates a security, ISIN US00437R1032, which can be traded on a U.S. exchange, in this case PORTAL. Note that the depositary shares do not have to equal the number of original shares. In the case of Accton Technology, one depositary share is equivalent to two original shares.
American depositary receipt
ADR
Most ADRs are issued by a domestic custodian bank when the underlying securities are deposited in a foreign depositary bank, usually by a broker who has purchased the securities in the open market local to the foreign company. An ADR can represent a fraction of a share, a single share, or multiple shares of a foreign security. The holder of an ADR has the right to obtain the underlying foreign security that the ADR represents, but investors usually find it more convenient to own the ADR. The price of an ADR generally tracks the price of the foreign security in its home market, adjusted for the ratio of ADRs to foreign company shares. In the case of companies domiciled in the United Kingdom, creation of ADRs attracts a 1.5 percent creation fee; this creation fee is different than stamp duty reserve tax charge by the UK government. Depositary banks have various responsibilities to ADR holders and to the issuing foreign company the ADR represents.
estimated rate at which a debt or part of a debt is paid off ahead of schedule
prepayment speed
A prepayment model is used to estimate the level of prepayments (speed) on a loan portfolio that will occur in a set period of time, given possible changes in interest rates. Understanding prepayment speed is critical in assessing the value of mortgage pass-through securities. Prepayment models are based on mathematical equations and usually involve the analysis of historical prepayment trends to predict what will happen in the future. Prepayment models are often used to value mortgage pools such as GNMA securities or other securitized debt products, including mortgage-backed securities (MBS).
indicates the level of validation performed by the registrar with respect to the legal entity
average of the absolute deviations from a central point
The central point can be the mean, median, mode, or the result of another measure of central tendency. Absolute deviation is the distance between each value in the data set and that data set's mean or median.
amortization in which the very last payment (which, if the schedule was calculated correctly, should be equal to all others) pays off all remaining principal and interest on the loan
a classifier used for price indices related to raw materials purchased by industries in Canada for further processing
indicates that the notional amount is customized per a notional step schedule
has custom notional amount
contract terms established by a derivatives exchange that apply to any futures contract traded on that exchange
standardized futures terms
Standard symbology for the commodities are standardized by the exchanges as part of their standard contracts, for example trading in standard bushels, commonly defined kinds of oil and so on. These give the units in which lot sizes are described and defined.
municipal securities dealer responsible for reselling to investors securities (such as variable rate demand obligations and other tender option bonds) that have been tendered for purchase by their owner
The remarketing agent also typically is responsible for resetting the interest rate for a variable rate issue and may act as tender agent.
preferred share that confers exactly one vote per share, may be exchanged for securities of another issuer, provides a periodic stated income, dividends not paid in any year accumulate, and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, voting, exchangeable, cumulative participating, registered share
credit event representing a failure to meet a contractual obligation, such as failure to repay a debt including interest or principal on a loan or security
default event
A default can occur when a borrower is unable to make timely payments, misses payments, or avoids or stops making payments, typically with respect to a single transaction. A default has adverse effects on the borrower's credit and ability to borrow in the future, and allows the creditor to demand immediate repayment of the obligation in full.
bond secured by revenues derived from designated taxes other than ad valorem taxes
For example, bonds for a particular purpose might be supported by sales, cigarette, fuel or business license taxes.
scheme that specifies the elements of a unique business identifier code (BIC) scheme to identify financial and non-financial institutions used to facilitate automated processing of information for financial services
identifiable, non-monetary asset that lacks physical substance
Intangible assets may include intellectual property, patents, copyrights, trademarks, rights-of-way (easements), brands, organizational abilities (know-how), and data.
Intangible assets include assets that may involve a legal claim to some future benefit, typically a claim to future cash. Intangible assets have become an increasingly larger component of the valuation for all companies, from newer social media companies to even the most established and iconic manufacturers.
derivative instrument whose underlier is based on a security, including collections of securities and indices based on securities
security-based derivative
non-directional options strategy that limits both gains and losses while seeking to profit from either low or high volatility
condor spread
There are two types of condor spreads. A long condor seeks to profit from low volatility and little to no movement in the underlying asset. A short condor seeks to profit from high volatility and a sizable move in the underlying asset in either direction. A Condor Spread uses either all calls or all puts.
party responsible for managing one or more rating schemes and potentially publishing ratings based on those schemes
Rating scale publishers are frequently also rating agencies.
geographic directional symbol that occurs after the primary street number but before the street name in a street address
rate of exchange between two currencies as specified in a forward contract
has forward exchange rate
combination of adjacent metropolitan and micropolitan areas with economic ties measured by commuting patterns
These areas that combine retain their own designations as metropolitan or micropolitan statistical areas within the larger combined statistical area.
the date on which the last interest payment is due
preferred share that confers zero votes per share, may be exchanged for securities of another issuer, provides a periodic stated income and dividends not paid in any year accumulate, and is registered
preferred, non-voting, exchangeable, cumulative, registered share
indicates the balance with respect to the principal on the loan as of some date
floating leg in which periodic payments are based on an overnight interest rate index multiplied by the same notional amount on which the payments for the other leg of the swap are based
subset of the employed population that includes persons that are working fewer than 30 to 35 hours per week based on usual working hours
The definition of part-time varies considerably from country to country according to the OECD. Classification may be based on (1) employee perception, (2) usual working hours, which is the most reliable measure, or (3) actual working hours, which varies due to holidays, illness, etc.
In the U.S., part-time workers are those who usually work fewer than 35 hours per week. See https://www.bls.gov/cps/definitions.htm for additional details.
calculated date that is some duration before or after another date
A settlement date, defined as T+3: three days after the trade date. The 'hasRelativeDuration' property is set to '3D'.
When the 'hasRelativeDuration' property is negative, the RelativeDate is before the 'isRelativeTo' Date; otherwise the RelativeDate is after the 'isRelativeTo' Date.
address component that identifies a location with respect to a given street
Although traditionally called a 'number', the street number may consist of alphanumeric characters, for example, '221B'.
loan in which the borrower pledges some asset via a security agreement as collateral for the loan, or that is secured via third-party guarantee
economic indicator representing measure of the rate of change over time in the prices of goods and services bought and sold by producers
Statistical agencies implement the Laspeyres index by putting it into price-relative (price change from the base period) and revenue-share (from the base period) format. In this form, the Laspeyres index can be written as the sum of base-period revenue shares of the items in the index times their corresponding price relatives. Statistical agency practice has introduced some approximations to the theoretical Laspeyres target due to a number of practical problems with producing the Laspeyres index exactly. For these and other pragmatic reasons, some agencies use alternatives depending on circumstances. See the IMF publication cited for a full explanation of the most commonly used approaches and trade-offs made for determining PPI.
The standard methodology for a typical PPI is based on a Laspeyres price index with fixed quantities from an earlier base period. The construction of this index can be thought of in terms of selecting a basket of goods and services representative of base-period revenues, valuing this at base-period prices, and then repricing the same basket at current-period prices. The target PPI in this case is defined to be the ratio of these two revenues. Practicing statisticians use this methodology because it has at least three practical advantages. It is easily explained to the public, it can use often expensive and untimely weighting information from the date of the last (or an even earlier) survey or administrative source (rather than requiring sources of data for the current month), and it need not be revised if users accept the Laspeyres premise.
delivery address that is fully spelled out, abbreviated by using the Postal Service standard abbreviations or as given in the current Postal Service ZIP+4 file
classification specific to European financial institutions that designates them as credit institutions / investment firms as defined by the European Banking Authority (EBA)
links a party in the role of broker, dealer, vendor, or merchandiser to a purchaser or potential purchasing party
investment fund that offers shares/units to the public and invests in real estate directly
real estate investment trust
REIT
Real estate investment trusts own, and in most cases operate, income-producing real estate. REITs own many types of commercial real estate, ranging from office and apartment buildings to warehouses, hospitals, shopping centers, hotels and commercial forests. Some REITs engage in financing real estate.
share whose payment status indicates that no additional money is owed to the company by shareholders on the value of the shares
fully paid share
any party in the business of buying and selling securities, operating as both a broker and a dealer, depending on the transaction
loan extended to a corporation, commercial enterprise, joint venture, or other organization as opposed to a consumer
commercial loan
Such loans may include those that provide working capital, are used to finance the purchase of equipment and/or materials, for facilities and/or improvement of facilities, and so forth, and are typically secured.
commercial and industrial loan
municipal security available to governing councils in case of emergency, such as a natural disaster, that needs immediate action without time for voter referendum
For example, when a hurricane destroys the police and emergency services building, there is no time to go through the process of voter referendum. The local council must be able to borrow the money to set up provisional buildings and necessary equipment for police and emergency services so that the community is served in continuity.
CO's are similar to GO bonds, except that they do not require voter approval before they are issued. The CO's are also guaranteed by the City's taxation power and are counted in the calculation of the tax rate that is needed to support debt payments.
structure or means of organizing information such as a blueprint, schema, numbering system, organization structure, measurement system, plan, taxonomy, or language for organizing information
preferred share that confers multiple votes per share, has no fixed maturity date, provides a periodic stated income, and is registered
preferred, enhanced voting, perpetual, fixed income, registered share
indicates the settlement period for a trade for which the stated spot rate applies
indicates the percentage of the premium paid by the holder for the option
has first rebate amount
Both knock-out and knock-in barrier options can contain a provision to provide rebates to holders, if the option does not reach the barrier price and becomes worthless.
entry in an entity legal form registry that conforms to ISO 20275
code that specifies either (1) magnetic-stripe data, or (2) printed security features that are used to protect data integrity and limit alteration, counterfeiting and fraud generally
indicates an actor that may have some measure of influence over the partnership
specifies the initial date in a range of dates by which the underlying asset (or some portion thereof) must be delivered in order for the terms of the contract to be fulfilled
has first delivery date
dispersion leg whose underlier is a defined set of constituents of a given equity index
dispersion swap index constituents leg
card account whose terms and conditions are defined in a credit card agreement that is represented by a credit card
swap leg whose paying party is obligated to make payments from time to time over the term of a swap calculated by reference to some variable rate, calculated based on the change in value of some underlying asset, or consisting of at least one payment of some floating amount
indicates the date on which the principal amount of an instrument is due to be repaid to the investor and interest or coupon payments stop, and/or the date on which the instrument may be redeemed
Maturity dates typically apply to debt instruments, such as notes, drafts, bonds, and other loans, but may also apply to preferred shares and other financial instruments.
indicates the organization that the general partner manages
rate at which one currency may be exchanged for another for immediate delivery
Spot rates represent the prices buyers pay in one currency to purchase a second currency. Although the spot exchange rate is for delivery on the earliest value date, the standard settlement date for most spot transactions is two business days after the transaction date.
party that purchases something in exchange for money or other consideration under a contract of sale
A buyer is the party that acquires, or agrees to acquire, ownership (in case of goods), or benefit or usage (in case of rights or services), something in the context of a sale, and may or may not be an end user of the product, good, service, or right.
most common measure of central tendency; the average of a set of numbers
When unqualified, the mean usually refers to the expectation of a variate, or to the arithmetic mean of a sample used as an estimate of the expectation.
party that signs a borrower's promissory note, providing additional security and potentially improving the quality of the debt
The co-maker's liability is similar to that of an endorser or guarantor, but with additional risk/exposure, as they can be compelled to honor the debt much sooner and regardless of whether certain conditions are met.
Differences between a co-maker and co-borrower include: (1) a co-maker is not listed on the title of the asset to which the loan applies, (2) a co-maker does not have any legal ownership rights to the asset, and (3) the co-maker does not make regular payments on the loan unless the primary borrower(s) fails to do so.
preferred share dividend whose rate is periodically reset through an auction, typically every 7, 14, 28, or 35 days
indicates the context of control in which the party plays the role of controlling something
barrier option with a built-in mechanism to expire as worthless if a specified price level in the underlying asset is reached
Assume an investor purchases a Knock-Out call option with a down Direction, also called a 'Down and Out Option', on a stock that is trading at $60 with a strike price of $55 and a barrier of $50. Assume the stock trades below $50, at any time, before the call option expires. Therefore, the down-and-out call option promptly ceases to exist.
knock-out option
A knock-out option sets a cap on the level an option can reach in the holder's favor. As knock-out options limit the profit potential for the option buyer, they can be purchased for a smaller premium than an equivalent option without a knock-out stipulation.
preferred share that confers multiple votes per share, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic stated income, and is registered
preferred, enhanced voting, redeemable extendable, fixed income, registered share
partner whose liabilities are limited to the extent of their investment or guarantees and that has no involvement in the day to day operations of the partnership
party that has the authority to control some legal entity
This type of party is either asserted to be the case by the entity itself or some other party, or is determined through some analysis or calculation based on the available information about controlling interests.
It is assumed that since control follows from some form of ownership or contractual instrument, that the range of entities which may fulfil this party role is the same as that for entity ownership, namely a logical union of natural persons, legal persons and formal organizations.
relates a legal entity to a party that has 100 percent ownership and control over it
contextual designation for a program within the context in which that program is administered
programme name
program name
a short-term debt security that gives the owner the unconditional right to receive a stated, fixed sum of money on a specified date
money market instrument
These instruments usually are traded at a discount in organized markets; the discount is dependent upon the interest rate and the time remaining to maturity. Included are such instruments as treasury bills, commercial and financial paper, bankers' acceptances, negotiable certificates of deposit (with original maturities of one year or less), and short-term notes issued under note issuance facilities.
any organization, association, or group of persons, whether incorporated or unincorporated, which constitutes, maintains, or provides a facility for bringing together purchasers and sellers of financial instruments, commodities, or other products, services, or goods, and includes the market place and facilities maintained by such exchange
ISO 10383, Securities and related financial instruments - Codes for exchanges and market identification (MIC), Third edition, 2012-10-01, confirmed 2018-03-29
An exchange is typically a corporation or mutual organization that provides securities trading services, where securities may be bought and sold by third parties. As a facility, an exchange is also a place of trade associated with a particular site, i.e., stock exchange, regulated market such as an Electronic Trading Platform (ECN), or unregulated market, such as an Automated Trading System (ATS), or market data provider. Stock exchanges also provide facilities for the issue and redemption of securities as well as other financial instruments and capital events including the payment of income and dividends. The securities traded on a stock exchange include: shares issued by companies, unit trusts, derivatives, pooled investment products and bonds. To be able to trade a security on a certain stock exchange, it has to be listed there. Usually there is a central location at least for recordkeeping, but trade is less and less linked to such a physical place, as modern markets are electronic networks, which gives them advantages of speed and cost of transactions. Trade on an exchange is by members only.
theoretical value that is anticipated based on a model or hypothesis
Expected values are often calculated using probability distributions. Note that they can be qualitative, however, such as certain ratings.
indicates the controlled limited liability company that the managing member runs
option trading strategy that involves a sequential set of options with periodic reset dates, such that each period between resets behaves like an individual option
strip strategy
Typically, a strip is a strategy that involves being long in one call position and two put options, all with the same strike price on a single underlying stock. The investor who adopts this strategy believes that the underlying price of the stock will plummet in the near-term future. All three of the options will have the same expiration date and the same strike price. If the investor is correct and the price drastically decreases, the puts will pay out substantially. If the investor is wrong and the price of the underlying asset increases, the call option will mitigate the loss. The period between resets may be called a Caplet or Floorlet.
formal organization that is an independent agency, instrumentality or other permanent or semi-permanent organization in the machinery of government in the United States, authorized by the executive branch or by Congress, that operates at the national (federal) level
legal entity that represents fundamental unit of sovereign tribal (indigenous) government
Any indigenous group or community which is recognized as having rights and obligations independent of the central government.
swap in which the periodic payments for one leg are based on an overnight interest rate index multiplied by the same notional amount upon which payments for the other leg of the swap are based
overnight index swap
OIS swap
The interest of the overnight rate portion of the swap is compounded and paid at reset dates. The present value for the leg is determined by either compounding of the overnight rate or by taking the geometric average of the rate over a given period.
publisher of data relevant to financial markets
Market data providers include exchanges and independent data vendors, among others. Market valuation and related control and risk processes typically require explicit documentation of the source for a given market rate, such as an interest rate benchmark, exchange rate, stock prices, and so forth.
The grade of oil e.g. Brent Crude.
has grade
service involving the extension of credit to support business activities
Examples include operating lines of credit and term loans for property, plant and equipment (PP&E).
number or text which appears on an identity document issued by a country or jurisdiction
A national identification number, national identity number, or national insurance number is used by the governments of many countries as a means of tracking their citizens, permanent residents, and temporary residents for the purposes of work, taxation, government benefits, health care, and other governmentally-related functions. The number will appear on an identity document issued by a country. The ways in which such a system is implemented are dependent on the country, but in most cases, a citizen is issued an identification number at birth or when they reach a legal age (typically the age of 18). Non-citizens may be issued such numbers when they enter the country, or when granted a temporary or permanent residence permit. Many countries issued such numbers ostensibly for a singular purpose, but over time, they become a de facto national identification number. For example, the United States originally developed its Social Security number system as a means of disbursing Social Security benefits. However, due to function creep, the number has become utilized for other purposes to the point where it is almost essential to have one to, among other things, open a bank account, obtain a credit card, or drive a car.
price an asset would sell for in the market
loan to one or more individuals for household, family, or other personal expenditures, excluding mortgages and student loans
Other secured consumer loans may include loans against insurance policies, against securities held in a retirement account, loans secured with collateral other than for the loan's stated purpose, lines of credit other than credit card agreements, and so forth.
consumer loan
In the United Kingdom and per the Bank of England, lending to individuals (excluding student loans) consists of sterling lending secured on dwellings (i.e. mortgages) and sterling consumer credit to UK-resident individuals. See https://www.bankofengland.co.uk/statistics/details/further-details-about-total-lending-to-individuals-data. This definition is broader than the definition used in the US, however.
In the United States, consumer loans do not include a home mortgage, small business, or small farm loans. They are defined by law to include the following: (1) Motor vehicle loan, which is a consumer loan extended for the purchase of and secured by a motor vehicle; (2) Credit card loan, which is a line of credit for household, family, or other personal expenditures that is accessed by a borrower's use of a 'credit card,' as this term is defined in § 1026.2 of 12 CFR § 228.12; (3) Other secured consumer loan, which is a secured consumer loan that is not included in one of the other categories of consumer loans; and (4) Other unsecured consumer loan, which is an unsecured consumer loan that is not included in one of the other categories of consumer loans.
explicit period from the start to the end of a specific interval or range within which a computational process or operation occurs
price that stems from another source or calculation rather than being quoted or based on actual trading data
For example, a product's price can be derived from another pricing source, such as an asset or product, using various contributing factors. Derived prices can also be calculated within a firm using published price spreads or other market data. An interpolated price is determined by interpolation between available price figures, using some algorithm or curve, such as between bid and offer (among others). It also includes yield curves and implied forward curves. That is, interpolation may either be linear (straight line interpolation between two values) or may be expressed as a non linear curve such as a yield curve or an implied forward curve.
derived price
There are evaluated prices in which an independent source evaluates a price they have derived, and there are prices which are derived within a firm, from supplied, published end of day price spreads or other market data.
interpolated price
matrix price
unique identifier for a merchant that is used, for example, for transaction interchange purposes
a call provision allowing the issuer to pay off remaining debt early
The issuer typically has to make a lump sum payment to the investor derived from a formula based on the net present value (NPV) of future interest or coupon payments that will not be paid incrementally because of the call combined with the principal payment the investor would have received at maturity.
preferred share that confers zero votes per share, may be redeemed at the option of the issuer and/or of the shareholder with an extendable redemption date, provides a periodic income whose dividend rate is set periodically, and is registered
preferred, non-voting, extendable, adjustable income, registered share
party for whose interest (benefit) an annuity, assignment (such as a letter of credit), contract, insurance policy, judgment, promise, trust, will, etc., is made
event that prescribes a change in a contractual term, such as a rate or notional amount, for a given contract
financial institution appointed to help design, implement, and monitor the sustainability aspects of a syndicated green loan
sustainability structuring agent
This role is typically present in sustainability-linked loans (SLLs) or green loans, which tie the loan's terms to the borrower's environmental, social, and governance (ESG) performance. The sustainability structuring agent's role is crucial in ensuring that the loan's sustainability metrics align with both the borrower's goals and the expectations of the participating lenders.
subscription right entitling existing common convertible shareholders to subscribe to new securities at a price normally lower than the prevailing market price
common convertible share subscription right
guaranty provided by a government entity, such as for a government-backed security
rule recognized by some community as regulating the behavior of its members and that it may enforce through the imposition of penalties
Law is a term which does not have a universally accepted definition. Certain laws are made by governments, specifically by their legislatures although the sense intended here is broader. The formation of laws themselves may be influenced by a constitution (written or unwritten) and the rights encoded therein. The law shapes politics, economics and society in countless ways and serves as a social mediator of relations between people.
corporate officer appointed by the directors of an organization, responsible for ensuring compliance with legal obligations related to corporate governance
His or her formal duties include (1) calling meetings, (2) recording minutes of the meetings, (3) keeping statutory record books, (4) proper payment of dividend and interest payments, and (5) proper drafting and execution of agreements, contracts, and resolutions.
sequence of characters that can be used to uniquely identify funds
Codes for the representation of currencies and funds, ISO 4217, Eighth edition, 2015-08-01, section 3.2
scheme that defines the financial service provider identifier per the issuing registration authority or regulatory agency
financial service provider identifier scheme
depository institution, usually a corporation, that accepts deposits, makes loans, pays checks, and performs related services, for individual members of the public, businesses or other organizations
catalog entry for a securities offering managed by an exchange that provides the terms under which that security is made available on that exchange
listing
market listing
the law-making body of a political unit, usually a national government, that has power to enact, amend, and repeal public policy
Laws enacted by legislatures are known as legislation. Legislatures observe and steer governing actions and usually have exclusive authority to amend the budget or budgets involved in the process.
preferred share that confers multiple votes per share, may be redeemed at the option of the issuer and/or of the shareholder with an extendable redemption date, provides a periodic stated income and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, enhanced voting, extendable, participating, registered share
relates something to the date that it was created
rating score that is represented as a qualitative code with respect to some rating scale
Ratings for the creditworthiness of securities are often qualitative, rather than quantitative, such as a triple-A (i.e., AAA). Many ratings for products and businesses on the Internet are also qualitative, such as 5-star ratings for something.
method by which adjustments will be made to the contract should one or more of a number of extraordinary events occur
forward contract adjustment method
entity that is formed and administered as per commercial law in order to engage in business activities
There are many types of business entities defined in the legal systems of various countries. These include corporations, cooperatives, partnerships, sole proprietorships, sole traders, limited liability companies, certain trusts and trust companies, and so forth. The rules vary by country and by state or province. Some of the more widely recognized types in the US, UK, and EU are defined in FIBO, by region. However, the regulations governing particular types of entity, even those described as roughly equivalent, differ from jurisdiction to jurisdiction.
interest rate swap in which fixed interest payments on the notional are exchanged for floating interest payments and where both payment streams are expressed in terms of the same currency
fixed float single currency interest rate swap
fixed-float single-currency interest rate swap
official statement identifying the source of funds for a new issue of municipal securities
depositary receipt issued under SEC Regulation S
offshore depositary receipt
This regulation means that the securities are not, and will not be registered with any U.S. securities regulation authority. Regulation S shares cannot be held or traded by any 'U.S. person' as defined by SEC Regulation S rules. The shares are registered and issued to offshore, non-U.S. residents.
indicates the date on which the corporation has registered in some jurisdiction for regulatory and / or for tax purposes
indicates something that is a component of an agreement
interbank rate that represents the mid-point between bid and offer rates
identifies a specific date that a relative date or relative date period references
party that is bound legally or by agreement to repay a debt, make a payment, do something, or refrain from doing something
corporation whose shares are traded and held publicly
identifier associated with a drivers' or operating license for operating a motor vehicle or non-driver identification card
deposit account from which the depositor / account holder is permitted to make transfers or withdrawals by negotiable / transferable instruments, payment orders of withdrawal, telephone transfers, and so forth, and that may be accessible via an electronic device such as an automated teller machine (ATM), remote service unit (RSU), mobile device, and by debit card
Excluded from transaction accounts are savings deposits (both money market deposit accounts (MMDAs) and other savings deposits), even though such deposits permit some third-party transfers. However, an account that otherwise meets the definition of a savings deposit but that authorizes or permits the depositor to exceed the transfer limitations specified for that account shall be reported as a transaction account.
financial service offered by an entity primarily engaged in providing infrastructure for hosting or data processing services
event that involves analyzing one or more aspects of a real property
The concept of a property inspection is separate from conducting an overarching appraisal. Examples are termite inspections, construction inspections, evaluation for completion of some milestone, improvement, correction, etc.
the capability to carry out certain actions or to have certain rights together with the resources to do so
financial service provider that maintains a substantial position in swaps for any of the major swap categories
This excludes positions held for hedging or mitigating commercial risk and positions maintained by an employee benefit plan for the primary purpose of hedging or mitigating any risk directly associated with the operation of the plan.
measure of the average daily wage an employee makes over the reporting period
statistical information publisher comprised of the government agencies and departments that publish statistical information on behalf of the U.S. Federal Government
Examples of American statistical information publishers include the Department of Commerce, Bureau of Economic Analysis (Commerce), Census Bureau (Commerce), Bureau of Labor Statistics (Labor), Department of the Treasury, and the Federal Reserve Board, among others.
a branch of a credit institution authorised in another European Economic Area (EEA) country that has the right to passport its activities
preferred share that confers multiple votes per share, may be exchanged for securities of another issuer, provides a periodic stated income and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, enhanced voting, exchangeable, participating, registered share
preferred, enhanced voting, redeemable exchangeable, adjustable income, registered share
relates a derivative to contractual terms specific to the settlement process
has settlement terms
preferred share whose maturity date is set, typically according to the terms of the prospectus
preferred share with fixed maturity date
actor that exercises some form of control in the context of some situation
At this level of abstraction it is not defined whether the control is some degree of controlling interest, or some level of actual control (asserted or calculated) in some entity.
a classifier that qualifies something about the relationship between consolidated entities during the reporting period, such as the accounting framework used
offering of securities made privately to a limited number of qualified potential investors
Unlike a public offering, a private placement does not have to be registered with a regulatory agency if the securities are purchased for investment rather than resale.
variable interest rate charged by a financial institution for borrowing that is not prescribed as a margin over base rate but is set from time to time by the institution
indicates a relative price with respect to the face value at which an instrument is issued, namely par, premium or discount
entry in a legal entity identifier registry that conforms to ISO 17442 and the Global Legal Entity Identifier Foundation (GLEIF) Common Data Format (CDF)
office of a foreign bank which is located in any state and is not a federal branch, federal agency, state branch, state agency, or commercial lending company subsidiary
business recurrence interval convention that is a published rule for defining the date of some auction event
over-the-counter option that confers the right but not the obligation, to enter into a swap transaction at some time in the future
swaption
A swaption, also known as a swap option, refers to an option to enter into an interest rate swap or some other type of swap. In exchange for an options premium, the buyer gains the right but not the obligation to enter into a specified swap agreement with the issuer on a specified future date.
swap option
preferred share that confers multiple votes per share, has no fixed maturity date, provides a periodic stated income, dividends not paid in any year accumulate, and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, enhanced voting, perpetual, cumulative participating, registered share
expression that specifies a calculation of a cash flow as a component of a cashflow formula
party that collectively has the authority to control the affairs of some business organization
legal contractual terms of a swap transaction
relates something, such as a product or trade lifecycle or related process, to a phase or stage in that lifecycle
exotic option for which the underlying asset is another option
For example, assume an investor wants to buy a put to sell 100 shares of stock at $50. The stock is currently trading at $55. The investor could buy a Call-Put, which allows them to buy a call now, for say $1 per share ($100), which will allow them to buy a put with a $50 strike in the future. They pay the $1 per share now, but only need to pay the fee for the second option if they exercise the first resulting in them receiving the second option.
compound option
Therefore, there are two strike prices and two exercise dates. They are available for any combination of calls and puts. For example, a put where the underlying is a call option or a call where the underlying is a put option. The underlying is the second option, while the initial option is called the overlying. If the compound option is exercised, there are two premiums.
split-fee options
share whose ownership/transfer/sale is subject to special conditions including country-specific restrictions
restricted share
indicates the first day the public will receive information regarding a new security issue
An announcement date may also refer to the release of a corporate event or new financial news, such as interest rate changes or earnings reports.
control that arises through some investment in some entity, other than via the holding of constitutional equity (shares etc.) in that entity
specifies a geographic directional symbol that follows the street name and street suffix in a street address
financial institution that provides some financial service while spreading the financial risk inherent in that service to lower the probability of a catastrophic financial event by aggregating customers across diverse dimensions as a risk management practice
Insurance companies are the most common form of risk pooling institution.
basis for a percentage quoted rate as used in specifying bond call percentage amounts
share that is listed on at least one platform
listed share
Listing requirements vary by exchange and include minimum stockholder's equity, a minimum share price and a minimum number of shareholders. Exchanges have listing requirements to ensure that only high quality securities are traded on them and to uphold the exchange's reputation among investors.
assessment activity to estimate the value of an underlying asset of a derivative
underlying asset valuation
real property, interests in mortgages on real property (including interests in mortgages on leaseholds of land or improvements thereon), and shares in qualified real estate investment trusts
real estate
The term 'mortgages on real property' includes deeds of trust on real property. Note that interpretation of the term 'real estate' is context-dependent - this broader interpretation is used in tax law in the US and elsewhere.
real estate asset
recurrence interval defined via an explicit duration
controlling party in an affiliation situation
indicates the estimated value of the combined underlying collateral for a given tranche at the time the instrument was issued
indicates the first date on which the bond may be called at par for redemption
specifies the final date on which a delivery notice can be issued
has last notice date
conversion terms specifying the details regarding conversion of shares into other securities
classifier used to organize an entity's financial accounts in accordance with applicable legal, regulatory, and reporting requirements
indicates the date on which the transaction actually occurred
method used for calculating the average rate or price of an Asian option
averaging strategy
any party that acts as an intermediary between a buyer and a seller, usually charging a commission
A broker that specializes in stocks, bonds, commodities, or certain derivatives must be registered with the exchange in which the securities are traded.
preferred share that confers multiple votes per share, may be redeemed at the option of the issuer and/or of the shareholder with an extendable redemption date, provides a periodic income whose dividend rate is set periodically, and is registered
preferred, enhanced voting, extendable, adjustable income, registered share
price for a given security at some point between the opening and official closing price on an exchange
intra day price
investment fund used for making investments in various equity (and to a lesser extent debt) securities according to an investment strategy associated with private equity
private equity fund
PE fund
Private equity funds are typically structured as limited partnerships or limited liability companies, wherein investors are limited partners, and the fund is managed by one or more general partners. It is composed of investors and funds that invest directly in private companies, or that engage in buyouts of public companies, resulting in the delisting of the public equity.
mail route outside the city or township limits in a rural area associated with an address
part of a larger organization that might not be co-located with it
relates an offering to an underwriter involved in raising capital for or distributing the instruments that are the subject of the offering
party that requires a drawee to pay either a third party or themselves with respect to a bill of exchange
participation product that provides the possibility to participate in the gains or losses in the price of an asset, subject to counterparty risk
participation certificate
In many cases, certificates do not give the investor the right to receive dividend distributions from the underlying stocks or other assets. For example: You buy a bonus certificate issued by your bank which is based on a stock that pays annual dividends. During the certificate's term, the bank holds the underlying stock and receives the dividends. At the end of the term, the bank pays the predefined bonus, even though the actual price of the stock is lower (but not below the protection threshold).Depending on the type of certificate, the exact terms and conditions, and the contract's expiry date, it is possible that the investor may receive the underlying asset instead of money at the end of the investment term. That is often the case with discount certificates based on stocks, for example, when their price sits below the predetermined cap. If the certificate's issuer becomes insolvent, the assets which underly the certificate are considered part of the issuer's liquid assets. This is in contrast to owning actual securities or shares in investment funds, as these are segregated assets which remain the property of the investor if the broker or custodian bank fails.
certificate
bearer debt note
strategy for selling something, including allocating resources to the sales process, reducing costs, and optimizing revenues
credit default swap whose underlying risk is a single reference obligation, or a single reference entity, such as a corporation or a sovereign borrower
single name credit default swap
Draft paper on Credit Default Swaps from the Federal Reserve Board, available at https://www.federalreserve.gov/econres/feds/files/2022023pap.pdf
ISO 10962:2019, Securities and related financial instruments - Classification of financial instruments (CFI) code
convention that determines when the holder or future holder of an option can implement the rights defined in the option
exercise convention
currency option whose underlying asset is based on the volatility of a foreign exchange rate
currency volatility option
preferred share that confers zero votes per share, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic stated income and dividends not paid in any year accumulate, and is registered
preferred, non-voting, redeemable, cumulative, registered share
financial asset that is a block of securities or other financial assets with a distinct cost basis for tax reporting purposes
Tax lots reflect how shares or other assets are tracked for capital gains and may be adjusted by events including: - reinvested dividends (creates very small, new tax lots); - stock splits or mergers (adjusts basis, may create fractional lots); - Wash sale rules (can change which lots are recognized). When an investor sells, they select which tax lot to sell (specific ID, FIFO, etc.), which determines realized gain or loss.
swap leg that specifies a fixed amount, 'the strike', quoted at the time of execution
strike leg
The fixed amount may be with respect to some variable or a monetary amount. The realization of a strike leg is not a cashflow per se, but a netting out against the terms defined in the other leg of a statistical swap.
credit agreement and/or contingent facility (such as a bonding line, guarantee line or letter of credit) made available exclusively to finance, re-finance or guarantee, in whole or in part, new and/or existing eligible green projects that are aligned to the four core components of the Green Loan Principles (GLP)
Example categories of eligibility contained in the LMA's Green Loan Principles (GLP) include loans designed to facilitate renewable energy, energy efficiency, climate change adaptation and green buildings that meet regional, national or internationally recognised standards or certifications.
green loan
subset of the employed population that includes persons that are working fewer than 30 to 35 hours per week due to slack work, unfavorable business conditions, inability to find full-time work, and seasonal declines in demand
employed population part-time for economic reasons
population employed part-time for economic reasons
the cost of using credit, or another's money, expressed as a rate per period of time, payable by a debtor to a creditor in consideration of the credit extended to the debtor
service-agreement that is account-specific, applicable in cases where a client might hold multiple accounts with differing terms and conditions
Customers of financial service providers frequently hold multiple accounts - brokerage accounts, checking and savings accounts, trust accounts, and so forth - which may have specific terms and conditions associated with them.
bond that is traded over the counter rather than via an exchange or other listing facility
indicates the context of ownership in which the party plays the role of owner
option whose exercise terms involve a payoff determined by the average underlying price (either the strike price or the settlement price) of the underlying asset over a predetermined period
For an Asian call option using arithmetic averaging and a 30-day period for sampling the data: On Nov. 1, a trader purchased a 90-day arithmetic call option on stock XYZ with an exercise price of $22, where the averaging is based on the value of the stock after each 30-day period. The stock price after 30, 60, and 90 days was $21.00, $22.00, and $24.00. The arithmetic average (mean) is (21.00 + 22.00 + 24.00) / 3 = 22.33. The profit is the average minus the strike price 22.33 - 22 = 0.33 or $33.00 per 100 share contract. As with standard options, if the average price is below the strike price, the loss is limited to the premium paid for the call options.
The averaging can be either a geometric or arithmetic average.
Asian option
These options allow the buyer to purchase (or sell) the underlying asset at the average price instead of the spot price. There are various ways to interpret the word 'average,' and that needs to be specified in the options contract. Typically, the average price is a geometric or arithmetic average of the price of the underlying asset at discreet intervals, which are also specified in the options contract. Because of the averaging feature, Asian options reduce the volatility inherent in the option; therefore, Asian options are typically cheaper than European or American options. They are used by traders who are exposed to the underlying asset over some time, such as consumers and suppliers of commodities, etc.
preferred share that confers exactly one vote per share, may be exchanged for securities of another issuer, provides a periodic stated income and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, voting, exchangeable, participating, registered share
the start of a specific calculation period
scheduled calculation period start event
FpML for CalculationPeriod 'A type defining the parameters used in the calculation of a fixed or floating rate calculation period amount. This type forms part of cashflows representation of a swap stream.'
estimated per-month percentage of mortgages in an MBS pool that will be paid off early
single monthly mortality
SMM
Single monthly mortality (SMM) is a way to gauge the prepayment risk of a mortgage-backed security.
debt instrument price that does not include accrued interest
clean price
links an actual payment of principal, interest, and other related amounts to the overall payment history for an account
financial institution organized under the laws of a foreign country, a territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands, which engages in the business of banking, or any subsidiary or affiliate, organized under such laws, of any such institution
Foreign bank means an organization that is organized under the laws of a foreign country and that engages directly in the business of banking outside the United States. The term foreign bank does not include a central bank of a foreign country that does not engage or seek to engage in a commercial banking business in the United States through an office.
For the purposes of the International Banking Act of 1978, the term 'foreign bank' includes, without limitation, foreign commercial banks, foreign merchant banks and other foreign institutions that engage in banking activities usual in connection with the business of banking in the countries where such foreign institutions are organized or operating.
ratio, expressed as a percentage, between the principal amount of the loan and the appraised value of the asset securing the financing
a variable interest rate that is calculated by adding a margin to a specified index rate
Fully indexed interest rates are used for variable rate credit products. The interest rate on a variable (adjustable) rate mortgage corresponds to a specific benchmark (often the prime rate, but sometimes LIBOR, the one-year constant-maturity Treasury, or other benchmarks) plus a spread (also called the margin. The margin on a fully indexed interest rate product is determined by the underwriter and based on the borrower's credit quality.
preferred share that confers exactly one vote per share, may be redeemed at the option of the issuer and/or of the shareholder with an extendable redemption date, provides a periodic stated income, and is registered
preferred, voting, extendable, fixed income, registered share
sequence of characters identifying a trade within some context
Note that a given trade may consist of multiple transactions, and thus there may be multiple identifiers for such transactions associated with a specific trade.
specifies an identifier for a building, house, office complex, shopping center, or other structure or group of structures
event in which the shareholders elect to participate and must respond in order for the issuer to process the action
An example of a voluntary corporate action is a tender offer, in which the issuer may request shareholders to tender their shares at a predetermined price.
voluntary corporate action
Shareholders send responses to the issuer's agents, and the issuer will send the proceeds of the action to those shareholders who elect to participate.
identifier that is officially allocated to a financial service provider based on a function that they provide, typically in a jurisdiction over which a regulatory agency has some jurisdiction
contract terms that specify requirements for repayment of the principal
specifies a security that will replace a convertible security under the terms of the agreement
classifier indicating whether the lender has the primary lien position with respect to an asset used as collateral for the loan
cash instrument associated with a time deposit account that cannot be withdrawn for a certain period of time (term)
certificate of deposit
When the term is over it can be withdrawn or it can be held for another term. The longer the term the better the yield on the money.
preferred share that confers exactly one vote per share, may be exchanged for securities of another issuer, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic stated income, and is registered
preferred, voting, redeemable/exchangeable/extendable, fixed income, registered share
obligation in respect of default(s) in the performance of any payment obligation
Prior to the occurrence or effective designation of an early termination date in respect of the relevant transaction, a party that defaults in the performance of any payment obligation will, to the extent permitted by law (and in the case of an ISDA Master Agreement is subject to Section 6(c)), be required to pay interest (before as well as after judgment) on the overdue amount to the other party on demand in the same currency as such overdue amount, for the period from (and including) the original due date for payment to (but excluding) the date of actual payment, at the default rate. Such interest will be calculated on the basis of daily compounding and the actual number of days elapsed.
interest obligation in light of default
The rate adjusts according to a predetermined formula outlined in the bond's prospectus or official statement.
bond whose entire principal value is paid on the maturity date, rather than amortized over its lifetime
specifies a value for something in terms of an amount of money and the currency in which it is denoted
price at which a lot of the underlying asset may be bought or sold when the contract is exercised
strike price
For call options, the strike price is the price at which the security may be purchased by the option holder; for put options, the strike price is the price at which the security may be sold.
cashflow expression specifying the arguments required to calculate the fixed price at which the lookback option is to be exercised
fixed lookback strike expression
subset of the marginally attached population that have given a job-market related reason for not currently looking for work
indicates the instrument, party or something else to which a rating applies
anti-takeover device that gives a prospective acquiree's shareholders the right to buy shares of the firm or shares of anyone who acquires the firm at a deep discount to their fair market value
purchase right
The underlying is usually shares but this not necessarily the case. Also known as "Poison Pill".
preferred share that confers less than one vote per share, has no fixed maturity date, provides a periodic stated income and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, restricted voting, perpetual, participating, registered share
indicates a virtual address composed of a sequence of digits and symbols that may be assigned to a fixed-line telephone subscriber station, a wireless electronic telephony device, such as a radio telephone or a mobile telephone, or other similar device or service
presents something (a proposal, application, report, or other document) for consideration or review
relates something to the currency it is based on
indicates the party that asks for something
relates a system of governance to its chosen representatives
classifier that specifies the general nature of an occurrence (event)
As types (or categories) of events, OccurenceKinds do not happen; OccurenceKinds describe Occurrences which happen and exemplify an OccurenceKind. As occurrences are things that actually happen, they have an actual date where as OccurenceKinds do not have an actual date.
In order for other ontologies to accept FinancialDates without committing to the particular notions of 'Occurrence' and 'OccurrenceKind' that is modeled here, all aspects of Occurrences are captured in this ontolog
financial service provider that is headquartered outside the United States and that can acquire or establish freestanding banks or bank holding companies in the United States
Foreign banking organization means: (1) A foreign bank, as defined in section 1(b)(7) of the International Banking Act of 1978 (12 U.S.C. 3101(7)), that: (i) Operates a branch, agency, or commercial lending company subsidiary in the United States; (ii) Controls a bank in the United States; or (iii) Controls an Edge corporation acquired after March 5, 1987; and (2) Any company of which the foreign bank is a subsidiary.
These entities are regulated and supervised as domestic institutions.
indicates the date by which payment of some amount must be made to the creditor
relates something to the date it arrived or was delivered, e.g., a loan application request
physical, produced item over which ownership rights can be established, whose ownership can be passed from one party to another by engaging in transactions, and that is not money or real estate
An inherently useful and relatively scarce tangible item produced from agricultural, construction, manufacturing, or mining activities. Off-the-shelf products, including off-the-shelf software products and customization of software products, are generally considered to be goods. Energy, such as electricity, is also considered to be a good from a legal perspective, and meets the criteria of being manufactured or produced via some process, including but not limited to a mining process. According to the UN Convention On Contract For The International Sale Of Goods, the term 'good' does not include (1) items bought for personal use, (2) items bought at an auction or foreclosure sale, (3) aircraft or ocean-going vessels.
From the Universal Commercial Code (UCC) in the United States, the term 'good' includes (i) fixtures, (ii) standing timber that is to be cut and removed under a conveyance or contract for sale, (iii) the unborn young of animals, (iv) crops grown, growing, or to be grown, even if the crops are produced on trees, vines, or bushes, and (v) manufactured homes. The term also includes a computer program embedded in goods and any supporting information provided in connection with a transaction relating to the program if (i) the program is associated with the goods in such a manner that it customarily is considered part of the goods, or (ii) by becoming the owner of the goods, a person acquires a right to use the program in connection with the goods. The term does not include a computer program embedded in goods that consist solely of the medium in which the program is embedded. The term also does not include accounts, chattel paper, commercial tort claims, deposit accounts, documents, general intangibles, instruments, investment property, letter-of-credit rights, letters of credit, money, or oil, gas, or other minerals before extraction.
research and development phase of a product lifecycle or the introduction phase in a marketing lifecycle, growth stage in an economic lifecycle for a product
actual occurrence of an event that happens during a specific stage of a specific product lifecycle
exotic option that has a pre-determined payout if the option is in-the-money and the payoff condition is satisfied
For example, let's say the ABC Index is trading at a level of 2,795 on June 2. An investor believes the ABC Index will trade above 2,800 before the end of the trading day, June 4th. The trader purchases 10 ABC Index options at a strike price of 2,800 options for $40 per contract. If the ABC Index closes above 2,800 at the end of the trading day on June 4, the investor is paid $100 per contract, which is a profit of $60 per contract or $600 (($100 - $40) x 10 contracts). However, if the ABC Index closes below 2,800 on June 4. The investor loses all of the premium amount or $400 ($40 x 10 contracts).
digital option
There is an upfront fee called the premium for digital options, which is the maximum loss for the option. Unlike traditional options, digital options don't convert or exercise to the underlying asset's shares. Instead, they pay out a fixed reward if the asset's price is above or below the option's strike price.
binary option
indicates the context of control in which something is being controlled
event reflecting the actual payment of some amount of the principal of a debt
financial institution designated to oversee the drafting, negotiation, and finalization of the loan documentation
documentation agent
indicates a strike price or level expressed as a percentage of the value of the underlying asset
has strike percentage amount
indicates an asset in which the beneficial owner holds rights (typically voting rights, management rights, etc.) in a beneficial ownership situation
analytical activity that investigates a specified area of interest, to determine its characteristics, relationships, constraints, or implications
Studies involve exploration, analysis, sometimes modeling, and sometimes evaluation, but are not necessarily focused on evaluation and may or may not be criteria-based, which distinguishes it from the concept of an assessment. In a business context, a study might map capabilities, analyze value streams, or model information flows. Only some studies produce an assessment (e.g., capability maturity assessment). A clinical research study may observe, test, or model phenomena, and may or may not result in a clinical or risk assessment. A study conducted as part of a project or larger programme may explore feasibility, options, impacts, or requirements.
indicates the ISO 3166-1 country in which an exchange, data reporting services provider, or crypto asset services provider operates
measure of the viscosity of oil during operation
oil grade
indicates the nominal amount of the loan that must be paid at or before maturity
has principal amount
party responsible for issuing one or more formal notices indicating that an event that is relevant to a given contract has taken place
notifying party
The notifying party is the party that notifies the other party when a credit or other triggering event has occurred by means of a credit event notice. If more than one party is referenced as being the notifying party then either party may notify the other of such an occurrence.
price at which the contract may be exercised
has cap price
party that utilizes economic goods or services, typically for personal, family, or household purposes
The general notion of a consumer includes an end user, and is not limited to a purchaser, in the distribution chain of a good or service
role of a party that issues (or proposes to issue in a formal filing) one or more financial instruments
With respect to certificates of deposit for securities, voting-trust certificates, or collateral- trust certificates, or with respect to certificates of interest or shares in an unincorporated investment trust not having a board of directors or of the fixed, restricted management, or unit type, the term issuer means the person or persons performing the acts and assuming the duties of depositor or manager pursuant to the provisions of the trust or other agreement or instrument under which such securities are issued; and except that with respect to equipment-trust certificates or like securities, the term issuer means the person by whom the equipment or property is, or is to be, used.
An issuer can be any legal person, including a legally competent natural person, company, government, or political subdivision, agency, or instrumentality of a government, depending on the nature of the instrument. A person might provide a loan directly to another party, but most instruments are issued by legal entities.
an abstract place; one of many commonly understood concepts such as domestic, Eurozone etc.
classifier of events representing a violation of an express, or implied, condition of a contract to do or not to do something, without a legitimate excuse
breach of contract
Examples of events that are considered a breach of contract include discovery of misrepresentation, not completing a job, not paying in full or on time, failing to deliver all the goods, substituting inferior or significantly different goods, not providing a bond when required, being late without excuse, or any act that demonstrates that a party will not complete required work ('anticipatory breach.') Breach of contract is one of the most common causes of law suits for damages and/or court-ordered 'specific performance' of the contract. A breach of contract frequently invalidates the contract.
relates an account to a client or customer that is considered a secondary, co-owner of the account
participation certificate that enables the investor to acquire the underlying asset at a lower price in return for a limited payout, and for which the maximum redemption amount (Cap) is paid out if the barrier is never breached
Due to the barrier, the probability of maximum redemption is higher; the discount, however, is smaller than for a discount certificate. If the barrier is breached the product changes into a discount certificate. Barrier discount certificates have reduced risk compared to direct investment in the underlying assets, with limited profit potential (Cap). With higher risk levels multiple underlying assets (worst-of) allow for higher discounts or a lower barrier.
barrier discount certificate
commitment to distribute a portion of earnings to shareholders, similar to a dividend but often with a fixed payment amount and schedule
specifies the amount of the call on the first call date on which the bond may be called at a price above par as specified in the call schedule
exotic option that allows its holder (buyer) to exercise the right to buy (call) or sell (put) specified assets at a fixed price whereby the buyer does not have to decide whether the contract will be a put or a call until an agreed future date, prior to expiration
For example, assume a trader wants to have an option position for the updated XYZ Inc. earnings release. They think the stock will have a big move, but they are not sure in which direction. The earnings release is in one month, so the trader decides to buy a chooser option that will expire about three weeks after the earnings release. They believe this should provide enough time for the stock to make a significant move if it is going to make one, and fully digest the earnings release. Therefore, the option they choose will expire in seven to eight weeks. The chooser option allows them to exercise the option as a call if the price of XYZ rises, or as a put if the price falls. At the time of the chooser option purchase, XYZ is trading at $28. The trader chooses an at-the-money strike price of $28 and pays a premium of $2 or $200 for one contract ($2 x 100 shares). The buyer can't exercise the option prior to expiry since it is a European option. At expiry, the trader will determine if they will exercise the option as a call or put. Assume the price of XYZ at the time of expiry is $31. This is higher than the strike price of $28, therefore the trader will exercise the option as a call. Their profit is $1 ($31 - $28 - $2) or $100. If XYZ is trading between $28 and $29.99 the trader will still choose to exercise the option as a call, but they will still be losing money since the profit is not enough to offset their $2 cost. $30 is the breakeven point on the call. If the price of BAC is below $28, the trader will exercise the option as a put. In this case, $26 is the breakeven point ($28 - $2). If the underlying is trading between $28 and $26.01 the trader will lose money since the price didn't fall enough to offset the cost of the option. If the price of BAC falls below $26, say to $24, the trader will make money on the put. Their profit is $2 ($28 - $24 - $2) or $200.
chooser option
Commodity Futures Trading Commission (CFTC) glossary, https://www.cftc.gov/LearnAndProtect/EducationCenter/CFTCGlossary/glossary_c.html
A chooser option is an option contract that allows the holder to decide whether it is a call or put prior to the expiration date. Chooser options usually have the same strike price and expiration date regardless of what decision the holder makes. Because the option could benefit from upside or downside movement, chooser options provide investors a great deal of flexibility and thus may cost more than comparable vanilla options. Chooser options are typically European style, and have one strike price and one expiration date regardless of whether the option is exercised as a call or put.
subset of the civilian, noninstitutional population, that is considered neither employed nor unemployed by the reporting agency during the reporting period
party that owns an option
option holder
In a call, the option holder has the right, but not the obligation, to buy the underlying asset, while, in a put, the option holder has the right to sell the underlying asset. An option holder may sell the option contract itself, at which point the buyer becomes the option holder. Once the instrument is exercised there are typically additional, relevant obligations with regard to settlement.
functional entity either licensed to provide financial services to consumers and/or businesses or established by law to provide financial services, such as a central bank
indicates the specific terms related to interest payments on the principal as specified in the instrument or a related contract document
common share that confers less than one vote per share, is restricted from a sales / transfer perspective, is fully paid and is registered
common, restricted voting, restricted, fully-paid, registered share
formal organization that is an agency, instrumentality, or other body of a supranational, national, federal, state, or local government, including certain multijurisdictional agencies and departments that carry out the business of government
Identifying government bodies is a pre-requisite for identifying government officials. This information is needed to help ensure compliance with applicable laws relating to bribery or corruption, including the U.S. Foreign Corrupt Practices Act (FCPA), the UK Bribery Act 2010 (UKBA), the U.S. Bank Bribery Act (Bribery Act), and other anti-bribery and corruption laws in the jurisdictions where financial institutions conduct business.
letter from a bank or other creditworthy institution guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount
In some states in the U.S., the issuer is not limited to financial institutions -- it is simply a written instrument, addressed by one person to another, requesting the latter to give credit to the person in whose favor it is drawn.
In the event that the buyer is unable to make payment, the bank or other issuer is required to cover the full or remaining amount.
economic indicator representing the rate of participation the labor force of a given economy for some specified period
The labor force participation rate is the percentage of the population that is either employed or unemployed (that is, either working or actively seeking work).
savings bank that has a federal affiliation
party that holds legal title to an asset (e.g., stocks, bonds, or property) on behalf of the beneficial owner
controlling nominee
The nominee is typically the registered owner of an asset, named in official records.
indicates something that is strongly suggested by something else, such as a logical consequence based on some set of observations, facts, or events
preferred share that confers exactly one vote per share, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic stated income and dividends not paid in any year accumulate, and is registered
preferred, voting, redeemable extendable, cumulative, registered share
Aligned Community Investment Fund, available at https://www.nc3now.org/uploads/1/4/0/1/140134350/acif_overview.pdf.
community investment fund that raises capital publicly from community members and deploys some of that capital via investments into its client businesses or other businesses in the community
aligned community investment fund
ACIF
For example, an entrepreneurial support organization (ESO) that derives most of its income from providing consulting services to early stage businesses, can raise capital publicly from its community and deploy some of that capital via investments into its client businesses. These investments would comprise its ACIF.
classifier for an event (milestone), or set of events related to the status or level of completion of a designated activity, task, or segment of work required for contract fulfillment
contract milestone
Milestones are checkpoints that are predefined in the contract, used to measure progress. They specify tasks, deliverables, or objectives that must be achieved to meet each milestone and may trigger partial payment.
certificate that allows disproportionate participation (outperformance) in positive performance above the strike, reflecting underlying price moves 1:1 (adjusted by the conversion ratio and any related fees), and whose risk is comparable to direct investment in the underlying asset(s)
For example: You buy an outperformance certificate based on a stock. The certificate’s strike price is 100 Euros and its participation factor is 150 percent. If the price of the underlying stock surpasses the strike price of 100 Euros, you are rewarded with a 150 percent return, instead of just 100 percent. If the price of the stock climbs to 110 Euros, for example, the value of the certificate would be 115 Euros.
outperformance certificate
subset of the civilian non-institutional population that includes persons employed part-time for economic reasons, persons that are marginally attached to the labor force, and persons that are identified as unemployed
financial service provider identified as either a government agency or privately owned entity that collects funds from the public and from other institutions, and invests those funds in financial assets, such as loans, securities, bank deposits, and income-generating property
Financial institutions are differentiated by the way they obtain and invest funds. Depository institutions accept public deposits, which are insured by the government against loss, and channel those deposits into lending activities. Non-depository institutions, such as brokerage firms, life insurance companies, pension funds, and investment companies, fund their investment activities directly from financial markets by selling securities to the public or by selling insurance policies, in the case of insurance companies.
value of the variate dividing the total frequency of a data sample, population, or probability distribution, into two halves
The basic advantage of the median in describing data compared to the mean is that it is not skewed by extremely large or small values, and may provide a better idea of a 'typical' value.
This measure represents the middle value (if n is odd) or the average of the two middle values (if n is even) in an ordered list of data values. The median divides the total frequency distribution into two equal parts: one-half of the cases fall below the median and one-half of the cases exceed the median.
contractual right that may be exercised at some point in the future, such as an option to extend a contract, or other available but not obligatory rights as defined in the contract
partnership that has at least one general partner and at least one limited partner
In the United States, film production companies, real estate investment firms, and private equity firms are typically formed as limited partnerships. In the United Kingdom, limited partnerships are governed by the Limited Partnerships Act 1907 and, on matters on which that Act is silent, also by the Partnership Act 1890.
Limited partnerships are distinct from limited liability partnerships, in which all partners have limited liability. Similar to a general partnership, the general partners have management control, share the right to use partnership property, share the profits of the firm in predefined proportions, and have joint and several liability for the debts of the partnership.
investment pool that is controlled by a professional investment manager who invests the pool in various financial instruments and assets that align with their investment objectives and is overseen by a board of directors
A managed investment is an investment vehicle that consists of a pool of funds collected from many different investors run by a management company.
investment fund
links contractual terms embedded in a contract, such as interest or repayment terms to the element those terms apply to
preferred share that confers less than one vote per share, may be redeemed at the option of the issuer and/or of the shareholder with an extendable redemption date, provides a periodic stated income, dividends not paid in any year accumulate, and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, restricted voting, extendable, cumulative participating, registered share
has amount payable for principal, interest, fees or other expenses
This can entail adding up other prices and/or fees (e.g. 4 units * a unit price)
preferred share that confers zero votes per share, whose issuer and/or shareholders have the option to extend the maturity date, that provides the same dividends as common/ordinary shareholders, and is registered
preferred, non-voting, redeemable extendable, normal income, registered share
debt that is set out by the borrower in some form of financial security in which the lender is the holder or counterparty of that security
company that directly or indirectly controls a savings association or related holding company, and explicitly excludes any company that is also a bank holding company
option giving the buyer (holder) the right, but not the obligation, to buy or sell currency at a specified exchange rate during a specified period of time
currency option
FX option
For this right, a premium is paid to the broker, which will vary depending on the number of contracts purchased. Currency options are one of the best ways for corporations or individuals to hedge against adverse movements in exchange rates. Investors can hedge against foreign currency risk by purchasing a currency option put or call. For example, assume that an investor believes that the USD/EUR rate is going to increase from 0.80 to 0.90 (meaning that it will become more expensive for a European investor to buy U.S dollars). In this case, the investor would want to buy a call option on USD/EUR so that he or she could stand to gain from an increase in the exchange rate (or the USD rise).
foreign exchange option
forex option
student loan that is not considered a government-backed / regulated loan
private student loan
polity that typically represents a city, township, or other administrative subdivision having corporate status and powers of self-government or jurisdiction
Municipal entity in the sense of a legal entity, that is, what it is that incurs debt for a municipality, as distinct from the Municipal government. A municipal entity has a Government which sets laws applicable within the geographical area corresponding to its jurisdiction.
Financial records include accounts, agreements, trading books, etc.
regulated market that is operated by and/or managed by a market operator that brings together or facilitates the bringing together of multiple third-party buying and selling interests in financial instruments
In the financial community in the EU, such an exchange operates in accordance with its non-discretionary rules in a way that results in a contract, in respect of the financial instruments admitted to trading under its rules and/or systems, and which is authorised and functions regularly and in accordance with the provisions of Title III of MiFID II.
links a depositary receipt to the instrument (equity or exchange-traded fund) that it represents
has traded share
time interval that occurs within a system that fixes the beginning and length of a segment of the year with respect to that system
The terms 'calendar xxx' are intended to reinforce that these are periods on a calendar, not durations. For example, a calendar year always starts on a January 1 and ends on a December 31. The term 'calendar year' does not mean the same thing as a duration (an amount of time) of 1 year, nor can a calendar year start on any arbitrary day of a year. For example, a calendar year never starts on September 1. Similar points apply to other kinds of calendar periods, such as calendar week, calendar month, and calendar quarter.
A calendar-specified date may be figured with respect to a calendar week, a calendar month, a calendar quarter, or a calendar year.
not-for-profit depository institution that makes personal loans and offers other consumer banking services, organized for the purpose of promoting thrift among its members and creating a source of credit for provident or productive purposes
debt security issued by some government on behalf of some polity, including sovereign and municipal debt
use of proceeds provision specifying that funds obtained through financing, such as through a credit agreement, offering, warrant, or other instrument are intended to be used to fund specific projects, investments, or operational changes that support a company's transition toward sustainability
contract between partners in a partnership that establishes the terms and conditions of the relationship between the partners
delivery address provided by a commercial mail receiving company that includes a supplementary address line containing the abbreviation 'PMB' or the pound "#" symbol followed by the mailbox number; alternatively, 'PMB' or '#" and the mailbox number can be appended to the street address
indicates something controlled that a controlling party has some amount of authority or influence over
contract provision specifying how funds obtained through financing, such as through a credit agreement, offering, warrant, or other instrument are intended to be used
Examples include for working capital and corporate expenses, for the purchase or upgrades to facilities and/or equipment, and so forth.
Many government agencies issue regulations to administer laws.
terms for a set of cashflows defined according to a mathematical formula
entity of which 25 percent or more of whose voting shares are owned or controlled by an entity that is based in the United States, or of which a majority of its directors are controlled by such domestic entity, or of which 25 percent or more of whose voting shares are held by trustees for the benefit of the shareholders or members of such domestic entity
The Bank Holding Company Act of 1956 defines a 'Subsidiary', with respect to a specified bank holding company, means (1) any company 25 per centum or more of whose voting shares (excluding shares owned by the United States or by any company wholly owned by the United States) is owned or controlled by such bank holding company; or (2) any company the election of a majority of whose directors is controlled in any manner by such bank holding company; or (3) any company 25 per centum or more of whose voting shares are held by trustees for the benefit of the shareholders or members of such bank holding company.
From the perspective of the International Banking Act of 1978, the definition of subsidiary is the definition from the Bank Holding Act of 1956. Thus, the meaining of the term 'subsidiary' with respect to the NIC repository and, specifically, with respect to the definition of an 'international non-bank subsidiary of a domestic entity', is the definition from the Bank Holding Company Act of 1956.
system for allocating identifiers to death certificates
Schemes for death certificate identification are typically regionally defined, and there may be jurisdiction-specific scope required as an additional restriction on a specific scheme.
assets received from investors in exchange for an ownership interest
collection of agents (people, organizations, software agents, etc.) that are considered as a unit
kind of event that occurs during one or more stages of the lifecycle of an agreement
value of a rate established in the marketplace for a set of instruments or that describes the economic climate for an industry and/or political region (e.g., SOFR, Prime)
Financial market rates include, but are not limited to reference rates, foreign exchange rates, lending rates, bankers' acceptance rates, and so forth.
known collectively (in the CFI Standard) as referential instruments
Market rates include but may not be limited to the following: (1) Index: Statistical composite that measures changes in the economy or in financial markets, often expressed in percentage changes from a base year or from the previous month (2) Money Rate: Benchmark or guideline for interest rates determined by central banks or economical climate as a whole (3) Bankers' Acceptance Rate: Benchmark reflecting market fluctuations of Bankers' Acceptance issued instruments (4) Commercial Paper Rate: Benchmark reflecting market fluctuations of Commercial Paper issued instruments (5) Certificate of Deposit Rate: Benchmark reflecting market fluctuations of Certificate of Deposit issued instruments (6) Interbank Rate (7) Prime (8) Time Deposit Rate: Benchmark reflecting market fluctuations of Deposit/Redeposit issued instruments
preferred share that confers exactly one vote per share, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic income whose dividend rate is adjusted through an auction, and is registered
preferred, voting, redeemable, auction rate income, registered share
registry for registering and maintaining information about business entities for a particular jurisdiction
net profits kept to accumulate in a business after dividends are paid
If the corporation takes a loss, then that loss is retained and called variously retained losses, accumulated losses or accumulated deficit. Retained earnings and losses are cumulative from year to year with losses offsetting earnings.
data reporting services provider that is authorized to provide the service of collecting trade reports for financial instruments from regulated markets, MTFs, OTFs and APAs and consolidating them into a continuous electronic live data stream providing price and volume data per financial instrument
Consolidated tape is an electronic system that collates real-time exchange-listed data, such as price and volume, and disseminates it to investors. Through the consolidated tape, various major exchanges, including the New York Stock Exchange, the NASDAQ, and the Chicago Board Options Exchange, report trades and quotes.
preferred share that confers exactly one vote per share, may be redeemed at the option of the issuer and/or of the shareholder, provides the same dividends as common/ordinary shareholders, and is registered
preferred, voting, redeemable, normal income, registered share
a prescriptive event involving the return of an investor's principal in a fixed-income security, such as a preferred stock or bond, or the sale of units in a mutual fund
terms specifying the value of the underlying asset based on analysis during a specific period, typically ending in the maturity of the option, whereby the payoff is determined by comparing the strike price with the value of the selected price
lookback strike terms
In the case of a fixed strike, the terms depend on whether the option is a call or put. If it is a call, the calculated payout reflects the difference between a running maximum value of the observable during the lookback period, and the pre-agreed strike.
The payoff may either be the difference between a fixed, pre-agreed Strike Price and the observable, or the difference between the best or worst valuable of the observable and the value of that same observable at maturity of the contract (these are the Fixed and Floating lookback terms respectively). This (per review at Nordea) is not mutually exclusive with the terms for Fixed Strike and Resettable Strike, that is, either of those kinds of strike terms may apply, and Lookback strike terms may also apply.
an entry in the FDIC institution directory, a repository of financial institution characteristics collected by the FDIC related to the institutions they insure
private limited company that combines the pass through taxation of a sole proprietorship or partnership with the limited liability of a corporation
party qualified and authorized to review and verify the accuracy of financial records and ensure that companies comply with tax laws
An auditor is authorized to audit one or more specific organizations, i.e., by the authorizing party indicated by the situation.
An auditor may be an internal auditor - an individual whose primary job function is to audit his or her own company, or an external auditor - an individual from outside the company, who typically is employed by an auditing firm who handles many different clients.
structured product that participates in the performance of a financial asset, such as a stock, fund or index, while protecting the investor's capital
Capital protected structured instruments offer investors exposure to chosen underlying assets using various approaches and offering a large variety of asymmetric pay-off profiles. There are one or more reference entities underlying the product. Redemption is made at least in the amount of the conditional capital protection at maturity, provided that no credit event by the reference entity has occurred. Conditional capital protection only applies to the nominal amount and not to the purchase price. The general functioning of a capital guaranteed structured instrument is as follows: the notional amount is split into a zero bond, that will deliver the capital guarantee at maturity, and the difference between the zero bond's value (= present value of the guarantee level at maturity) and the notional amount is used for structuring the performance component with options which deliver the agreed pay-off profile of the structured instrument.
capital-protected product
CPI
Depending on the product, they may participate to varying degrees in the underlying asset's upside and protect the capital either entirely or partially.
capital protected investment
any party that has been legally empowered to act on behalf of another party
preferred share that confers less than one vote per share, may be exchanged for securities of another issuer, provides a periodic income whose dividend rate is set periodically, and is registered
preferred, restricted voting, exchangeable, adjustable income, registered share
return swap in which payments are based on a fee paid to the seller of the swap and on a floating reference price based on changes in the level of an index from an initial level to a level observed on some valuation date(s)
index return swap
Payments to the parties may be made either on a periodic basis or on termination of the transaction. One party will receive a payment based upon the change in the level of the index between two valuation dates (multiplied by the notional amount of the swap), as modified by the fee paid to the seller of the swap. If the level of the index increases, the buyer of the swap will be entitled to a payment based on this performance, as such payment may be reduced (or negated) by the fee paid to the seller of the swap. If the level of the index decreases, the seller of the swap will be entitled to a payment based on this performance, as such payment may be increased by the fee paid to the seller of the swap.
preferred share that confers zero votes per share, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic stated income and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, non-voting, redeemable extendable, participating, registered share
call allowing the issuer to pay off remaining debt early
The issuer typically has to make a lump sum payment to the investor(s) derived from a formula based on the net present value (NPV) of future coupon payments that will not be paid incrementally because of the call combined with the principal payment the investor would have received at maturity.
agreement where two parties commit to perform specific actions or obligations towards each other
bilateral agreement
mutual agreement
preferred, restricted voting, redeemable exchangeable, auction rate income, registered share
preferred share that confers exactly one vote per share, may be redeemed at the option of the issuer and/or of the shareholder with an extendable redemption date, provides a periodic stated income and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, voting, extendable, participating, registered share
indicates the party for which a signatory has the ability to sign agreements, access accounts and perform related tasks
relates something to its estimated value
preferred share that confers exactly one vote per share, may be exchanged for securities of another issuer, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic income whose dividend rate is set periodically, and is registered
preferred, voting, redeemable/exchangeable/extendable, adjustable income, registered share
indicates the legal address for the entity, in the jurisdiction in which the entity is established, used for registration purposes with respect to obtaining an LEI
physical area uniquely identified by some postal code
post code area
indicates the amount of the call on the specified call date, typically the sum of par value and the call premium, as specified in the contract
This is the price a bond issuer or preferred stock issuer must pay investors to buy back, or call, all or part of an issue before the maturity date.
prepares and issues material for public consumption
individual record for one element or sub-element in a ledger that records and summarizes increases, decreases, and balances associated with that specific element
Ledger accounts are internal to a legal entity's accounting system(s).
swap in which one leg, the return leg, is based on income generated from some underlier
return swap
identifies an individual or organization on which a given legal capacity has been conferred
This includes capacities specific to duties at law (such as those for corporate officers) as well as the ability or capacity to incur liability.
rights to the transmission of power across an electricity distribution network
energy transmission rights
observed value of the underlying asset as of some date during the lookback period that is considered the best value from the perspective of the option holder during the lookback period (depending on whether the option is a call or put)
observed best value
common share that confers exactly one vote per share, is restricted from a sales / transfer perspective, is nil paid and is registered
common, voting, restricted, nil paid, registered share
netting provision that, when triggered, is facilitated by a central clearinghouse or financial institution
multilateral netting provision
Rather than settling individual obligations between each party, as in bilateral netting, all transactions are aggregated, and a single net amount is determined for each participant.
indicates an officer of the organization
registration authority responsible for issuing and managing National Securities Identifying Numbers for securities in accordance with the ISO 6166 standard in some jurisdiction (typically that of a country)
event signifying a sudden change in credit standing, such as bankruptcy or a violation of a bond indenture or loan agreement, that raises doubts about the party's ability to meet current or future obligations
credit event
numeric value of some aggregate relative to the value of that aggregate as of some date
A mathematical device or number which is used to express the observation (e.g., price level, volume of trade, relative amount etc.) of a given period, in comparison with that of a prior period.
specialized organization responsible for a sector of government public administration
relates something to the party that owns, influences, manages and directs it
basket that has a mix of constituents, including securities and indices
mini-future certificate that typically entitles the holder to acquire specific underlying assets during a specified period at a specified price
long mini-future certificate
temporary, self-organizing group of people, companies, corporations or entities organized as an alliance whose purpose is to transact some specific business, or to pursue or promote a shared interest
For example, when a group of investment banks work together to bring a new issue of securities to the market, they form a distributing syndicate. Other types of syndicates are created for underwriting, banking, and insurance.
syndicate
A syndicate is a temporary alliance formed by people or businesses to handle a large transaction that would be hard to execute individually. Syndication makes it easy for businesses to pool their resources and share risks.
preferred share that confers zero votes per share, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic income whose dividend rate is set periodically, and is registered
preferred, non-voting, redeemable extendable, adjustable income, registered share
futures contract to buy or sell a predetermined amount of a commodity at a specific price on a specific date in the future
commodity future
A commodity future is an agreement to purchase or sell a commodity for delivery in the future: (1) at a price that is determined at initiation of the contract; (2) that obligates each party to the contract to fulfill the contract at the specified price; (3) that is used to assume or shift price risk; and (4) that may be satisfied by delivery or offset.
identifier that uniquely identifies a business registry, and is associated with a registration authority and jurisdiction, issued by the Global Legal Entity Identifier Foundation (GLEIF)
auction date for US 13 week and 26 week Treasury bills
Per FpML notes/definition, this is every Monday except on New York holidays when it will be on a Tuesday.
indicates the source of funds for a new issue of municipal securities
financial service provider that is incorporated and domiciled in the United States
identifies a dwelling where an individual resides the majority of the year
For tax purposes, in cases when an individual owns more than one home, their primary residence is the home in which they reside most of the time, and for which they can provide evidence to that effect. Having said this, there are cases, such as for individuals that have dual citizenship, where they may have multiple primary residences, one in each country in which they maintain a home. There may also be subtle issues related to 'rent control' that may impact the statements an individual makes about their primary residence. In other words, one cannot necessarily infer a person's identity from their primary place of residence.
agency of a foreign bank established and operating under section 3102 of CFR Title 12, Chapter 32 and section 4 of the International Banking Act of 1978
federal agency of foreign banking organization
age at which someone acquires the capacity to work legally in some jurisdiction
structured collection of quoted or projected exchange rates, such that volatility may be constructed for the structure
lowest price acceptable to a prospective seller for a given security at a particular point in time
best offer
relates the guaranty to the monetary amount guaranteed
market identifier that identifies a section of an exchange/market/trade reporting facility that specialises in one or more specific instruments or that is regulated differently
indicates the currency sold with respect to a currency or related instrument
has selling currency
Note that the buying and selling currencies could be the same under certain circumstances.
identifies the date on which an individual died
credit event involving a change in state or condition in which a party becomes insolvent
bankruptcy
put option giving the buyer (holder) the right, but not the obligation, to sell the assets specified at with a strike price equal or close to the current price of the underlying asset, on or before a specified date
protective put
A protective put is a risk management and options strategy that involves holding a long position in the underlying asset (e.g., stock). A protective put strategy is analogous to the nature of insurance. The main goal of a protective put is to limit potential losses that may result from an unexpected price drop of the underlying asset
synthetic call
preferred share that confers zero votes per share, may be exchanged for securities of another issuer, provides a periodic stated income, and is registered
preferred, non-voting, exchangeable, fixed income, registered share
rate of exchange between two currencies as specified as of some date and time as quoted by a specific source
has quoted exchange rate
security identifier issued in the public domain and referred to in listings and other relevant publications
realization of an event that happens during a specific stage of a specific trade lifecycle
weighted average of the times of the principal repayments Average life is calculated using the weighted average time to the receipt of all future cash flows.
weighted average life
WAL
Average life is calculated using the weighted average time to the receipt of all future cash flows of an amortizing loan or amortizing bond. it's the average time until a dollar of principal is repaid.
The time weightings used in weighted average life calculations are based on payments to the principal. In many loans, such as mortgages, each payment consists of payments to principal and payments to interest. In WAL, only the principal payments are considered and these payments tend to get larger over time, with early payments of a mortgage going mostly to interest, while payments made towards the end of the loan are applied mostly to the principal balance of the loan.
Where it refers to pre-payment above, if the bond does not include prepayment then this is not included. However, analytics that refer to this e.g. Yield to Average Life, then this figure is relevant. It is not relevant for other types of bond where e.g. you would use yield to next call, yield to worst etc. Average Life used in place of Maturity for Yield Calculation. This is not only used for Yield calculations though. It is referred to as an analytic figure in its own right. Average Life uses one of a number of standard pre-payment models (for structured finance at least). For MBS, the average life includes some calculations to take account of pre-payments on the underlying mortgages. This takes account of the possibillity of borrowers paying early. This has to be modeled or forecast (not given) as it's a function of market conditions and interest rate. You would not see this in a market data feed. When you model MBS you calculate Average Life as part of the model i.e. you estimate the percentage of prepayment in the next x length of time and factor this into the Average Life. Refers to Weighted Average Time to receipt of future cash flows. For MBS, early payments will shorten the Average Life. For Student Loans, Credit Card, Loan etc, i.e. all Pool Backed (any bond that has securitized debt). Other bonds: Sinking Funds etc., also Early Payment - partial Call for a corporate / regular bond. Early Payment for pass through has the same effect. Sinking Fund: Each payment is part principal and part interest, this is implicit in the overall definition of "Early payment".
average life
the frequency at which payments on the principal must be made
legal working-age person that does not live in an institution (for example, a correctional facility, long-term care hospital, or nursing home), and is not on active military duty
The working-age population is the total population in a region, within a set range of ages, that is considered to be able and likely to work. The working-age population measure is used to give an estimate of the total number of potential workers within an economy. For example, in the U.S., it is 16, whereas in Canada it is 15.
person who has attained the age of majority as defined in some jurisdiction and who is allowed to conduct a business or any other occupation on his or her own behalf or for their own account
indicates the notional monetary amount, determined based on reference data, market rates or some other agreed method associated with some offering
links a party in the role of outfitter, provisioner, distributor, etc. to something that they provide
contract terms that specify the formal rights and obligations of borrower and lender under a contract in which funds are lent from the one party to the other
These may be terms in a loan contract (including for example a mortgage contract) or they may be the contractual terms of a debt security.
indicates a member of the board of directors of the organization
indicates the premium paid to a bond holder when the bond is called
share whose payment status indicates that none of the market value has been received by the company for the shares
nil paid share
entity-specific credit event involving a temporary suspension of payments until related issues are resolved
moratorium
A moratorium may be a legally-mandated hiatus in debt collection as a part of a bankruptcy process.
market rate that is a rate of interest paid by or agreed among some bank or set of banks
The reference rate is a moving index such as EURIBOR, the prime rate or the rate on benchmark U.S. Treasuries.
any financial institution engaged in the business of receiving demand deposits from the public or other institutions
12 U.S. Code Section 1813 - Definitions, see, for example, http://www.law.cornell.edu/uscode/text/12/1813
value for something discernible for which evidence can be obtained
Derivatives, such as certain exotics, can be based on values ascribed to virtually anything, including weather. Typically, however, a reference value refers to something that can be readily observed in the marketplace, such as a quoted rate (e.g., interest rate, exchange rate), index value, commodity price, stock price, economic indicator, or something similar as of some point in time.
links an abbreviated period at the start or end of some schedule to the overall schedule
default event involving non-payment of several installment payments as scheduled in the terms of the agreement, or non-payment of a call by the beneficial owner
installment default
The latter may result in a court action by the issuer or the sale of the securities to recover costs and/or a forfeit of partially paid securities.
any institution, other than a bank or an organization operating under section 25 of the Federal Reserve Act [12 U.S.C. 601 et seq.], organized under the laws of any State of the United States, or the District of Columbia which maintains credit balances incidental to or arising out of the exercise of banking powers and engages in the business of making commercial loans
negotiable commodity that is a freight index route
freight resource
indicates the total the amount paid at the closing of a real estate transaction, i.e., at the time when the title to the property is conveyed (transferred) to the buyer
Closing costs may be incurred by either the buyer or the seller, and may include fees paid by either or both parties for the preparation and recording of documents, title service costs, such as for title search and insurance (typically paid by the seller, depending on the jurisdiction), other recording costs, other document or transaction stamps or taxes, brokerage commissions, survey, appraisal, inspection and other such fees, home warranties, private mortgage insurance (PMI), and so forth.
legal authorization given by one party (the principal) to another (the agent or attorney-in-fact) to perform certain acts on the principal's behalf
The appointment can be effective immediately or if the principal is unable to make decisions or perform certain actions on their own. It may be a (1) general power of attorney that authorizes the agent to act generally on behalf of the principal, such as to transfer funds from one account to another, pay debts, make investments, and so forth, or (2) limited to a specific act or situation, such as for management of an individual's finances in a single account, such as a brokerage account, or for management of healthcare. Decisions made and actions taken by an attorney in fact (within the scope of his or her authority) are legally binding on the principal.
security that is registered with some registration authority
formal identity document, issued by a national government, which certifies the identity and nationality of its holder for the purpose of international travel
The elements of identity contained in all standardized passports include information about the holder, including name, date of birth, gender and place of birth.
an event associated with the put schedule for a debt instrument, i.e., an event involving the 'put', or surrender of the instrument by the holder
indicates the specific terms related to repayment of principal as specified in the instrument or a related contract document
bond issued specifically to fund climate or environmental projects
These bonds are typically asset-linked and backed by the issuer's balance sheet. Green bonds finance projects aimed at energy efficiency, pollution prevention, sustainable agriculture, fishery and forestry, the protection of aquatic and terrestrial ecosystems, clean transportation, sustainable water management and the cultivation of environmentally friendly technologies, and often include incentives such as tax exemption.
responsible party who manages a client's account and oversees their relationship with the service provider
legal document stating the objectives, risks and terms of investment involved with a private placement
An offering memorandum serves to provide buyers with information on the offering and to protect the sellers from the liability associated with selling unregistered securities. It includes information such as the financial statements, management biographies, a detailed description of the business, etc.
fixed-float single currency interest rate swap in which interest payments are netted, the notional principal does not change, and there are no embedded options
investment fund run by a financial intermediary on behalf of an organization and its employees/members
pension fund
A pension fund is a common asset pool meant to generate stable growth over a long-term investment horizon.
the day of the month on which payments on the principal must be made
schedule specifying the date(s) and change in a contractual term(s), e.g., rate or notional amount, for a contract that has a feature where stipulated changes occur at specified intervals or on specified dates
window following any payment due date during which a party must fulfill its obligations before a failure to pay credit event occurs
has grace period
Note that this may be a period denominated in business days or calendar days.
with respect to a debt: the value of an obligation, such as a bond or loan, raised and that must be repaid at maturity; for investments: the original amount of money invested, separate from any associated interest, dividends or capital gains
preferred share that confers exactly one vote per share, may be exchanged for securities of another issuer, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic stated income and dividends not paid in any year accumulate, and is registered
preferred, voting, redeemable exchangeable, cumulative, registered share
registered agent and financial service provider that advises high net worth individuals on investments and manages their portfolios
card product card typically provided by a depository institution allowing the holder to transfer money electronically to another account when making a purchase
sequence of characters uniquely identifying a specific sustainability-related key performance indicator
sustainability key performance indicator identifier
preferred share whose dividend rate varies according to some benchmark
preferred share with adjustable rate dividend
retractable preferred share whose redemption date can be modified
retractable preferred share with extendable redemption date
way of addressing an aim or problem characterized by high-level planning and systematic execution, without presupposing scope or granularity
person who is considered competent, under the circumstances, to enter into a contract, conduct business, or participate in other activities that generally require the mental ability to understand problems and make decisions on his or her own behalf
The definition of mental competence, and potentially of the age of majority, is a function of the situation and law in a given jurisdiction.
happening of an OccurrenceKind, i.e., an event
Each occurrence has a date time stamp, which identifies when the event occurred, and, optionally, a location (possibly virtual), that identifies where the occurrence happened.
In order for other ontologies to accept FinancialDates without committing to the particular notions of 'Occurrence' and 'OccurrenceKind' that is modeled here, all aspects of Occurrences are captured in this ontology.
overall level of a given rate, calculated as the sum of some selected observed values of the rates for a particular reference rate, foreign exchange rate, lending rate, or other market rate divided by the number of samples collected over the course of a twenty-four (24) hour period for a specific date
equity that is manifested in the form of shares in an entity, fund or structured product
preferred share that confers exactly one vote per share, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic income whose dividend rate is set periodically, and is registered
preferred, voting, redeemable exchangeable, adjustable income, registered share
securities offering whereby investment bankers commit to doing their best to sell the securities offered, but do not assume the full risk of an underwriter
In a best efforts offering, the agreement is strictly an agency arrangement, with no obligation on the part of the agent to purchase the securities. They act as a broker, in other words.
specific set of digits between 00 and 99 assigned to a delivery point
When combined with the ZIP + 4 code, the delivery point code provides a unique identifier for every deliverable address served by the USPS. The delivery point digits are almost never printed on mail in human-readable form; instead they are encoded in the POSTNET delivery point barcode (DPBC) or as part of the newer Intelligent Mail Barcode (IMB).
non-physical, tangible asset whose value is derived from a contractual claim, such as bank deposits, bonds, stocks, rights, certificates, and bank balances
Financial assets are typically more liquid than other tangible assets, such as commodities or real estate. Financial assets may not cover all assets that might be included on a balance sheet, and do not include tangible, physical assets or intangible assets such as intellectual property.
savings bank that has a state affiliation
the capacity of some natural person to sign agreements on the part of some organization or legal person
indicates the vendor in the context of a sales transaction
has seller
indicates the date a contract, relationship, or policy comes into force
identifies a controlled organization over which the member has some measure of control
bond indexed to inflation so that the principal or interest payments rise and fall with the rate of inflation
Inflation-linked bonds are primarily issued by sovereign governments, such as the U.S. and the UK.
default event that is not repairable
hard credit event
subset of the civilian, non-institutional population considered to be part of the labor force during a given reporting period
employee who is qualified and authorized to review and verify the accuracy of financial records and evaluate internal controls and compliance
leg of a swap in which the income generated by some underlier is paid
return leg
The return, including income from a tangible asset, the constituents of an index, or a notional/specified amount of some asset (e.g. number of shares, amount of a commodity, etc.), may be limited to the dividend or interest amounts on the underlying (simple return), or total return including capital gains and/or the appreciation or decrease in value of the asset (or index constituents).
indicates the specific date and time associated with a given price
has trading date time
report covering the findings of a property inspection
selected group of currencies, in which the weighted average is used as a measure of the value or the amount of an obligation
A currency basket functions as a benchmark for regional currency movements; its composition and weighting depends on its purpose.
preferred share that confers zero votes per share, may be exchanged for securities of another issuer, may be redeemed at the option of the issuer and/or of the shareholder, provides the same dividends as common/ordinary shareholders, and is registered
preferred, non-voting, redeemable exchangeable, normal income, registered share
contractual agreement in which a debtor receives something of value and typically agrees to repay the creditor by some date in the future, in some form (e.g., cash, securities, etc.), generally with interest
financial instrument classifier for a group of securities that exhibit similar characteristics, behave similarly in the marketplace and are subject to the same laws and regulations
Asset class means the broad category of goods, services or commodities, including any 'excluded commodity' as defined in CEA section 1a(19), with common characteristics underlying a swap. The asset classes include credit, equity, foreign exchange (excluding cross-currency), interest rate (including cross-currency), other commodity, and such other asset classes as may be determined by the Commission.
The three main asset classes are equities, or stocks; fixed income, or bonds; and cash equivalents, or money market instruments. Some investment professionals add real estate and commodities, and possibly other types of investments, to the asset class mix.
any office or any place of business located in any State of the United States at which deposits are received
foreign exchange service involving the conversion of currency of one country or group of countries for another, typically, but not always, as a counter transaction
A currency exchange service may be provided by a stand-alone business or may be part of the services offered by a bank or other financial institution. The currency exchange profits from its services either through adjusting the exchange rate or taking a commission.
provision indicating that notification is required prior to the occurrence of a relevant event
part of an organization, such as a line of business, that may have separate accounting and reporting requirements
agency of a foreign bank established and operating under the laws of any state that is not insured or regulated by the Federal Deposit Insurance Corporation (FDIC)
uninsured state agency of foreign banking organization
publisher that packages and makes analytical and statistical data available
registry for registering and maintaining information about business entities
regular, contract-specific schedule including the dates on which a rate reset, and corresponding actual rate, is recalculated
indicates that the entity considered the 'start node' or consolidated entity (child) is an international subsidiary of the 'end node' (parent) in the jurisdiction of the child
derivative instrument whereby counterparties agree to exchange periodic streams of cash flows or liabilities from two different financial instruments with each other
The notional amount, effective date and termination date are some of the properties that each swap leg has that are taken from the swap contract.
Usually, the principal does not change hands. Each cash flow comprises one leg of the swap. One cash flow is generally fixed, while the other is variable, that is, based on a a benchmark interest rate, floating currency exchange rate or index price.
The underlying instruments can be almost anything, representing various asset classes, but most swaps involve cash flows (streams of payments or other commitments over time) based on a notional principal amount that both parties agree to.
recurrence interval that is defined as the nth day of some calendar period (such as a calendar month), and a time direction (forward from the beginning of the month, or backwards from the end)
The last day of each quarter, specified as RelativeDay 1, and TimeDirection set to FromEnd.
The nth day is an ordinal number, not a cardinal number. '1' means the first day of the calendar period.
registry used to manage security identifiers and related information
Securities registries may be managed by an exchange, clearing house, custodian, bank, or other financial services provider.
indicates the date by which an executed order or transaction must be settled
Settlement might involve either a buyer paying in cash or a seller delivering the relevant instrument(s) and receiving the proceeds as specified by the terms of a given transaction.
issuer that issues securities that are excused from certain regulatory reporting requirements
In general, these include governments and issuers of tax exempt securities such as municipalities, banks and depository institutions, and authorized insurance companies, railroads and public utilities, and certain non-profit organizations.
indicates the per unit value of a given commodity as of the date that the contract is executed
has commodity value as of execution date
bond that regularly pays down the principal (face value) on the debt along with its interest expense over the life of the bond
event that relates to or triggers some aspect of a credit default swap
triggering event
A triggering event is typically a credit event, but could be anything that happens in the marketplace. For example, a weather-specific contract could be triggered by a hurricane - which wouldn't be considered a credit event per se.
a certificate of deposit with a fixed interest rate issued in U.S. dollars outside the jurisdiction of the Federal Reserve, held at banks outside of the United States, including branches of U.S. banks located outside of the U.S.
eurodollar deposit
A bank in Japan or Singapore may accept dollar deposits, but these are still called Eurodollar deposits. The market also includes other currencies, so there are Eurosterling, Euroyen, Euroswiss, etc. Eurocurrency is the general term for any currency deposited in bank branches outside countries where it is the national currency.
contractual element that specifies the circumstances under which the parties can dissolve their legal relationship and discontinue the fulfillment of their obligations under the contract
termination provision
Common reasons for termination include mutual consent, certain notices, breach or failure of a precedent or condition, insolvency, change in control, the occurrence of certain events, and court orders that prohibit continuation of the contract. Termination provisions may include whether they are mutual or unilateral, and may include rights with respect to any cure.
ratio of a quantity index of value added to a quantity index of capital input
capital productivity, based on value added
The capital productivity index shows the time profile of how productively capital is used to generate value added. Capital productivity reflects the joint influence of labour, intermediate inputs, technical change, efficiency change, economies of scale, capacity utilisation and measurement errors.
Changes in capital productivity indicate the extent to which output growth can be achieved with lower welfare costs in the form of foregone consumption.
pool consisting of financial instruments that may be included in the same investment vehicle
asset that is a movable item or possession not fixed to land
personal property
Personal property may include tangible assets, such as machinery, furniture, vehicles, artwork, and jewelry, regardless of whether such assets are owned by a person or organization, and intangible assets, including but not limited to intellectual property and financial instruments.
an undertaking the business of which is to take deposits or other repayable funds from the public and to grant credits for its own account, and to which authorisation has been granted to operate within the European Union and European Economic Area countries (EEA)
derivative instrument whose primary underlying notional item is based on something related to the weather, for example, the average temperature in Chicago in January
CFTC glossary, https://www.cftc.gov/LearnAndProtect/EducationCenter/CFTCGlossary/glossary_wxyz.html
In the CFI standard, weather is classified as an environmental resource.
Such a derivative can be used to hedge risks related to the demand for heating fuel or electricity. The underlying 'asset' is not a negotiable commodity per se, but because the weather can impact the prices and other things related to other commodities, weather derivatives are treated as commodity derivatives for regulatory purposes.
depository institution that is not member of the Federal Reserve System (FRS)
Federal Reserve System non-member institution
A non-member bank is a commercial bank that is state-chartered and NOT a member of the Federal Reserve System. It includes all insured commercial banks and industrial banks.
legally competent party that has entered into a binding agreement, accepting and conceding obligations, responsibilities, and benefits as specified
A pool may consist of almost anything brought together for some purpose. It differs from a less formal collection in that there are typically facts defined about the members of the pool and potentially regarding the proportions of those members in the pool. Pool membership may change over time, and certain facts about the pool may also vary over time. However, the basic nature of something as a member of the pool is static while that membership holds.
negotiated understanding between two or more parties, reflecting the offer and acceptance of commitments on the part of either party
agreement
All agreements are time bound, whether implicit or explicitly stated, and thus an agreement reflects a state of affairs that holds for some period of time.
option whose final exercise depends upon the path taken by the price of an underlying instrument, i.e., whose payoff depends on whether or not the underlying asset has reached or exceeded a predetermined price
For a knock-out barrier option, the option is cancelled if the underlying price crosses a predetermined barrier level; for a knock-in barrier option, the option becomes available-for-exercise if the underlying price crosses a predetermined barrier level.
barrier option
A barrier option can be a knock-out, meaning it expires worthless if the underlying exceeds a certain price, limiting profits for the holder and limiting losses for the writer. It can also be a knock-in, meaning it has no value until the underlying reaches a certain price. Barrier options can be puts or calls. Barrier options typically have cheaper premiums than traditional vanilla options, primarily because the barrier increases the chances of the option expiring worthless. A trader may choose the cheaper (relative to a comparable vanilla) barrier option if they feel it is quite likely the underlying will hit the barrier.
Barrier features include any terms related to exercising the option ahead of the expiry date.
formal contract that is written and signed by the parties thereto
taxpayer identification numbering scheme used in the United States to identify business entities
employer identification numbering scheme
financial service provider/publisher responsible for specifying some benchmark interest rate
This is typically a bank, central bank in the case of the publication of bank interest rates, or the committee responsible for publishing interbank rates, such as EURIBOR.
date period before the start of the recurring part of a schedule or after the end of the recurring part, which may be associated with a specific occurrence kind
The Occurrences ontology extends ScheduleStub to 'comprise' an OccurrenceKind. The meaning is that a schedule stub comprises a date period and an event which is scheduled to occur during that date period; in other words that an Occurrence of the OccurrenceKind should happen during the DatePeriod of the ScheduleStub.
A 30 year mortgage calls for monthly payments on the first day of each month, according to a RegularSchedule. If the mortgage does not start on the first day of a calendar month, then an initial ScheduleStub specifies the payment due for the DatePeriod up to the first day of the next calendar month. Similarly, a final ScheduleStub specifies the last payment due for the DatePeriod after the end of the last full calendar month.
statistical program conducted on a regular basis that provides information on the buying habits of consumers, including data on their expenditures, income, and consumer unit (families and single consumers) characteristics
financial instrument that signifies a unit of equity ownership in a corporation, or a unit of ownership in a mutual fund, or interest in a general or limited partnership, or a unit of ownership in a structured product, such as a real estate investment trust
share
issuer of securities that represent an ownership interest in something
This includes shares that represent equity ownership in a corporation, or ownership in a mutual fund, or an interest in a general or limited partnership, or ownership in a structured product, such as a real estate investment trust.
identifier for a bank account that is an expanded version of the basic bank account number (BBAN), intended for use internationally
For an account in Switzerland, suppose that an example domestic account number is 762 1162-3852.957. Suppose further that the bank identifier portion of that domestic account number is 762, or normalized for the BBAN is '00762'. For that example, the corresponding BBAN is '00762011623852957' and IBAN is 'CH9300762011623852957'.
The IBAN structure is defined in ISO 13616-1 and consists of a two-letter ISO 3166-1 country code, followed by two check digits and up to thirty alphanumeric characters for a BBAN (Basic Bank Account Number) which has a fixed length per country and, included within it, a bank identifier with a fixed position and a fixed length per country. The check digits are calculated based on the scheme defined in ISO/IEC 7064 (MOD97-10).
Note that international bank account numbers are formatted uniquely by country. A description of the country-specific formats is available from SWIFT (https://www.swift.com/), which is the ISO registrar for ISO 13616.
indicates at least one date period used to calculate the deviation between an anticipated/expected dividend and the actual dividend issued during that period
has dividend adjustment period
indicates an address at which an organization carries out operations
registry used by a national numbering agency to manage the financial instrument identifiers and related information that it registers
National Securities Identifying Number registry
indicates the main address at which communications may be delivered for the organization
floating leg of a swap that depends on some statistical measure of the performance of the underlier
exercise terms that stipulate that an option may only be exercised on predetermined dates until the first step is reached, but not after that point
canary exercise terms
bond issued with a coupon rate of zero and that trades at a deep discount to face value
The principal amount accretes over time at a constant accrual rate and is redeemed at full face value at maturity. In effect, the accrual rate is the coupon rate or yield which is added to the outstanding principal rather than being paid out to investors.
Fannie Mae also issues zero-coupon callable debt securities. Zero-coupon notes are debt securities on which no coupon interest is paid to the investor. Rather, the security is purchased at a discounted dollar price and matures at par. If the option on a callable zero-coupon security is exercised, it is redeemed at a higher dollar price than the original issue price. The yield for a callable zero-coupon security is based on the difference between the original discounted price and the principal payment at the call date.
bond issued by a company in order to raise financing
Note that some classification schemes consider any bond except those issued by a government in its own currency to be a corporate bond, for example, a bond issued by Canada in US dollars might be classified as a corporate bond. Bonds issued by multinational / supranational organizations such as the European Bank for Reconstruction and Development (EBRD) may also be considered corporate bonds rather than government bonds.
Corporate bonds are issued for purposes such as mergers and acquisitions, business expansion, or to cover ongoing operational needs, and are typically longer-term debt instruments that have a maturity of at least one year. Corporate debt instruments with maturity shorter than one year are referred to as commercial paper.
position in an equity instrument
equity position
certificate that reflects underlying price moves 1:1 (adjusted by conversion ratio and any related fees), in which the associated risk is comparable to direct investment in the underlying asset(s)
Tracker certificates can be purchased on stock exchanges which they are listed on. Many of these certificates track underlying assets at a ratio of 1:100. That means that an investor can invest just a fraction of the amount which would be required to buy the actual underlying asset. For example: You invest in a tracker certificate which is based on a stock basket with a value of 10,000 Euros. Because the tracker certificate uses a ratio of 1:100, you only need to pay 100 Euros for the certificate. If the price of the underlying stocks goes up by 10 percent (to 11,000 Euros), the value of the certificate will also go up by 10 percent (to 110 Euros).
Trackers can be used to invest in the performance of multiple stocks, for example. A tracker certificate is a structured instrument that allows the investor to invest in an underlying asset without actually owning the asset. From an investor perspective, tracker certificates work much like investment funds. The tracker follows the price of an underlying asset (one or more stocks, for example). The investor buys a certificate based on the tracker. If the value of the underlying asset goes up, the value of the certificate goes up with it. If the underlying asset loses value, the certificate loses value.
tracker certificate
Some tracker certificates have an expiry date. That means they only track an underlying asset for a predetermined length of time (one year, for example). The certificate matures at the end of that period, at which point you as the investor are paid out its going value at the time of expiry.
Unlike investment funds – which are divided into shares and owned by investors – tracker certificates are simply debt claims against the issuer (the bank which offers them, for example). That means the underlying asset which you are investing in does not belong to you, but to the issuer. Shares of investment funds, on the other hand, are classified as segregated assets in some jurisdictions, such as Switzerland, and are owned by you as the shareholder rather than by the fund managers. In practice, investors are not likely to notice the difference. But whether you hold tracker certificates or fund shares makes a big difference when an investment company becomes insolvent. Tracker certificates are not protected against issuer bankruptcy, and fall into the pool of general debt claims against the bankrupt party. If the issuer of a tracker certificate goes bankrupt, you may very likely lose all or part of the money which you invested in the tracker certificate. This danger is known as counterparty risk. By investing in tracker certificates, you agree to carry the counterparty risk.
Tracker certificates can also be used to profit off negative price developments. This is the case with so-called bear tracker certificates which take a short position on the underlying asset. Note that tracker certificates do not normally pay out dividends. If one holds a certificate which tracks the stock of a company which pay dividends, they will not receive them. However, they may receive some form of compensation from the certificate’s issuer in some cases.
exchange that is operated or maintained by an operator registered under certain securities regulations that brings together purchasers and sellers of capital market products
recognised market operator
recognized market operator
terms indicating when a convertible bond can be converted to another security (usually a publicly traded share issued by of the same issuer)
issuer granting the rights defined in the option in exchange for some consideration
option issuer
branch that resides outside of the United States whose parent is located outside of the United States that is managed by a US branch or agency of the foreign bank
foreign branch of foreign bank managed by US office
financial institution with trust powers, designated by the issuer, that acts, pursuant to a bond contract, in a fiduciary capacity for the benefit of the bondholders in enforcing the terms of the bond contract
In many cases, the trustee also acts as custodian, paying agent, registrar and/or transfer agent for the bonds.
preferred share that confers zero votes per share, may be exchanged for securities of another issuer, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic income whose dividend rate is set periodically, and is registered
preferred, non-voting, redeemable/exchangeable/extendable, adjustable income, registered share
rate-based derivative whose underlier is an interest rate
For example, interest rate derivative strategies are the simultaneous trading of two or more rate contracts in which two counterparties agree to exchange interest rate cash flows on defined dates during an agreed period, based on a specified notional amount, from a fixed rate to a floating rate, floating to fixed, fixed to fixed, or floating to floating.
ISO 10962:2019, Securities and related financial instruments - Classification of financial instruments (CFI) code, Fourth edition, 2019-10
entitlement that combines the structure of an open-end certificate with a leverage option with no fixed term, making leverage available without a term restriction, and whose payoff depends on whether or not the underlying asset has reached or exceeded a predetermined price
mini-future certificate
The price of a mini-future always corresponds to its intrinsic value, i.e. the capital outlay, plus the bid-ask spread. The financing costs associated with building up the leverage effect are offset against the capital outlay on a daily basis, thereby eliminating the need for a premium. Investors have to pay only financing costs they actually utilize. In contrast to options, factors like volatility have no influence at all on the price of mini-futures.
date on which a specific transaction was initiated
asset that must be delivered as a part of the process of settling a credit default swap
deliverable asset
If the reference obligation is a bond, the deliverable asset (obligation) may be a different bond. If it is a loan, the deliverable asset may involve assigment of a loan.
sequence of characters representing some currency
The first (left-most) two characters of the ISO 4217 3-letter currency identifier relate to the currency authority that issues the currency, and is, in most cases the ISO 3166-1 alpha 2 code for the geopolitical entity whose central bank is the issuer. The third (right-most) character of the identifier (alphabetic code) is an indicator derived from the name of the major currency unit or fund. If the currency is not associated with a single geographical entity as described in ISO 3166-1, typically a specially allocated identifier (alpha-2 code) is used to describe the currency authority. This code has been allocated by the Maintenance Agency from within the user-assigned range of codes XA to XZ specified in 8.1.3 of ISO 3166-1:2013. The character following X will be a mnemonic, where possible, derived from the name of the geographical area concerned.
indicates that the notional amount is constant through the life of the contract
has constant notional amount
specifies the account number displayed on the face of the card
modeled independently of 'identifies' in order to circumvent circular reasoning challenges
state-owned investment fund that consists of pools of money derived from a country's reserves
sovereign wealth fund
Sovereign wealth funds include the International Monetary Fund, whose corresponding legal entity is a polity.
social wealth fund
sovereign investment fund
owner of an interest in a limited liability company who also runs the day-to-day business operations
financial service that combines financial and investment advice, accounting and tax services, retirement planning and legal or estate planning for one set fee
relates a stage in a product or trade lifecycle or process to the lifecycle or process that it is a stage of
indicates the percentage of the premium paid by the holder in the case of a double barrier option
has second rebate amount
measure of volatility that uses actual values for pricing, rates, and other measurements calculated over some prior period
exercise terms that stipulate that an option may only be exercised on predetermined dates within some exercise window, often on one day each month or at the date of expiration
Bermudan exercise terms
The Bermuda option is named as such because its exercise dates are more flexible than European options and less flexible than American options. Thus, it is in the middle, just like Bermuda is between Europe and America. Bermuda options are also referred to as Mid-Atlantic, Quasi American, or Semi-American options.
indicates a contract that was executed prior to and is replaced by this contract
indicates the primary contract referenced by a subordinate agreement, such as a collateral agreement
This property may also be used as the basis for linking agreements based on priority, such as linking a second or junior lien to the primary lien on some collateral
structured collection of prices, such as market prices for some index or security, such that volatility or other analyses may be performed over the structure
Historical prices are needed not only for various statistical analyses but for determining best prices for certain kinds of options, for example. Note that prices may be quoted or calculated.
account held by the borrower associated with a specific loan
contract that (1) puts an indemnity cover into effect, (2) serves as a legal evidence of the insurance agreement, (3) sets out the exact terms on which the indemnity cover has been provided, and (4) states associated information such as the (a) specific risks and perils covered, (b) duration of coverage, (c) amount of premium, (d) mode of premium payment, and (e) deductibles, if any
specifies the ceiling on the amount of credit that can be drawn by the borrower in a single request with respect to a specific agreement (e.g. for line of credit) within the specified credit limit
indicates a period of time in which investors can commit to purchase shares (or units) to be issued
structured product that provides a predefined yield in return for a downside risk
Well-known yield-enhancement products include reverse convertibles. They provide a predetermined yield per annum in return for the willingness of the investor to absorb downside risk of for example a stock, index, currency-pair or fund. Reverse convertibles come in a broad range of variations (with or without barrier, multiple underlyings and/or callability).
yield-enhancement product
high-level classifier for an individual transaction
collateral agreement that governs the exchange of collateral between parties to mitigate counterparty credit risk
credit enhancement agreement
A credit enhancement agreement ensures that collateral or a guarantee is established to secure obligations under the agreement. Features may include specification of the kinds of collateral or guarantee that may be used together with the relevant valuation methods, thresholds for the value of the collateral and haircuts applied based on mitigating market risk, margin requirements, dispute resolution with respect to collateral valuation and margin calls, and other operational details related to the transfer, substitution, and return of the collateral if established or posted.
financial collateral arrangement
collateralization
margin arrangement
credit support agreement
indicates the specific date when the initial exchange of assets or funds takes place
For a credit agreement, this is the initial funding date, such as the funding of the principal amount, or a portion thereof, but for other kinds of instruments, it may be something else. In the context of contracts related to swaps, options, or other derivative instruments, the initial exchange date marks the point where the parties legally commit to the terms of the agreement and exchange the initial required amounts.
condor strategy consisting of two puts (one long and one short) and two calls (one long and one short), and four strike prices, all with the same expiration date
iron condor
The iron condor earns the maximum profit when the underlying asset closes between the middle strike prices at expiration. In other words, the goal is to profit from low volatility in the underlying asset.
taxable municipal bond issued through December 31, 2010 under the American Recovery and Reinvestment Act of 2009 (ARRA)
BABs may be direct pay subsidy bonds or tax credit bonds.
indicates the status of a specific market identifier code (MIC)
the legal jurisdiction under which the legal entity is incorporated
It is the laws of this jurisdiction that cause and allow the legal entity to exist and to incur debt and be sued at law as a legal entity.
strategy for achieving specific business objectives related to sustainability in the context of long-term decarbonization or sustainability transitions
transition strategy
Note that although there are similarities with sustainability business strategies, they are not the same. KPIs and SPTs may, however, be defined similarly for a given project.
monetary price for a financial instrument at some point in time
security price
A security price may be the price that some party is willing to pay, has recently paid, or would like to be paid, depending on the circumstances.
option that gives the holder the right, but not the obligation, to buy or sell a specific futures contract at a specified price on or before the option's expiration date
option on future
role of an individual that has been given the responsibility to act on behalf of another party under some set of guidelines
butterfly strategy that consists of two call options and two put options, three strike prices and the same expiration date
iron butterfly
The key to using this trade as part of a successful trading strategy is to forecast a time when option prices are likely to decline in value generally. This usually occurs during periods of sideways movement or a mild upward trend.
iron fly
a virtual location that may be identified by a network address (an identifier for a node or interface)
collection representing the total membership, or 'universe', of people, resources, products, services, events, or entities of interest for some question, experiment, survey or statistical program
A statistical universe can be a group of actually existing objects (e.g. the set of all stars within the Milky Way galaxy) or a hypothetical and potentially infinite group of objects conceived as a generalization from experience (e.g. the set of all possible hands in a game of poker).
a region of the US identifying the jurisdiction of a Federal Reserve Bank, numbered and named for the city in which that reserve bank is located
The Federal Reserve officially identifies Districts by number and Reserve Bank city. In the 12th District, the Seattle Branch serves Alaska, and the San Francisco Bank serves Hawaii. The System serves commonwealths and territories as follows: the New York Bank serves the Commonwealth of Puerto Rico and the U.S. Virgin Islands; the San Francisco Bank serves American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands. The Board of Governors revised the branch boundaries of the System in February 1996.
standard deviation for some measure over a specific reference period
Standard deviation applied to the annual rate of return of an investment provides insights on the historical volatility of that investment. The greater the standard deviation of the price of a security, the greater the volatility. Multiplying monthly standard deviation by the square root of twelve (12) is an industry standard method of approximating annualized standard deviations of monthly returns.
futures contract whose underlying asset is at least one swap contract
future on swap
indicates the period of time for which a callable security cannot be called and only interest coupon payments are received by the security holder
With a 10-year noncall 3-year ("10nc3") debt security, the security cannot be called for the first three years.
specifies the issuer in which a shareholder holds an equity position
system used in the U.S. to facilitate the delivery of mail, consisting of a five- or nine-digit code Zone Improvement Plan (ZIP) printed directly after the address, the first five digits (initial code) indicating the state and post office or postal zone, the last four (expanded code) the box section or number, portion of a rural route, building, or other specific delivery location
specifies the financial institution with trust powers, designated by the issuer, that acts, pursuant to a bond contract, in a fiduciary capacity for the benefit of the bondholders in enforcing the terms of the bond contract
aim distinguished by specific scope and measurable criteria, often quantitative and short-term that a party seeks to attain, typically in order to achieve its long-term goals
loan secured by real estate with a provision that the outstanding loan amount may be increased upon mutual agreement of the lender and the borrower
specifies the starting point statistical universe or population used for comparison or analysis
preferred share that confers multiple votes per share, may be exchanged for securities of another issuer, may be redeemed at the option of the issuer and/or of the shareholder, provides the same dividends as common/ordinary shareholders, and is registered
preferred, enhanced voting, redeemable exchangeable, normal income, registered share
basket of debt instruments that include a provision allowing certain subsidiaries within a corporate group, which are not part of the loan guarantee, to incur a specified amount of indebtedness
non-guarantor debt basket
the spread between the yields of two items
not-for-profit corporation set up under specific state legislation, typically to provide some social benefit, without an obligation to maximize shareholder return
This is a US-specific type of non-profit corporation defined in recent legislation in a number of states. In California, for example, benefit corporations may be defined as public benefit or mutual benefit corporations, depending on their purpose.
party to whom some commitment or obligation is owed, either legally or per the terms of an agreement
schedule whose time intervals recur regularly
The BusinessDates ontology extends 'RegularSchedule' with an optional BusinessDayAdjustment that specifies what should happen if a scheduled date falls on a weekend or a holiday.
An ISDA FpML schedule has a specified date (via a convention), and a date roll rule which is specified for the whole schedule and applies to each of the dates returned by the parametric specification of the schedule. It has: (1) a schedule beginning and end; (2) a set of regular repeating periods: the scheduled event takes place once per period; (3) optionally one or two stubs (one start and one end), which may be longer than the repeating period, or shorter. The precise parameters used are: Start of the overall Schedule period: Effective Date End of the overall Schedule period: Termination Date Start of first regular period: not specified (assume Effective Date) Length of each regular period: Frequency (a duration) There are generally three ways in which the regular periods of a parametric schedule may be expressed: first plus last first plus period length last plus period length event date plus period length. In FpML, Roll events (the date that something rolls over from the value used in one period to the value used in the next) is defined in a Roll Convention, which may be a day of the month, a day of the week, or some published set of dates, typically the ISDA quarterly dates for these events. This is therefore the date within the regular period (before adjustments) when the event occurs. This is in addition to a date for the start or end of such a period. In general this applies to the Calculation Schedule (i.e. the event is the calculation event) with other dates specified relative to this, however in principle the other related events (payment and reset or refix) are specified relative to this.
A 30 year mortgage is payable monthly on the 10th of the month, starting July 2015. The mortgage is issued on June 15, 2015 so the first payment is for the period June 15-June 30, and the last payment is for June 1-14 2045. The payment schedule is a RegularSchedule with these properties: * comprises: regular payment OccurrenceKind (with payment details) (see the 'comprises' property of the Occurrences ontology) * hasInitialStub: June 15-30, 2015 for initial payment * hasFinalStub: June 1-14, 2045 for final payment * hasCount: 358 * hasOverallPeriod starting Date: June 15, 2015 with a duration of 30 years * hasRecurrenceInterval: specifies 10th day of each calendar month * hasRecurrenceStartDate: July 1, 2015
A corporate bond pays interest for 10 years starting on the first day of 2015. Interest payments are due 15 days after the expiration of each 6 month period: on July 15 and January 16. The payment schedule is a RegularSchedule, with these properties: * comprises: identifies the interest payment details * overall DatePeriod starting date is '2015-01-01', ending date is '2025-01-15', and duration is 'P10Y15D' * hasCount is 20 (2 payments per year for 10 years) * hasRecurrenceInterval is 'P6M' * hasRecurrenceStartDate is '2015-01-15'
A parametric schedule is a regular schedule for one of the events that occur in a periodic schedule of interest accruals, interest payments, and (for floating rate swapstreams), changes to the interest rate. Parametric schedules may be specified individually but more commonly, calculation events are scheduled, with other dates specified as offsets. In a regular schedule, related dates may be independently parametrically scheduled.
A RegularSchedule is a Schedule defined as a set of Dates that start on a recurrence start date and repeat after each recurrence interval. The size of this set is defined by a count. The 'initial ScheduleStub' associated with a RegularSchedule identifies any special treatment applied before the recurrence start date. Similarly, a 'final ScheduleStub' identifies any special handling at the end of the recurrences. For example, a mortgage loan that is due each calendar month may have an initial payment due before the first calendar month, or a final payment due after the last monthly payment.
Other ontologies can extend RegularSchedule as needed. In particular, the Occurrences ontology extends RegularSchedule to 'comprise' an 'OccurrenceKind'. The intended meaning is that a regular schedule comprises a number of scheduled dates and an event which is scheduled to occur on each of those dates, in other words an Occurrence of the OccurrenceKind should happen on each Date defined by the RegularSchedule.
The recurrence start date can be an ExplicitDate or any kind of CalculatedDate. Hence, the starting date could be relative to another Date (e.g. T+3) or triggered by the Occurrence of an OccurrenceKind, etc. The recurrence start date can also be relative to the starting Date of the overall DatePeriod of the Schedule.
classifier for a derivative relating its strike price to the price of its underlying asset
moneyness
Moneyness describes the intrinsic value of an option in its current state. The term moneyness is most commonly used with put and call options and is an indicator as to the comparative value of the option with respect to its exercise/strike price. Moneyness can be measured with respect to the underlying stock or other asset's current/spot price or its future price.
financial instrument whose value is determined by the market and that is readily transferable (highly liquid)
Cash instruments can be classified into two subgroups, as securities and other cash instruments such as loans and deposits.
credit event that materially impacts an obligation, such as an interest rate reduction, principal reduction, deferral of interest or principal, change in priority ranking, or change in currency or composition of payment
obligation restructuring
limited liability company that has elected to have corporate tax status
limited liability company taxed as a corporation
In the United States, LLCs that elect to be taxed as a corporation do so by filing an IRS Form 8832.
measure of exchange rate fluctuation based on a range of projected values for exchange rates
financial institution that holds customers' securities for safekeeping
The custodian may hold stocks or other assets in electronic or physical form for mutual funds, individuals, and organizational clients.
warrant that permits the holder to acquire a specified amount in a certain currency at a specified exchange rate during a specified period
currency warrant
mandatory corporate action where shareholders are given an opportunity to choose among several options
mandatory with choice corporate action
In case a shareholder does not submit the election, the default option will be applied.
interest rate that does not fluctuate over the lifetime of a loan or other debt instrument
directs and exercises authoritative or dominating influence over some thing that is also owned
basic rule: if x controls y and x owns y then x owns and controls y SWRL rule: controls(?x, ?y), owns(?x, ?y) -> ownsAndControls(?x, ?y)
asset-backed security based on student loan receivables
student loan asset-backed security
The main purpose behind Student Loan ABS is to diversify the risk for lenders across many investors. By pooling and then packaging the loans into securities and selling them to investors, agencies can spread around the default risk, which allows them to give out more loans and larger loans. This way, more students have access to loans, investors have a diversifying investment instrument, and lenders can generate consistent cash flow from their securitization and debt collection services.
If the credit risk of the pool has been decoupled from the institution via an SPV, then student loan asset-backed securities are also structured finance instruments.
legal entity that is entirely or majority owned and controlled by another legal entity
A subsidiary is a separate, distinct legal entity from its parent company(ies) for the purposes of taxation, regulatory compliance, and with respect to liability.
date period used to calculate the difference, if any between an anticipated dividend and the actual dividend distributed in that period
dividend adjustment period
identifies the convention that defines how interest accrues on something, that is the number of days in a month and days in a year that are counted when performing interest accrual calculations
branch of an edge corporation that is located in the United States
swap in which payment streams are referenced to different bases
A basis swap can have two legs of the same tenor but different indices, e.g., 3 month LIBOR vs. 3 month TIBOR. The difference in this case is not driven by different interest rate periods but from different markets, i.e., the difference in efficiency between the two markets. The objective is to hedge against basis risk which is the difference in price between two markets. See also forward swap, as a means for controlling interest rate.
preferred share that confers zero votes per share, may be exchanged for securities of another issuer, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic stated income, and is registered
preferred, non-voting, redeemable/exchangeable/extendable, fixed income, registered share
party that has 100 percent ownership some legal entity
By virtue of holding 100 percent of the equity ownership, the Total Owner also holds 100 percent of the controlling equity, if there is a difference. Therefore it is both a total owner and a total controlling party.
relates a polity to a geopolitical entity where the polity has absolute, supreme and ultimate dominion and authority of a political state subject to no higher power, expressed within its territory in full self-government and in complete freedom from any outside influence
links something to a record that pertains to it
An OccurrenceBasedDate is triggered by an Occurrence that exemplifies the OccurrenceKind.
polity characterized by a union of partially self-governing states or regions under a central (federal) government
The federated sovereignty is the legal entity that can incur debt for a federal government, as distinct from the Federal government.
commodity under the jurisdiction of the regulatory agency, such as the Commodities Futures Trading Commission (CFTF) in the United States, which includes any commodity traded in an organized contracts market
The CFTC polices matters of information and disclosure, fair trading practices, registration of firms and individuals, protection of customer funds, record keeping, and maintenance of orderly options and futures markets in the United States.
convention employed to determine the closing date (from the stated settlement date) in the process of settling a transaction on which securities or interests in securities are delivered, usually against (in simultaneous exchange for) payment of some consideration
This is often stated in the form 'T+n' where n is the number of business days from the specified settlement date (T).
specifies the first date on which the issuer or its agent expects or commits to make a coupon payment
The first coupon payment period can be long or short when this date doesn't coincide with the start of a normal coupon payment period.
The first coupon date sometimes occurs at an irregular time; that is, if the bond pays coupons every six months, the first coupon period may be longer or shorter than six months.
person that is not a member of the military (i.e., that is not on active duty)
owner (person, group of people, or other business entity) that owns, or holds an ownership interest in, a formal business organization
indicates the leg of a return swap that specifies a set payment rate, typically benchmark based but possibly a fixed rate
has funding leg
bond that has no maturity date, i.e., one that pays interest in perpetuity
Perpetual bonds function much like dividend-paying stocks or certain preferred securities. Just as the owner of the stock receives a dividend payment as long as the stock is held, the perpetual bond owner receives an interest payment as long as the bond is held.
unique nine-digit number assigned by the Internal Revenue Service (IRS) to business entities operating in the United States for the purposes of identification
Note that despite the name, the business may not necessarily employ anyone.
account holder to whom a payment card is issued
security identified as a component of a basket of securities
medium of exchange value, defined by reference to the geographical location of the monetary authorities responsible for it
default event that where either an expected principal payment is missed altogether or the amount paid is less than the required amount
failure to pay principal
indicates a constraint, limitation or refinement on something
swap party responsible for making payments for a given leg of the transaction as defined in the contract
managed investment that cannot offer securities to the public
Private funds are not required to be registered or regulated as investment companies under the U.S. federal securities laws. They raise capital from investors through exempt offerings, which means the offering must fall within an exemption from registration under the Securities Act of 1933.
party defined in terms of a function they or it performs
delivery address whose delivery address line uses 'UNIT' followed by the unit identifier, followed by 'BOX' followed by box number, in place of a street address, 'DPO' as the literal value for the city, and the appropriate armed forces subdivision code in place of a subdivision (state) code
relates a swap contract to a leg that is part of that swap
links a monetary amount that is the cost of using credit to the debt that it applies to
catalog of financial products and/or services available for sale with their description and other product details
warrant giving the buyer (holder) the right, but not the obligation, to sell the assets specified (i.e., acquire cash in exchange for the underlying assets, such as stock) back to the issuer at a fixed price or formula, on or before a specified date
put warrant
A put warrant is essentially a company-issued option to sell shares back to the issuer.
four-character (4 alphanumeric) code associated with an organization for the purposes of banking telecommunications
For new BIC registration from an organization not yet identified by a BIC, the party prefix will be allocated at the discretion of the RA. The code will not have a mnemonic or acronym value anymore.
For new BIC registration by an organization already identified with a BIC or an affiliated organization [after the transition period ending November 2018], SWIFT will still reserve the usage of an existing party prefix to these organizations. This legacy rule will be reserved to existing BIC owners. If they wish to preserve this value, no other organization will be allowed to use the same code
multilateral system operated by an investment firm or market operator, which brings together multiple third-party buying and selling interests in financial instruments in the system, in accordance with non-discretionary rules, in a way that results in a contract in accordance with the provisions of Title II of the MiFID II
registered multilateral trading facility
statistical measure that is constrained by features, quantity kinds or units that refine how it is calculated
nine-digit number consisting of five digits, a hyphen, and four digits, which the USPS describes by its trademark ZIP+4
The correct format for a numeric ZIP+4 code is five digits, a hyphen, and four digits. The first five digits represent the 5-digit ZIP Code; the sixth and seventh digits (the first two after the hyphen) identify an area known as a sector; the eighth and ninth digits identify a smaller area known as a segment. Together, the final four digits identify geographic units such as a side of a street between intersections, both sides of a street between intersections, a building, a floor or group of floors in a building, a firm within a building, a span of boxes on a rural route, or a group of Post Office boxes to which a single USPS employee makes delivery.
the process of accumulating interest or other income that has been earned but not paid
There are legal contractual terms for the accrual of interest, as distinct from the payment of interest.
party empowered to act on behalf of the trustee to manage the assets of the trust
agreement to exchange an interest rate commitment on a notional amount at a future date
forward rate agreement
FRA
The FRA determines the rates to be used along with the termination date and notional value. FRAs are cash-settled with the payment based on the net difference between the interest rate of the contract and the floating rate in the market called the reference rate. The notional amount is not exchanged, but rather a cash amount based on the rate differentials and the notional value of the contract.
credit default swap whose underlying reference obligation is an asset-backed security rather than corporate credit
asset-backed credit default swap
ABCDS
In the case of an ABCDS, the buyer receives protection for defaults on asset-backed securities or tranches of securities, rather than protecting against the default of a particular issuer. Asset-backed securities are securities backed by a pool of loans or receivables, such as auto loans, home equity loans or credit cards loans.
entitlement that permits the holder to purchase a specified amount of a financial instrument, commodity, currency or other asset during a specified period at a specified price
warrant
Warrants are for any kind of instrument. Warrants may be privately issued and may not necessarily be traded on an exchange.
card verification value specifically for Mastercard payment cards
contractual element that specifies what should be done with respect to netting when a given contract is replaced with another
novation netting provision
Novation netting contemplates that for each value date and for each currency, the parties agree that all existing contracts will be canceled (discharged and extinguished) and simultaneously replaced by a new contract that aggregates and nets all of the payment obligations of the original contracts. Novation netting occurs immediately when a nettable transaction is entered into.
realization of the lifecycle of a specific product
relates a credit agreement to an account used as the basis for managing transactions
something that another concept stands for, exemplifies, symbolizes, or otherwise mentions
container for records associated with a business arrangement for regular transactions and services
In general, an account is associated with a contractual relationship between a buyer and seller under which payment may be made at a later time. General ledger accounts are an exception to this, however, and typically do not have account holders, including internal account holders. They may, on the other hand, have responsible parties.
preferred share that confers zero votes per share, may be exchanged for securities of another issuer, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic stated income and dividends not paid in any year accumulate, and is registered
preferred, non-voting, redeemable/exchangeable/extendable, cumulative, registered share
age at which someone acquires the capacity to do something that they were prohibited from doing before under the law in some jurisdiction
place of business of a foreign bank, located in any state, at which credit balances are maintained, checks are paid, money is lent, or, to the extent not prohibited by state or federal law, deposits are accepted from a person or entity that is not a citizen or resident of the United States
agency of a foreign banking organization
Obligations shall not be considered credit balances unless they are: (1) Incidental to, or arise out of the exercise of, other lawful banking powers; (2) To serve a specific purpose; (3) Not solicited from the general public; (4) Not used to pay routine operating expenses in the United States such as salaries, rent, or taxes; (5) Withdrawn within a reasonable period of time after the specific purpose for which they were placed has been accomplished; and (6) Drawn upon in a manner reasonable in relation to the size and nature of the account.
depository institution that engages in various financial services, such as accepting deposits and making loans
A commercial bank is a financial institution that is owned by stockholders, operates for a profit, and engages in various lending activities. Commercial banks provide services, such as accepting deposits, giving business loans and auto loans, mortgage lending, and basic investment products like savings accounts and certificates of deposit.
The traditional commercial bank is a brick and mortar institution with tellers, safe deposit boxes, vaults and ATMs. However, some commercial banks do not have any physical branches and require consumers to complete all transactions by phone or Internet. In exchange, they generally pay higher interest rates on investments and deposits, and charge lower fees.
regional government of a city, township, or other administrative subdivision
unique identifier assigned by the Federal Reserve to financial institutions for regulatory and oversight purposes
Research, Statistics, Supervision and Regulation, and Discount and Credit identifier
legally enforceable benefit or entitlement granted to a party within a binding agreement
Contractual rights are established by the terms of a contract, which can be explicit (written) or implied by law, industry standards, or consistent practices.
any company that owns and/or has direct or indirect control of one or more banks; BHCs may also own nonbanking subsidiaries such as broker-dealers and asset managers
A bank holding company may also own another bank holding company, which in turn owns or controls a bank; the company at the top of the ownership chain is called the top holder.
party that is required to pay the amount stated on the bill of exchange to the payee
sequence of characters uniquely identifying a specific sustainability-related performance target
sustainability performance target identifier
measurable performance indicator that is sustainability specific
sustainability key performance indicator
A sustainability KPI must be: (a) relevant, core and material to the borrower's overall business, and of high strategic significance to the borrower's current and/or future operations; (b) measurable or quantifiable on a consistent methodological basis; and (c) able to be benchmarked (i.e. as much as possible using an external reference or definitions to facilitate the assessment of the SPT's level of ambition). A clear definition of the KPI(s) should be provided by the borrower and should include the applicable scope or parameters, as well as the calculation methodology, a definition of a baseline and be benchmarked against an industry standard and/or industry peers where feasible.
collection of investments (financial assets) such as stocks, bonds and cash equivalents, as well as mutual funds, real estate, and so forth
Portfolio holdings may cover a variety of investment products, including stocks, bonds and mutual funds to options, futures and exchange-traded funds, and relatively esoteric instruments such as private equity and hedge funds. The number and nature of holdings contribute to the degree of diversification of a portfolio. A mix of stocks across different sectors, bonds of different maturities, and other investments would suggest a well-diversified portfolio, while concentrated holdings in a handful of stocks within a single sector indicates a portfolio with limited diversification.
lower tranche boundary of a tranche defined as a percentage of the value of the total pool of collateral, either at issuance or as of some point in time
attachment point
Alexander Veremyev, Peter Tsyurmasto, and Stan Uryasev. "Optimal Structuring of CDO contracts: Optimization Approach". https://www.ise.ufl.edu/uryasev/files/2012/10/structuring_CDO_JCR_oct12.pdf
A CDO tranche becomes liable for losses when the total amount of defaults or losses in the underlying debt pool exceeds a certain threshold, called the attachment point. The attachment point is expressed as a percentage of the total value of the debt pool. In other words, the attachment point is the level of subordination above which a given tranche stands. Note that the notion of 'liability for loss' is in a financial or econonmic sense rather than a legal sense.
The higher the attachment point, the lower the risk and the return for the tranche. The lower the attachment point, the higher the risk and the return for the tranche. The most senior tranches have the highest attachment points and are paid first from the cash flows of the debt pool. The most junior tranches have the lowest attachment points and are paid last from the cash flows of the debt pool. The junior tranches also bear the first losses when defaults occur in the debt pool.
concatenation of an entity's business number, the 'RR' abbreviation and a 4-digit subaccount number used for registered charity contribution
An organization may have more than one registered charity account through its subunits, this is handled through additional 4-digit subaccount numbers. This is used as both an account and an identifier for the registration.
bond whose coupon rate and principal amount are fixed at the time of origination or sale and remain constant while the security is outstanding
financial service designed to assist investors in using capital to create more money, either through income-producing vehicles or through more risk-oriented ventures to result in capital gains, including but not limited to providing investment advice, asset and portfolio management, and brokerage services
indicates the party (legal person or formal organization) that employs someone
weighted average time to maturity of a portfolio of asset-backed securities (ABS) or mortgage-backed (MBS) securities
weighted average remaining term
WART
The longer the WART, the longer the portfolio's assets will take to mature, on average. WART is often used in relation to mortgage-backed securities (MBS) but can also be applied to any portfolio of fixed-income securities. WART is closely related to weighted average loan age (WALA), which is its inverse.
weighted average remaining maturity
offering of a security (or securities) for sale
If the offering is public, then it can only be made after regulatory registration requirements have been met. The securities may be new or a secondary offering of a previously issued security, and may include stock, multiple classes of equity shares, municipal or other government bonds, and so forth. Offerings, especially to the investment public, are typically made by an investment banker, or syndicate of investment bankers.
expected value of the underlying asset at maturity calculated as of some date during the lookback period
projected value at maturity
financial service provider that evaluates and assumes another party's risk for a fee, such as a commission, premium, spread or interest
last reported price at which a security was sold
market price
identifies a party as one that has the legal, medical or financial capacity to act on behalf of someone else under specific circumstances
preferred share that confers zero votes per share, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic stated income, and is registered
preferred, non-voting, redeemable extendable, fixed income, registered share
scheme for classifying the kinds of actions and events that may be announced, initiated or carried out by an organization that affects a legal entity or the securities it issues
The set of corporate actions and income events included herein are a subset of those specified in a combination of ISO 15022 Securities - Scheme for Messages (Data Field Dictionary) and the GLEIF LEI-related corporate actions. Other schemes that are specific to a custodian, depository, or regulatory agency may also be important, and should take a similar approach with respect to classification.
amount of readily available cash in banknotes and coins
This is an actual sum of money, not the measure of a sum of money in monetary units, although it has the same basic properties (decimal number with a currenct unit).
indicates the leg of a return swap whose payments are based on the return of an underlying asset
has return leg
preferred share that confers less than one vote per share, may be redeemed at the option of the issuer and/or of the shareholder, provides the same dividends as common/ordinary shareholders, and is registered
preferred, restricted voting, redeemable, normal income, registered share
provision of a redemption feature defining notification requirements
preferred share that confers exactly one vote per share, may be exchanged for securities of another issuer, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic stated income, dividends not paid in any year accumulate, and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, voting, redeemable exchangeable, cumulative participating, registered share
not-for-profit corporation set up under specific state legislation as a business entity for homeowners' associations
A common interest development is typically a type of housing, composed of individually owned units, such as condominiums, townhouses, or single-family homes, that share ownership of common areas, such as swimming pools, landscaping, and parking. Common interest developments (also known as community interest developments or CIDs) are managed by homeowners' associations.
measure of the average hourly wage an employee makes over the reporting period
indicates any subordinate agreement, such as a collateral agreement
has a value as of the date of acquisition, expressed as an amount of money or goods
interest rate swap in which fixed interest payments on the notional are exchanged for floating interest payments
indicates a fixed or limited period for which something, e.g., a contract, an investment, or an offer, lasts or is intended to last
has term
hybrid business entity having characteristics of both a corporation and a partnership or sole proprietorship (depending on how many owners there are)
A private company with limited liability, although a business entity, is not a corporation. The primary characteristic this legal form shares with a corporation is limited liability, and the primary characteristic it shares with a partnership is the availability of pass-through income taxation. It is often more flexible than a corporation, and it is well-suited for companies with a single owner.
satisfies a requirement for payment of some claim, debt, or other obligation
securities offering whereby the underwriter purchases the securities outright for their own account
swap that depends on some statistical measure of the performance of the underlier
negotiable commodity that includes ammonia, diammonium phosphate (DAP), potash, sulphur, urea, urea and ammonium nitrate (UAN)
fertilizer resource
indicative spot selling market rate as observed by the reporting source
combination of resources for a common purpose or benefit
preferred share that confers less than one vote per share, may be exchanged for securities of another issuer, may be redeemed at the option of the issuer and/or of the shareholder, provides the same dividends as common/ordinary shareholders, and is registered
preferred, restricted voting, redeemable exchangeable, normal income, registered share
real or personal property (assets), including but not limited to financial assets, to which one holds title and of which one has possession
Note that a holding may refer to a single asset, such as a piece of real estate, a portfolio of assets, multiple portfolios, and so forth, and is frequently aggregated over multiple assets.
classifier of corporate actions that involve improving liquidity or changing the overall structure of the organization through diversification, combining and closing parts of the business, etc, to increase long-term profitability
business strategy classifier
branch of a foreign bank established and operating under section 3102 of CFR Title 12, Chapter 32 and section 4 of the International Banking Act of 1978
federal branch of foreign banking organization
measure of the extent to which the estimate of a characteristic from different possible samples of the same size and the same design differ from one another
The word 'sampling' can usually be omitted, as being defined by the context or otherwise understood. The sampling variance of a statistic is the square of its standard error.
the scheme defining the North American Industry Classification System (NAICS) Codes
North American Industry Classification System scheme
The North American Industry Classification System (NAICS) is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy. NAICS was developed under the auspices of the Office of Management and Budget (OMB), and adopted in 1997 to replace the Standard Industrial Classification (SIC) system. It was developed jointly by the U.S. Economic Classification Policy Committee (ECPC), Statistics Canada and Mexico's Instituto Nacional Estadistica y Geografia, to allow for a high level of comparability in business statistics among the North American countries.
security price specified in comparison with either a stated or market value for a debt instrument at some point in time
derivative instrument where the holder has the right but may not have the obligation, depending on the nature of the instrument, to enter into the underlying contract, or pay or receive payment related to the underlying financial rate (or rate contract) on a specified future date based on a specified future rate and term
Examples of rate-based derivatives include interest rate swaps, forward rate agreements (FRAs), and interest rate options such as caps, floors, and collars.
Rate-based derivatives derive their value from movements in some rate, e.g, an interest rate, market rate, economic indicator, statistical measure calculated over some collection of indices, rather than from traditional assets like stocks or commodities. They are commonly used by institutions to manage risks associated with interest rate fluctuations.
preferred share that confers zero votes per share, may be exchanged for securities of another issuer, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic stated income, and is registered
preferred, non-voting, redeemable exchangeable, fixed income, registered share
party that purchases professional services from, or has a formal relationship to purchase services from another party
debt instrument backed by receivables other than those arising out of real estate loans or mortgages
asset-backed security
ABS
ISO 10962, Securities and related financial instruments - Classification of Financial Instruments (CFI code), Fourth edition, 2019-10-01
An asset-backed security (ABS) is a type of financial investment that is collateralized by an underlying pool of assets—usually ones that generate a cash flow from debt, such as loans, leases, credit card balances, or receivables. It takes the form of a bond or note, paying income at a fixed rate for a set amount of time, until maturity. ABS are financial securities backed by income-generating assets such as credit card receivables, home equity loans, student loans, and auto loans. Pooling assets into an ABS is a process called securitization. One difference between an ABS and a collateralized debt obligation (CDO) is that the CDO issuer is generally a special purpose vehicle (SPV) or trust.
Asset-backed securities, for example home equity loans (HEL), credit cards, and so forth are backed by receivables [payments] that are either secured (such as HEL) or unsecured (for example, credit cards). They are typically tranched based on default risk.
preferred share that confers exactly one vote per share, may be exchanged for securities of another issuer, provides a periodic stated income, and is registered
preferred, voting, exchangeable, fixed income, registered share
derivative instrument that obligates the buyer to receive and the seller to deliver the assets specified at an agreed price, at some later point in time
A futures contract obligates the buyer to pay the seller a predetermined price based on the market value of the underlier, unless the contract is sold before settlement date which may happen if a trader waits to take a profit or cut a loss. This contrasts with options trading in which the option buyer may choose whether or not to exercise the option. Futures are distinguished from generic forward contracts in that they contain standardized terms, trade on a formal exchange, are regulated by overseeing agencies, and are guaranteed by clearing houses. Also, in order to insure that payment will occur, futures have a margin requirement that must be settled daily. Finally, by making an offsetting trade, taking delivery of goods, or arranging for an exchange of goods, futures contracts can be closed. Hedgers often trade futures for the purpose of keeping price risk in check.
futures contract
financial product that acts as a container for at least one financial instrument, including other financial products, and whose value is derived from, or based on a reference asset, market measure, or investment strategy
Packaged products are typically included in an institution's approved product catalog, i.e., pre-approved by compliance organizations for sale to clients. Not all institutions maintain such a catalog, with internal identifiers for such products, but many do. Such core products may have as attributes: Type (product and possibly asset class), product identifier, status and approval date, product family approval (as appropriate), and so forth.
Certain properties of the instruments, such as their term, interest rate, eligibility of the client, etc., may be set as a part of the product specification. Some of these are intrinsic but variable properties of the instrument, for example the exact interest rate, whereas others are extrinsic, such as client eligibility. Product offerings have prices, which may build in various fees, that are components of the cost of carry on a trader's books.
SEC Rule 434 defines structured securities as 'securities whose cash flow characteristics depend upon one or more indices or that have embedded forwards or options or securities where an investor's investment return and the issuer's payment obligations are contingent on, or highly sensitive to, changes in the value of underlying assets, indices, interest rates or cash flows'.
Reference assets and market measures may include single equity or debt securities, indexes, commodities, interest rates and/or foreign currencies, as well as baskets of these reference assets or market measures. Like other well-known market instruments such as convertible bonds, many structured products are hybrid securities. Structured products typically have two components - a debt instrument and a derivative, which is often an option. The debt instrument, in some instances, may pay interest at a specified rate and interval. The derivative component establishes payment at maturity, which may give the issuer the right to buy from you, or sell you, the referenced security or securities at a predetermined price. For example, structured products may combine characteristics of debt and equity or of debt and commodities.
bank that is owned or controlled by a US depository institution, Edge Act corporation or trust company
international bank of US depositary, edge, trust company
activity in which some party asks another party for something or to do something
date on which a bond can be converted into the specified equity security
system for allocating addresses to objects
relates a party in the role of employer to the context of employment
quantity by which amounts differ; the remainder left after subtraction of one value from another
event reflecting a potential adjustment to an interest rate, typically corresponding to a change in the underlying benchmark interest rate or index specified in the contract
Note that depending on the contract, a rate reset can occur daily or on some other timetable, and depending on the underlying benchmark, the actual rate may or may not change. Rate resets may be associated with variable interest rate loans, scheduled reset dates for loans and other debt instruments, for example, interest rate swaps, certain kinds of bonds, and the like. The date on which interest is (re)calculated may be an explicit or date relative.
exotic option that minimizes the uncertainties related to the timing of market entry, providing the holder the advantage of knowing history when determining when to exercise their option
lookback option
Lookback options are cash settled options, which means the holder receives a cash settlement at execution based on the most advantageous differential between high and low prices during the purchase period. Sellers of lookback options would price the option at or near the widest expected distance of price differential based on past volatility and demand for the options. The cost to purchase this option would be taken up front. The settlement will equate to the profits they could have made from buying or selling the underlying asset. If the settlement was greater than the initial cost of the option, then the option buyer would have profit at settlement, otherwise loss.
As a type of exotic option, the lookback allows the user to 'look back,' or review, the prices of an underlying asset over the lifespan of the option after it has been purchased. The holder may then exercise the option based on the most beneficial price of the underlying asset. The holder can take advantage of the widest differential between the strike price and the price of the underlying asset. Lookback options do not trade on major exchanges. Instead, they are unlisted and trade over-the-counter (OTC). This type of option reduces uncertainties associated with the timing of market entry and reduces the chances the option will expire worthlessly. Lookback options are expensive to execute, so these advantages come at a cost.
statistical measure of the rate of change in the rate at which one currency can be exchanged for another
Volatility is modeled here using a structured collection, comprised of a series of individual exchange rates (either projected or prior quoted rates), dates, and the source for those rates for some overall period of time
financial institution that spearheads the loan structuring and syndication process on behalf of the borrower
lead arranger
The lead arranger acts as the primary point of contact for the borrower. They perform credit analysis and due diligence, ensure that the structure meets borrowers goals, and coordinates with potential lenders regarding the initial structure and commitments.
arranger
lead bank
lead manager
sequence of characters, capable of uniquely identifying a borrower
A given identifier identifies a particular borrower with respect to at least some number of notes/facilities inside a particular institution according to some policy for minting identifiers. Optimally, there would be a single identifier for a given borrower, but due to operational issues, this is often not the case. A CIF number, or Customer Information File number, is used to link accounts across an institution to all notes/facilities owed by a given borrower.
identifier associated with a vital record documenting the death of an individual
group of people comprising the governing body of an organization that has the authority to set organizational strategy and policies as well as to select and, to some degree manage, leadership
For a public, for profit organization, its members (directors) are elected normally by the subscribers (stockholders) of the firm (generally at an annual general meeting) to govern the firm and look after the subscribers' interests. In the case of a not-for-profit organization, the board ensures the organization is acting in line with its mission. The board has the ultimate decision-making authority and, in general, is empowered to (1) set the company's policy, objectives, and overall direction, (2) adopt bylaws, (3) name members of the advisory, executive, finance, and other committees, (4) hire, monitor, evaluate, and fire the managing director and senior executives, (5) determine and pay the dividend, and (6) issue additional shares. Though all its members might not be engaged in the company's day-to-day operations, the entire board is held liable (under the doctrine of collective responsibility) for the consequences of the firm's policies, actions, and failures to act. Members of the board usually include senior-most executives (called inside directors or executive directors) as well as experts or respected persons chosen from the wider community (called outside directors or non-executive directors).
convertible bond that converts into shares at maturity regardless of the equity price
The conversion ratio at maturity reflects the equity price and par value of the bond when issued. There is also typically a second higher conversion ratio if the equity price rises above the strike during the term of the bond.
credit event triggered when the credit rating of an obligation is downgraded to a distressed debt level
distressed ratings downgrade
agreement between two parties whereby one party lends the other a security at a specified price with a commitment to take the security back at a later date for another specified price
repurchase agreement
REPO
Most repos are overnight transactions, with the sale taking place one day and being reversed the next day. Long-term repos - called term repos - can extend for a month or more. Usually, repos are for a fixed period of time, but open-ended deals are also possible. Reverse repo is a term used to describe the opposite side of a repo transaction. The party who sells and later repurchases a security is said to perform a repo. The other party - who purchases and later resells the security - is said to perform a reverse repo. While a repo functions like the sale and subsequent repurchase of a security, but the legal reality and the economic effect is that of a secured loan. This is a loan as the original owner retains the rights to the cashflows of the underlying security. Economically, the party purchasing the security makes funds available to the seller and holds the security as collateral. If the repurchased security pays a dividend, coupon or partial redemptions during the repo, the funds are returned to the original owner. The difference between the sale and repurchase prices paid for the security represent interest on the loan. Indeed, repos are quoted as interest rates. A repo always pays interest at maturity, i.e. there are no periodic interest payments.
physical location that is defined per some program for designating geographic regions for the purposes of tabulating and presenting statistical data
U.S. Bureau of Labor Statistics and Statistics Canada reference definitions - https://wiki.edmcouncil.org/display/IND/Statistics+Canada+Census+Information
corporate action related to winding up a business, including but not limited to distribution of cash, assets, or both
liquidation
Debt may be paid in order of priority based on preferred claims to assets specified by a security, for example.
corporate action involving a request for holders or beneficial owners to disclose their name, location and holdings of any issue to the issuer
disclosure action
realization of a specific stage in the lifecycle of a given product
corporate bond program where the coupon rate on outstanding bonds is periodically reset through an auction process
A remarketing agent (dealer or underwriter) periodically surveys bond holders to identify those who want to sell bonds. The agent surveys market (or holds an auction) to determine interest rate at which the bonds can be resold. The rate on all outstanding bonds resets at the new rate. These programs are perpetual in the sense they often don't have a fixed maturity date, but the company can redeem them. If an auction fails, i.e., the agent can't place all the bonds then.
an amount over par that a debt instrument holder must pay to sell the security early
share that confers more than one vote per share
enhanced voting share
identifies an official or government chosen to hold office by voting
collection of observations for some key performance indicator measured over a specified window of time
observed indicator value structure
a program conducted on a regular basis that provides information on purchases of various items and services by consumers
basket of debt instruments that provides additional capacity for potential funding and does not require the proceeds to be used for any particular purpose
general debt basket
The general debt basket has increasingly become a basket for additional secured debt. Lenders providing funding to companies need to carefully consider whether any previous debt incurred by the company using this basket has reduced the available capacity.
debt pool consisting of home equity loans
home equity line of credit pool
indicates a form of pre-paid interest, charged by the lender as an alternative to charging a higher rate of interest on the mortgage loan
One point equals one percent of the loan principal, and usually reduces the interest rate by 1/8 percent (0.125)
financial asset in the form of an account
value of an asset today, which may be calculated from reference data and may based on its expected future value
account that represents an identified, named collection of balances and cumulative totals used to summarize customer transaction-related activity over a designated period of time
a legal person that has registered for and is identified by a legal entity identifier
Note that the GLEIF data includes multiple LEIs for some entities due to corporate actions or other situations. The duplicates are typically archived after some period of time, but in order to reflect the reality in the data, the restriction is modeled as someValuesFrom rather than exactly 1 LEI for a given entity.
basket composed of securities, typically of a particular asset class such as equities or bonds
date on which a given payment card expires
value that is an actual data point collected from an experiment, survey, or observation
aim distinguished by broad scope and aspirational character, often qualitative and long-term, in order to achieve a desired state
Many people endeavor to reach goals within a finite time by setting deadlines.
preferred share that confers less than one vote per share, may be exchanged for securities of another issuer, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic stated income, and is registered
preferred, restricted voting, redeemable/exchangeable/extendable, fixed income, registered share
indicates the final date in a notional step schedule
share that has the right to exactly one vote
single voting share
abbreviated name for a financial instrument within a defined structure as specified in ISO 18774
ISO 18774:2015(E), Securities and related financial instruments - Financial Instrument Short Name (FISN)
lifecycle stage indicating the operational and/or legal status of an entity
In some jurisdictions, there may be other possible values for entity status, such as suspended in the State of California, thus the individuals provided herein are not intended to be exhaustive.
credit event that involves a request to a court to be recognized as bankrupt
filing for bankruptcy
The bankruptcy process is initiated via a petition filed by the debtor or on behalf of creditors. The debtor's assets may be used to repay a portion of outstanding debt as specified by the court or a court-appointed individual.
contract party that is obliged to sell a deliverable obligation (asset) if a triggering event occurs, depending on the event and the contract
deliverable obligation seller
structured product that provides a further enhanced yield (over and above that of a yield-enhancement product), often without any limit to the upside participation, and frequently with a stop-loss in order to limit potential capital losses
Leveraged certificates are examples of leveraged products; they provide enhanced participation to an underlying with inbuilt leverage. Leveraged exposure is also provided on the downside performance of the underlying. Another example is a call warrant, which is simply a call option that is traded in a securitized format. This format is interesting in order to be able to trade a call option on underlyings for which no exchange traded option market exists.
leveraged product
option that giving the buyer (holder) the right, but not the obligation, to receive a cash payment if market interest rate of a reference rate is higher or lower, depending on the option, than the strike rate of the option
interest rate option
The amount of the payment will be based on the difference between the market rate on the exercise date and the strike rate, multiplied by the notional principal specified in the option contract, to calculate the total payment.
preferred share that confers exactly one vote per share, whose issuer and/or shareholders have the option to extend the maturity date, that provides the same dividends as common/ordinary shareholders, and is registered
preferred, voting, redeemable extendable, normal income, registered share
indicates the scope, limits, and context for an environmental or sustainability project
event reflecting the calculation of interest
share whose payment status indicates that only a portion of the market value has been received by the company for the shares
partially paid share
security identifier that is defined as specified in ISO 6166, Securities and related financial instruments -- International securities identification numbering system (ISIN)
international securities identification number
ISINs consist of two alphabetic characters, which are the ISO 3166-1 alpha-2 code for the issuing country, nine alpha-numeric characters (the National Securities Identifying Number, or NSIN, which identifies the security, padded as necessary with leading zeros), and one numerical check digit. The ISIN is specified as a class of identifiers because although there is a scheme associated with the structure of an ISIN, there are many country-specific variations issued by national numbering agencies.
indicates the origin of a quoted exchange rate
has exchange rate quotation source
appoints or proposes for appointment to an office or place
Note that nominates is defined as a relation between two parties-in-role (the range of which could be a corporation or partnership in the case of an auditor), whereas appoints between independent parties.
not-for-profit organization that is owned by and acts on behalf of its members
Associations include trade or business associations, industry sector-specific groups, and professional associations, among others. They also commonly include cooperative farms and markets.
independently administered synthetic auction process on a set of defined deliverable obligations that sets the reference final price that can be used to facilitate cash settlement of all covered transactions following a credit event
settlement auction
financial institution that acts as a fiduciary, trustee or agent of trusts and agencies
A professional trust company may be independently owned or owned by, for example, a bank or a law firm, and which specializes in being a trustee of various kinds of trusts. The trust company oversees the management of assets covered by the trust agreement. Such companies often are used when a grantor feels the trust company can do an equal or better job managing the assets than an individual person, or if the grantor does not know of anyone else who can act as trustee. Trust companies sometimes act as fiscal agents for corporations by attending to the registration and transfer of their stocks and bonds, serving as a trustee for their bond and mortgage creditors, and transacting general banking and loan business.
contractual right of a party to the master agreement to terminate the agreement early
master agreement early termination right
This generally arises from some default event on the part of the other party.
investor that pools money to purchase securities, real property, and other investment assets or originates loans
Institutional investors typically buy, sell, and manage stocks, bonds, and other investment securities on behalf of its clients, customers, members, or shareholders. These include endowment funds, commercial banks, mutual funds, hedge funds, pension funds, and insurance companies. Institutional investors are able to invest in riskier securities and ventures than average investors because they are more sophisticated with respect to their investment methodologies.
preferred share that confers zero votes per share, may be exchanged for securities of another issuer, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic stated income, dividends not paid in any year accumulate, and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, non-voting, redeemable/exchangeable/extendable, cumulative participating, registered share
preferred share that confers zero votes per share, has no fixed maturity date, provides a periodic income whose dividend rate is adjusted through an auction, and is registered
preferred, non-voting, perpetual, auction rate income, registered share
certificate that makes profits possible with rising and falling underlying asset values, in which a falling underlying asset price converts into profit up to the barrier, and whose minimum redemption is equal to the nominal value provided the barrier has not been breached
If the barrier is breached the product changes into a tracker certificate. With higher risk levels, multiple underlying asset(s) (worst-of) allow for a higher bonus level or lower barrier. Twin-win certificates have reduced risk compared to a direct investment into the underlying asset(s).
twin-win certificate
Twin-win certificates are suited to investors who are convinced that the underlying instrument has a good chance of going up. If it in fact does, the built-in leverage of the product enables you to participate not just 1:1 in that upside move (as would be the case with a normal tracker certificate), but instead at a disproportionate rate and with no price limitation.
With a twin-win certificate, you can actually have it both ways. In other words, this type of structured product generates a profit for you not only when the price of the underlying instrument goes up, but also if it declines to a certain extent. And this with a specially built-in safety mechanism. The unique structure of these products makes it possible to turn a modest loss in the underlying instrument into a modest gain.
indicates the date on which, or after which, conversion may occur
policy specifying principles, rules and/or guidelines regarding some aspect of reporting
For example a policy for how frequently a given kind of report is produced.
debt instrument issued by HM Treasury and listed on the London Stock Exchange
The term 'gilt' or 'gilt-edged security' is a reference to the primary characteristic of gilts as an investment: their security. This is a reflection of the fact that the British Government has never failed to make interest or principal payments on gilts as they fall due.
If a private investor wishes to purchase gilts the secondary market can be accessed through a stockbroker, bank or the DMO's Purchase and Sale Service.
non-bank entity of which 25 percent or more of whose voting shares are owned or controlled by an entity that is based in the United States, or of which a majority of its directors are controlled by such domestic entity, or of which 25 percent or more of whose voting shares are held by trustees for the benefit of the shareholders or members of such domestic entity
non-bank subsidiary of a domestic entity
banking institution organized to accept savings deposits and pay interest on those savings deposits
Savings banks can have state and federal affiliations, for example, State Savings Banks and Federal Savings Banks
system that reduces or eliminates the need for human involvement in order to complete a task
futures contract whose underlying asset is at least one option contract
future on option
financial service involving the exchange of one currency for another, conversion of one currency for another, and transfer of money from one country to another whereby currency conversion is required
classifier for a street or other delivery location, such as a dwelling located along a waterway
The suffix may provide some insight into the size or length of the street, though not necessarily consistently. In some cities, the suffix differentiates the street from another in the same context, such as 19th Street vs. 19th Avenue in San Francisco.
authority to act in a fiduciary capacity with respect to the organization, including but not limited to determining and executing corporate policy
price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date
ISO/TS 55010:2024(en), Asset management - Guidance on the alignment of financial and non-financial functions in asset management
an economic indicator representing a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services
futures contract whose underlying asset is at least one stock dividend
dividend future
preferred share that confers less than one vote per share, may be redeemed at the option of the issuer and/or of the shareholder with an extendable redemption date, provides a periodic income whose dividend rate is set periodically, and is registered
preferred, restricted voting, extendable, adjustable income, registered share
party that is responsible for determining the value of an instrument and in some cases, determines how much the parties owe one another
calculation agent
A calculation agent is an entity responsible for performing calculations and determinations outlined in financial agreements, often related to derivatives or structured products. They ensure accuracy and timeliness in calculating payments, interest rates, or other terms based on predefined formulas and market conditions. The agent can establish the price for a given instrument and may act as its guarantor and issuer. If the counterparty in a derivative transaction is a broker-dealer, then the broker-dealer will often act as the calculation agent.
indicates the per unit value of a given commodity as of some specified date
preferred share that confers exactly one vote per share, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic stated income and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, voting, redeemable extendable, participating, registered share
credit agreement that may be extended up to an agreed credit limit and paid down at any time within the period of the line, if any, and on which interest is charged only on the outstanding balance
Credit card and overdraft lines of credit are among the most widely used forms of open-end credit.
There is a credit limit most of the time, with exceptions including reverse mortgages with tenure payment. The borrower has the option of paying off the outstanding balance, without penalty, or making installment payments.
standardized contract terms established by a securities or options exchange or by an options clearing entity
standardized options terms
Such terms may relate to the underlying instruments, exercise price, expiration date, and contract size, for example.
product that is made to order, commissioned based on a customer's specifications
top corporate officer responsible for an organization's overall operations and performance
He or she is the leader of the firm, serves as the main link between the board of directors (the board) and the firm's various parts or levels, and is held solely responsible for the firm's success or failure. One of the major duties of a CEO is to maintain and implement corporate policy, as established by the board. Also called President or managing director, he or she may also be the chairman (or chairperson) of the board.
finance company that makes loans to manufacturers and wholesalers, secured by accounts receivable, inventories, and equipment
terms that are invoked if special dividend and memorial dividends are applicable
special dividend leg terms
relates a swap leg to the to the swap that includes it
any office or any place of business of a foreign bank located in any State of the United States at which deposits are received, established and operating under the laws of that State that is not insured or regulated by the Federal Deposit Insurance Corporation (FDIC)
uninsured state branch of foreign banking organization
square root of variance that measures the spread or dispersion around the mean of a data set
The most widely used measure of dispersion of a frequency distribution introduced by K. Pearson (1893). It is equal to the positive square root of the variance. The standard deviation should not be confused with the root mean square deviation.
While standard deviation is the most widely-used measure of spread, using squared deviations, it may not be the most robust.
legislation under which the formation, registration or incorporation, governance, and dissolution of a firm is administered and controlled
specifies a minimum price movement for the security with respect to an exchange
has tick size
correlation swap that allows one to hedge risks associated with the observed average correlation of a collection of underlying equity products
equity correlation swap
The underlier for the leg can be any of (1) dividend stream for a single stock, (2) change in value for a single share, (3) change in value for a basket of shares, (4) change in value for an index, (5) value of a dividend stream for a basket of shares, or (6) comparison of the change in value of a given share or basket or index against something else - for example, a single share against an index, which is the thing you are cross-correlating with the volatility of the share.
ratio of the annualized dividend per share divided by the (current) price per share
share yield
dividend-price ratio
dividend yield
return leg based on the income generated by the underlying asset as well as any appreciation, decrease in value, capital gains, and fees on any increase in value
total return leg
This is distinguished from the more general Return Leg by the addition of increase or decrease in the value of the underlying asset.
government and the politicians that that run a country as a whole (as opposed to local government)
bond whose income may vary over time, because either the coupon rate or principal amount changes in line with an index or schedule over the life of the security
card verification code specifically for Mastercard payment cards
subset of the underemployed population that includes persons employed in a role that does not reflect their training and experience, excluding those that change careers
underemployed population with respect to occupation
indicates the method used to address any changes to the contract based on events that occur over the contract lifecycle
has method of adjustment
purchase right that gives a prospective acquiree's common, convertible shareholders the right to buy common, convertible shares of the firm or common, convertible shares of anyone who acquires the firm at a deep discount to their fair market value
common convertible share purchase right
contractual terms specific to derivative contracts, including terms related to payments and delivery between parties
European Union wide securities designation, defined by the Basel Committee on Banking Supervision (BCBS), that classifies securities based on the quality of capital underlying the instrument
Basel III is an international regulatory accord designed to improve the regulation, supervision, and risk management of the banking sector. It was developed in response to the global financial crisis of 2007-2008. A consortium of central banks from 28 countries devised Basel III in 2009, mainly to ensure major banks could survive another upheaval. The regulations include minimum capital, leverage, and liquidity requirements.
Per Basel III, Tier 1 capital, or core capital, equity shares and retained earnings, is preferred. Tier 2 capital, or supplementary capital, is also usable. Possible values include Tier 1, Additional Tier 1, Tier 2, Not Subject to Regulations, and Not Provided.
identifier for a physical location that is defined per a nationally consistent program for designating geographic regions for the purposes of tabulating and presenting statistical data
group of exchanges and trading venues referenced for pricing purposes
composite market
bond that is only secured by the bond issuer's good credit standing
Most unsecured bonds pose limited risk of default, as the organizations that issue them are typically financially sound.
preferred share that confers zero votes per share, may be exchanged for securities of another issuer, whose issuer and/or shareholders have the option to extend the maturity date, that provides the same dividends as common/ordinary shareholders, and is registered
preferred, non-voting, redeemable/exchangeable/extendable, normal income, registered share
common share that confers exactly 0 votes per share, is restricted from a sales / transfer perspective, is nil paid and is registered
common, non-voting, restricted, nil paid, registered share
common share that confers exactly 0 votes per share, is unrestricted from a sales perspective, is nil paid and is registered
common, non-voting, unrestricted, nil paid, registered share
preferred share that confers exactly one vote per share, has no fixed maturity date, provides the same dividends as common/ordinary shareholders, and is registered
preferred, voting, perpetual, normal income, registered share
one or more adjacent counties or county equivalents that have at least one urban core area of at least 50,000 population, plus adjacent territory that has a high degree of social and economic integration with the core as measured by commuting ties
preferred share that confers exactly one vote per share, may be exchanged for securities of another issuer, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic income whose dividend rate is adjusted through an auction, and is registered
preferred, voting, redeemable/exchangeable/extendable, auction rate income, registered share
broker that solicits or accepts orders for derivatives that are traded on or subject to the rules of an exchange
Introducing brokers do not accept money, securities, or property (or extend credit in lieu thereof) to margin, guarantee, or secure any trades or contracts that result or may result.
indicates a means by which something (in the case of a network address) or some entity may be located or contacted or may receive correspondence
cash-settled derivative where the parties agree to exchange on the maturity of the contract the difference between the current value of the underlying asset and the initial value of that asset when the contract is initiated
For example, suppose the initial price of share XYZ is $100 and a CFD for 1000 shares is exchanged. Both the buyer and seller must post some margin. If the price goes to $105, then the buyer gets $5,000 from the seller. If the price goes to $95, the buyer pays the seller $5,000. This contract avoids ownership of the stock and all the associated transactions issues (like stamp taxes). The contract also allows for leverage (typically 10:1) because the margin that must be posted is only a fraction of the value of the underlying asset.
contract for difference
CFD
These contracts can also be on the difference of two assets' prices. They can also be on the difference of a single asset of different maturities (like a bond or futures contracts).
spread trading
return leg whose income is based on equities
equity return leg
rule expressed in letters and symbols that consists of at least one expression
economic indicator representing ratio of a volume measure of output to a volume measure of input use
The primary objectives of productivity measurement include: (a) tracing technology change, i.e., the currently known ways of converting resources into outputs desired by the economy, (b) identifying changes in efficiency, (c) understanding real cost savings, (d) benchmarking production processes, and (e) assessing standards of living. Productivity measures may also be single factor or multifactor.
underwriter who, as principal, purchases from an investment company, or pursuant to some contract has the right to purchase from such company, any security for distribution, or who as agent for such company sells or has the right to sell any security to a dealer or to the public, excluding any dealer who purchases from such company through sn underwriter acting as an agent for such company
Principal underwriter of or for a closed-end company or any issuer which is not an investment company, or of any security issued by such a company or issuer, means any underwriter who, in connection with a primary distribution of securities, (a) is in privity of contract with the issuer or an affiliated person of the issuer; (b) acting alone or in concert with one or more other persons, initiates or directs the formation of an underwriting syndicate; or (c) is allowed a rate of gross commission, spread, or other profit greater than the rate allowed another underwriter participating in the distribution.
common share that confers multiple votes per share, is not restricted from a sales / transfer perspective, is nil paid and is registered
common, enhanced voting, unrestricted, nil paid, registered share
extraction resource that is natural gas
gas commodity
product-specific master agreement intended to reflect best market practice and to provide a standard agreement for participants in the foreign exchange markets
foreign exchange master agreement
The International Foreign Exchange Master Agreement (IFEMA) was published jointly by the British Bankers' Association and The Foreign Exchange Committee of the Federal Reserve Bank of New York in 1993 (an amended version was published in 1995). Foreign exchange settlement netting provisions are specified in such master agreements.
The Foreign Exchange Committee of the Federal Reserve Bank of New York has approved and authorized publication of the Foreign Exchange and Options Master Agreement to cover foreign exchange spot and forward transactions as well as currency options.
debt pool of consisting of bonds
bond pool
calculated date associated with a floating-rate note, also known as a floater or FRN, which is a debt instrument with a variable interest rate
trading system that facilitates the exchange of financial instruments between multiple parties
Multilateral trading facilities allow eligible contract participants to gather and transfer a variety of securities, especially instruments that may not have an official market. These facilities are often electronic systems controlled by approved market operators or larger investment banks. Traders will usually submit orders electronically, where a matching software engine is used to pair buyers with sellers.
trust in which legal ownership of the trust property is transferred to the trustee, but the trustor retains full power to revoke, modify or amend the trust
asset pledged as collateral that has a material form, i.e., is a physical asset of the obligor
Examples of physical collateral include, but are not limited to, real estate, equipment, vehicles, spare parts, inventory, goods, supplies, fixtures, and leasehold improvements.
product provided to consumers and businesses by financial institutions such as banks, insurance companies, brokerage firms, consumer finance companies, and investment companies
indicates whether a calendar-specified date is figured from the beginning or end of a calendar period
indicates the recurring window of time in which the put feature can be exercised
preferred share that confers exactly one vote per share, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic stated income, and is registered
preferred, voting, redeemable, fixed income, registered share
person that is a member of the active duty military
preferred share that confers less than one vote per share, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic stated income and dividends not paid in any year accumulate, and is registered
preferred, restricted voting, redeemable, cumulative, registered share
links a party in the role of broker, dealer, vendor, or merchandiser to something that they make available for sale
preferred share that confers multiple votes per share, may be exchanged for securities of another issuer, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic stated income, dividends not paid in any year accumulate, and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, enhanced voting, redeemable exchangeable, cumulative participating, registered share
indicates a party that owns a controlling stake (over 50 percent) in the entity
indicates owners' equity associated with the entity
debt pool consisting of student loans
student loan pool
identifies a transliterated (i.e., in Latin or Romanized ASCII) address for the registered entity
person appointed and given the responsibility to manage the affairs of an organization and the authority to make decisions within specified role-specific boundaries
monetary price expressed in relation to a well-known measurable unit by which the goods or services are allocated
For example, gold is commonly measured in troy ounces, grams, etc., and oil is measured in terms of barrels.
name for a building, house, office complex, shopping center, or other structure or group of structures
Examples include 'McCoy Center', which is the name of the office complex where JPMorgan Chase's Polaris facility is located, 'Apple Park', which is the name of the corporate headquarters of Apple, Inc., and 'Howells Bridge Cottage', which is the name of a very old cottage in Cornwall.
preferred share that confers less than one vote per share, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic income whose dividend rate is adjusted through an auction, and is registered
preferred, restricted voting, redeemable extendable, auction rate income, registered share
a party to whom an obligation, such as an amount of money, or good, or performance of some service exists
underlier of a commodity derivative, including, but not limited to, the negotiable commodity itself
The underlying of a commodity swap may include a physical commodity, or the price, or behavior of the price, or any other aspect of a physical commodity.
measure of change in the value of the contents of a basket over a given period of time
reference index
An index is a function based on a set of structured calculations with respect to a basket of credit risks, financial instruments or other indices over time. Analysis may be computed based on historical values, projected values, etc.
benchmark
preferred, voting, redeemable exchangeable, auction rate income, registered share
derivative instrument that grants to the holder either the privilege to purchase or the privilege to sell the assets specified at a predetermined price or formula at or within a time period in the future
cash value of the last transacted price before the market closes
closing price
five-digit code code assigned to a delivery address indicating the state and post office or postal zone
generated resource that is a viscous liquid derived from petroleum, including for use as fuel, or as a lubricant, and the manufacture of many types of paints, plastics, and other materials
oil commodity
legally enforceable duty to pay a sum of money according to the terms stated in a contract
the duty of a borrower to repay a loan, related to the legal right of a lender to enforce payment
realization of a phase in the lifecycle of a specific trade
non-depository trust company that is a member of the Federal Reserve system
non-depository trust company - member institution
party that provides compensation, including wages or a salary and potentially other benefits, in exchange for work performed by one or more people, and that has the right to control and direct the employee in the material details of how the work is to be performed
investment fund that pursues a total return and is usually open to qualified investors only
hedge fund
contractual provision that outlines the requirements and responsibilities of one or both parties to reveal certain information to each other
disclosure provision
Disclosure provisions are crucial in ensuring transparency, mitigating risks, and maintaining trust between the parties. Typical elements of a disclosure provision include (1) scope - defining the kind of information that must be disclosed, (2) materiality - which usually states that only information material to the agreement must be disclosed, (3) timing - specifying when such disclosures must be made, (4) ongoing requirements - outlining whether or not disclosures any time significant changes or new information must be made available over some period of time, (5) method - specifying how such disclosures must be made, for example, in writing, (6) exclusions - information that is explicitly out of scope with respect to disclosure requirements, (7) confidentiality - restrictions related to whether or not the information is confidential and on how it may be used, and (8) penalities - specifying consequences for failing to disclose relevant information.
With respect to contracts, failure to disclose key details can lead to breaches of contract or claims of misrepresentation. Disclosure requirements are typically specific to the nature of the contract and jurisdiction.
specifies an individual unit within a larger structure, such as an apartment, office, hangar, slip, mailbox, and so forth, at a given street address
party that holds influence-based control over some other party
Regulatory or jurisdictional control would fall under this control. Court appointed control is de jure control BUT the scenario in which a government takes over something and then hands it over to some new de jure controller i.e. administrator - in the meantime this is de facto control by e.g. the government.
influence-based de facto controlling party
foreign exchange agreement between two parties to exchange a given amount of one currency for another currency for spot delivery or for forward delivery at an agreed rate after a specified period of time
In the case of a 'forward-forward' swap, both legs will be of type CurrencyFoward.
currency swap
depository institution that is (a) any federal savings bank or association chartered under section 1464 of the Federal Deposit Insurance Act; (b) any state chartered building and loan association, savings and loan association, or homestead association; or (c) any cooperative bank (other than a cooperative bank which is a state bank as defined in subsection (a)(2)) of the Federal Deposit Insurance Act, which is organized and operating according to the laws of the State (as defined in subsection (a)(3)) in which it is chartered or organized; and (c) any corporation (other than a bank) that the board of directors and the comptroller of the currency jointly determine to be operating in substantially the same manner as such a depository institution
component of a basket whose relative importance with respect to other basket constituents is known
specifies a concise way of expressing information symbolically, as in a mathematical or chemical formula
financial institution (typically a commercial or investment bank) designated to help structure, arrange, and manage the loan syndication process
syndication agent
Syndication agents are important at the beginning of the process, including setting up the syndicate, supporting distribution of the loan across lenders, marketing, and the like. They are far less involved in loan administration, which is managed by the administrative agent.
role or associated with a party serving as a designated point of communication, typically within a system or process
formula for the calculation of variable interest
links a party in the role of purchaser to something that they have purchased or plan to purchase
enumeration that indicates whether a calendar-specified date is figured from the start or the end of a calendar period
interest rate swap that exchanges cashflows based on two different floating interest rates in the same currency
float float single currency interest rate swap
float-float single-currency interest rate swap
warrant that is listed on a securities exchange
exchange-traded warrant
identifies a holding period applicable to some financial asset
coupon payment terms for securities with a coupon that increases (steps up) while the bond is outstanding
asset pledged as collateral that is a financial asset, rather than physical asset
Examples of non-physical collateral include, but are not limited to, bank deposits, accounts receivable, stocks, bonds, other securities, and the like.
links the process of reduction of debt or other costs through periodic charges to the relevant asset or liability
indicates a party that has entered into a binding agreement, accepting and conceding obligations, responsibilities, and benefits as specified
indicates a relative price with respect to the face value at the time an instrument is redeemed, namely par, discount or premium
financial institution that is a member of the Federal Reserve System (FRS)
physical location, including country, region, and municipality where an individual was born
demand or assertion made by one party on another, based on facts that, taken together, give rise to a legally enforceable right or judicial action
claim
Claims arise from the existence of a formal commitment between the parties or as implicitly agreed upon through the operation of law or constitution.
identifies an individual or organization that has some ability and availability to carry out certain actions, or has certain rights or obligations
indicates a managing member in a controlling role of a limited liability company that has responsibility for the day-to-day business operations
common share that confers exactly 0 votes per share, is restricted from a sales / transfer perspective, is fully paid and is registered
common, non-voting, restricted, fully-paid, registered share
a schedule that defines the events associated with the put feature of a debt instrument, i.e, the dates on which the debt instrument may be sold at what price by the holder
derivative instrument that is not listed on an organized exchange
ISO 4914 defines an OTC derivative instrument as a financial instrument that is, or would be, identified by an ISIN with the prefix 'EZ' or 'ZZ'. Details regarding how the prefix of an ISIN is determined can be found in ISO 6166:2020, Annex A.
proprietary code for financial instruments and indices owned, managed, and distributed by the London Stock Exchange Group's LSEG Financial Solutions (branded as Refinitiv)
A Refinitiv Instrument Code (RIC), previously known as the Reuters Instrument Code, is a proprietary identifier used by Refinitiv (now LSEG Financial Solutions) to represent financial instrument related data. The composition of a RIC is dependent on the type of instrument. - Instrument code : Can be based on the exchange ticker code, ISIN or local code, currency code, and so on - Period or time interval : Can be an expiry month code for example - Delimiter : Usually a full stop used to separate the instrument code from the exchange code or a = sign for money securities. - Source code : Usually a single or double alpha-character capital unique to an exchange An equity RIC has several components: the Equity RIC root is in upper case, brokerage characters in lower case (if applicable), and finally an exchange identifier. These codes facilitate information lookup across various financial networks. The concept of RICs traces back to the Quotron service, which Thomson Reuters acquired in the 1980s. The division was spun out as Refinitiv in 2018. Refinitiv was acquired by the London Stock Exchange Group in 2021, and the organization was rebranded as LSEG Financial Solutions in 2023, though the name of the code and certain other branded concepts were retained.
preferred share that confers less than one vote per share, may be exchanged for securities of another issuer, provides a periodic stated income and dividends not paid in any year accumulate, and is registered
preferred, restricted voting, exchangeable, cumulative, registered share
ownership by some party of an interest in some non-governmental formal organization
indicates the registration authority for a given security, i.e., in the name of the owner on the books of the issuer, with the issuer's registrar, with a third-party transfer agent, with a broker-dealer, or other competent party
common share that confers multiple votes per share, is restricted from a sales / transfer perspective, is fully paid and is registered
common, enhanced voting, restricted, fully-paid, registered share
regular or explicit (ad hoc) payment schedule associated with a given loan-specific account
Loan payment schedules may or may not be amortization schedules, i.e., they may or may not include principal.
date that determines in which posting period a document or journal entry is added to an account record
an entry in the ABA RTN registry, a repository of financial institution characteristics collected by the ABA Registrar on behalf of the ABA
statistical universe consisting of enterprises designed for the purposes of supporting surveys such as those used as the basis for employment and producer price indices
9-character alphanumeric identifier that employs the same 9 characters as CUSIP, but also contains a letter of the alphabet in the first position signifying the issuer's country or geographic region, issued by CUSIP Global Services
CUSIP International Numbering System (CINS) number
economic indicator representing measure of the change over time in the prices of consumer goods and services that households consume
a debt instrument that may not be bought or sold
Low-risk instruments such as savings bonds are examples of nonnegotiable debt instruments.
Generally, a nonnegotiable instrument may be redeemed by the issuer, but this is often subject to some limitations.
an expression used to determine a variable interest payment amount
netting provision that may be triggered when a counterparty defaults, leading to the termination of all outstanding transactions between the parties
close-out netting provision
In the case of close-out netting, the financial positions of the defaulting party are assessed to determine their worth, and total amounts owed are offset, resulting in a single net payment obligation.
relates an account to the net amount of money available in that account
identifies the business registration authority for the legal entity, used by the Local Operating Unit (LOU) as the basis for validation, as defined in the GLEIF Registration Authorities List
grant of permission needed to do something
Note that in some cases, a license may also be considered an agreement or contract, depending on the specifics of the license and jurisdiction.
fiduciary relationship and legal entity in which one party, known as a trustor, gives another party, the trustee, the right to hold title to and manage assets for the benefit of a third party, the beneficiary
tangible asset that has a material form, such as property, equipment, and inventory
Physical (tangible) assets are real items of value that are used to generate revenue for a company.
dispersion swap in which the parties agree to exchange payments based on the difference between (i) the realized variance of the price changes of a specified equity underlier over a stated observation period and (ii) a fixed amount of variance that is agreed when the contract is executed
equity variance swap
An equity variance swap is a forward swap that uses the variance (being the volatility squared) of an underlying's price movement over a period as the basis for the payoff calculation.
party presenting something, such as a regulatory report
party that owns units in or a percentage of and has rights and responsibilities with respect to some fund, provided in exchange for investment
Note that in some cases the concept of 'fund holder' may be synonymous with shareholder, but not all.
exotic option that is a series of at-the-money (ATM) options, either puts or calls, where each successive option becomes active when the previous one expires
cliquet option
A cliquet is a series of forward start options, all related to each other. Each forward start option represents the advance purchase of a put, or call, option with an at-the-money (ATM) strike price to be determined at a later date, typically when the option becomes active. A forward start option becomes active at a specified date in the future. The premium is paid in advance, while the time to expiration and the underlying security are established at the time the forward start option is purchased. If at the first settlement date the underlying security trades below the strike price of the option (for a call), then it expires worthless and resets to the price of the underlying security at the time of settlement. If at the end of the next settlement the underlying security trades above the new strike, the holder may elect to receive the difference between the market price of the underlying security and the strike price. Alternatively, the holder can let it ride to receive the sum of all payouts at maturity. The main advantage of initiating a cliquet is, if an investor expects volatility to rise, they can lock in their profits at predetermined levels and thus maximize their overall portfolio return.
A cliquet is a cash-settled, exotic option that settles at predetermined dates and then resets its strike price based on the price of the underlying security at the time of settlement. Each new option within the cliquet enters into force when the previous option expires. The total premium and the exact reset dates are known at the time of transacting a cliquet. Investors can opt to receive their payout when each option expires or wait until the entire series plays out.
rachet option
common share that is convertible into another security
preferred share that confers zero votes per share, may be exchanged for securities of another issuer, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic stated income, dividends not paid in any year accumulate, and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, non-voting, redeemable exchangeable, cumulative participating, registered share
relates something (e.g. an occurrence) to something that is the result of some activity or process
identifier that uniquely identifies the financial institution and, when appropriate, the branch of that financial institution servicing an account
specifies a quantity value for a given indicator
reference rate that is an interest rate at which a depository institution lends funds to another depository institution (short-term), or the interest rate the central bank charges a financial institution to borrow money overnight
The overnight rate is the lowest available interest rate, and as such, it is only available to the most creditworthy institutions. It is the underlying rate for Overnight Interest Rate Swaps (IOS).
financial institution that is the monetary authority and major regulatory bank for a country (or group of countries)
Its functions include issuing and managing the country's currency, controlling monetary policy and supervising money market operations, managing exchange and gold reserves, acting as lender of last resort to commercial banks, and providing banking services to the government. Central banks are state-controlled but are increasingly being given an independent status to insulate them from partisan politics.
rule for setting auction dates for US Treasury bills
To finance the public debt, the U.S. Treasury sells bills, notes, bonds, Floating Rate Notes (FRNs), and Treasury Inflation-Protected Securities (TIPS) to institutional and individual investors through public auctions. Treasury auctions occur regularly and have a set schedule. Rules and other information are available via announcements of pending auctions.
option giving the buyer (holder) the right, but not the obligation, to sell the assets specified at a fixed price or formula, on or before a specified date
put option
The seller of the put option assumes the obligation of buying the assets specified should the buyer exercise the option.
expression used to calculate the premium based either on the price per option or percentage of the notional amount
option premium formula
legal person that is a supranational entity, crown, state, or subordinate civil authority, such as a province, prefecture, county, municipality, city, or district representing the people of that entity
indicates a variable dividend rate, typically specified in the prospectus as a formula based on a benchmark or set at auction
exotic option that is a European-style call option with an exercise price of one cent that mimics a futures contract
low exercise price option
LEPO
LEPOs function as deep-in-the-money options similar to the stock itself. Both buyer and seller of a LEPO operate on margin. LEPO options are not available on any U.S. exchanges. Since the strike price is so close to zero, the investor purchasing the LEPO gains most of the features of owning the share directly with the major exceptions of dividends and voting rights. They are only available with European style expirations.
retractable preferred share with a fixed maturity date whose issuer and/or holders have the option to extend the maturity date
retractable preferred share with extendable maturity date
firm in the business of buying and selling securities, operating as both a broker and a dealer, depending on the transaction
The term broker-dealer is used in U.S. securities regulation parlance to describe stock brokerages, because most of them act as both agents and principals. A brokerage acts as a broker (or agent) when it executes orders on behalf of clients, whereas it acts as a dealer (or principal) when it trades for its own account.
indicates a subject matter, observation(s), assessment(s), focus or other topic of a report
preferred share that gives the owner (shareholder) the right to redeem the stock under specified conditions
When retractable preferred shares reach maturity, the shareholder has the right to sell them back to the stock issuer at the price stated on the agreement. In some cases, the issuer can force the shareholder to sell, and may have the option of exchanging retractable preferred shares for common shares instead of cash.
data reporting services provider that is authorized to provide the service of publishing certain trade reports on behalf of banks, investment firms, or asset management companies
authorized publication arrangement
authorised publication arrangement
material resource used in commerce that is interchangeable with other commodities of the same type
Commodities are most often used as inputs in the production of other goods or services. The quality of a given commodity may differ slightly, but it is essentially uniform across producers.
program that presents a detailed investigation and analysis of a subject or situation involving one or more studies or surveys
financial objective that integrates economic performance, environmental stewardship, and social responsibility as co-equal criteria for success
indicates the quote currency in an exchange rate; R units of this currency represent one unit of the base currency
contract terms specific to valuation of the underlying asset(s)
portion of a credit facility extended to the borrower for some purpose, possibly per some schedule specified in the facility
sub-facility
Each sub-facility may have separate terms, and may be or include individual promissory notes, depending on the facility. The amount of associated with the individual sub-facilities sums to the total credit facility amount. Sub-facilities may, individually, have a stated purpose, such as to cover inventory, equipment, accounts receivable, working capital, letters of credit, and so forth.
account associated with a service in which the account holder receives funds from the account provider under certain terms and conditions for repayment
Note that this may be an internal account held on behalf of an institution or a customer account, such as a line of credit account associated with an internal line of business.
bond whereby amortization is via a known and published schedule
realization of the lifecycle for a specific trade
preferred share that confers less than one vote per share, may be exchanged for securities of another issuer, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic stated income, dividends not paid in any year accumulate, and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, restricted voting, redeemable exchangeable, cumulative participating, registered share
credit default swap that references a synthetic collateralized debt obligation (CDO) based on a credit index where each tranche references a different segment of the loss distribution of the underlying index
index tranche credit default swap
Each tranche has a different priority of claims on the principal and interest flows from the collateral pool, and is traditionally portioned into rising levels of seniority.
bond based on the return on an equity over time, i.e. the price and dividend payments or the total return (similar to total return swaps)
subset of the employed population that includes persons that are temporarily absent from work for various reasons
employed population temporarily not at work
This includes persons temporarily not at work because of illness or injury, holiday or vacation, strike or lockout, educational or training leave, maternity or parental leave, reduction in economic activity, temporary disorganisation or suspension of work due to such reasons as bad weather, mechanical or electrical breakdown, or shortage of raw materials or fuels, or other temporary absence with or without leave should be considered as in paid employment provided they had a formal job attachment.
principal that is defined in relation to some variable and so varies over time, as principal
Not the same as principal paydown. This is when the principal itself varies over time, usually as a result of being defined in relation to some index such as an inflation index. Forms the debt principal in instruments such as inflation bonds.
negotiable commodity that is a paper product, including containerboard, newsprint, pulp, recovered paper
paper resource
share in a form of partnership similar to a general partnership, except that in addition to one or more general partners (GPs), there are one or more limited partners (LPs)
limited partnership unit
Like shareholders in a corporation, the LPs have limited liability, i.e., they are only liable on debts incurred by the firm to the extent of their registered investment and they have no management authority. The GPs pay the LPs the equivalent of a dividend on their investment, the nature and extent of which is usually defined in the partnership agreement.
contract provision enabling the issuer (writer) to regain possession through repayment of some stipulated price
In general, redemption is synonymous with 'buy back' or 'cash in', depending on the kind of instrument. Redemption provisions are commonly applicable to the process of annulling a defeasible title, such as for a mortgage or tax sale, by paying the debt or fulfilling an obligation.
multi-lateral system which is not an RM or an MTF and in which multiple third-party buying and selling interests in bonds, structured finance products, emission allowances or derivatives are able to interact in the system in a way that results in a contract in accordance with the provisions of Title II of MiFID II
organised trading facility
organized trading facility
Unlike RMs and MTFs, operators of OTFs will have discretion as to how to execute orders, subject to pre-transparency and best execution obligations.
OTFs were introduced by the European Commission as part of MiFID II and are focused on non-equities such as derivatives and cash bond markets. OTFs are intended to be similar in scope to a swap execution facility (SEF), a type of entity created by the Dodd-Frank Act in the U.S. The goal of SEFs and OTFs is to bring transparency and structure to OTC derivatives trading.
preferred, restricted voting, redeemable exchangeable, adjustable income, registered share
relates a mortgage to the date on which the contract is consummated, officially creating the obligations therein
commitment made by some party without direct involvement from the potential beneficiaries of that commitment
A commitment at large forms the basis for negotiable securities including transferable contracts and potentially other kinds of agreements such as software licenses.
calculated date that is defined by a rule that is captured as a string by the 'hasDateSpecification' property
indicates a controlling party that has some amount of authority or influence over it
indicates a calculated price as of some relative date considered the market value of the option at that point in time
has calculated market value
has premium
party that shares capital, technology, human resources, risks, and benefits of an entity under shared control
preferred share that confers zero votes per share, may be exchanged for securities of another issuer, provides a periodic stated income, dividends not paid in any year accumulate, and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, non-voting, exchangeable, cumulative participating, registered share
a variable that is added to a specified index rate to determine the fully indexed interest rate charged to a borrower on a credit balance
corporate action involving a situation where interested parties seek restitution for financial loss
class action
The security holder may be offered the opportunity to join a class action proceeding and would need to respond with an instruction.
proposed settlement
identifier used to identify financial instruments owned, managed, and distributed by SIX Financial Information (formerly Telekurs AG and subsequently SIX Telekurs Ltd.)
The Telekurs Id was phased out in favor of the Valoren (Valor Nummer in Swiss German) in 2013.
legal entity whose shareholders are entitled to a percentage of a named company's profits via a private contract
variable interest entity
VIE
Variable interest entity (VIE) is a term used by the Financial Accounting Standards Board (FASB) to refer to a legal entity with certain characteristics such that a public company with a financial interest in the entity is subject to certain financial reporting requirements. Examples include certain Chinese companies, such as Alibaba, that leverage VIEs to gain access to foreign capital that would otherwise not be available due to Chinese government regulations.
shell company
return on the investor's capital investment
yield
A Yield must be based on a price, and must be in reference to some event or duration of time. It has a calculation method, and may have other qualifying terms such as for compounded yield.
Yield reflects income over some period of time which is then annualized, and typically projected into the future, assuming that conditions and rates remain the same, whereas return on investment is retrospective.
pool consisting of debt instruments, such as bonds, loans or mortgages
swap leg that specifies contractual terms associated with a schedule of payments for any swap calculated by reference to a fixed annual rate
Payments may be fixed or variable, which is independent from the function of the leg (payments, return etc.). The schedule may be expressed in one of two ways: as an explicit schedule of dates or as a formula for determining payment dates in advance (taking into account for example roll rules for non working days).
party that asks for something
requester
shareholder whose shares confer the right to vote in corporate elections, including the right to elect directors at annual or special meetings, and to express their views to corporate management and directors on significant issues that may affect the value of those shares
A voting shareholder may exercise control over board composition by (1) attending a shareholder meeting and voting directly, (2) assigning a proxy to vote on their behalf, either as specified in the recommendations made in the proxy card or as indicated in a manner that deviates from those recommendations but is detailed on the proxy card, (3) by rejection of the proxy, either implicitly or explicitly, or (4) through a direct ballot that they create themselves.
preferred share that confers zero votes per share, has no fixed maturity date, provides a periodic stated income, and is registered
preferred, non-voting, perpetual, fixed income, registered share
not-for-profit organization that functions independently of government
Some NGOs avoid formal funding altogether and are run primarily by volunteers. NGOs are highly diverse groups of organizations engaged in a wide range of activities, and take different forms in different parts of the world. Some may have charitable status, while others may be registered for tax exemption based on recognition of social purposes. Others may be fronts for political, religious, or other interests.
NGOs, sometimes called civil societies, are organized on community, national and international levels to serve specific social or political purposes, and are cooperative, rather than commercial, in nature.
relates the redemption provision of a debt instrument to a notification provision (e.g., call or put notification)
the principal balance of all loans secured by the property
preferred share that confers multiple votes per share, may be exchanged for securities of another issuer, provides the same dividends as common/ordinary shareholders, and is registered
preferred, enhanced voting, exchangeable, normal income, registered share
insurance policy that a bond issuer purchases that guarantees the repayment of the principal and all associated interest payments to the bondholders in the event of default
unincorporated business owned by a single person
bankers' bank whose activities are limited by specific requirements of the Federal Reserve
bankers' bank subject to reserve requirements
rate at which the contract may be exercised
has strike rate
financial service provider that acts as an underwriter or agent that serves as intermediary between the issuer of securities and the investing public
Major investment banks include Barclays, BofA Merrill Lynch, Warburgs, Goldman Sachs, Deutsche Bank, JP Morgan, Morgan Stanley, Salomon Brothers, UBS, Credit Suisse, Citibank and Lazard. Some investment banks specialize in particular industry sectors. Many investment banks also have retail operations that serve small, individual customers.
indicates a date on which an organization states that a dividend payment may be anticipated, including the the dividend amount and the ex-dividend and payment dates
Nominal value of a security is its redemption price and will vary from its market value. A preferred stock's nominal (par) value is important in that it is used to calculate its dividend while the nominal value of common stock is an arbitrary value assigned for balance sheet purposes.
The nominal amount of a financial instrument is the face amount used to calculate payments made on that instrument. This amount generally does not change. For securities the nominal value is often referred to as the face or par value. This is the redemption price of the security and is normally stated on the front of that security. With respect to bonds and stocks, it is the stated value of an issued security, as opposed to its market value.
preferred share that confers multiple votes per share, has no fixed maturity date, provides a periodic stated income and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, enhanced voting, perpetual, participating, registered share
price determined by multiplying each trade by its volume, adding the results, then dividing by the volume over a certain period during the trading day (rather than over the course of the entire day)
volume-weighted open price
VWOP
specifies the strategy for settlement from a delivery perspective
has settlement method
collection of goods, services, or other things (e.g., financial contracts) that can be purchased and sold in some marketplace
From a securities perspective, a basket is a collection of products or securities that are designated to mimic the performance of a market. For investors, the market basket is the principal idea behind index funds, which are essentially a broad sample of stocks, bonds or other securities in the market; this provides investors with a benchmark against which to compare their investment returns.
A basket may be associated with a specific market sector, and may be delineated for the purposes of statistical analysis, such as for calculating CPI. According to the US Bureau of Labor Statistics (BLS), with respect to the CPI, a market basket is a package of goods and services that consumers purchase for day-to-day living. The weight of each item is based on the amount of expenditure reported by a sample of households.
value determined via quantitative methods, expressed as a numerical value in appropriate units
party that is recognized as the ultimate parent of a given organization within the country or jurisdiction of incorporation or organization
termination of an agreement for any reason prior to its expiration date
Early termination date refers to the date set within an agreement for the parties to exercise the option to terminate the contract prior to its original expiration, typically subject to predefined terms such as notice periods or specific conditions. Early termination may be automatically triggered by an event of default with respect to any contract obligation, due to corporate action, or for other reasons. An early termination date may be calculated per the terms of the agreement or specified explicitly at the time the termination event occurs.
account associated with a product or service that requires the account holder to provide funds for management by the account provider
The account holder may or may not be entitled to consideration in exchange for providing such funds, for example, interest, depending on the type of account and the terms and conditions associated with it. Also, there may be fees associated with management services provided by the account provider. Note too that this may be an internal account held on behalf of an institution or a customer account.
legal obligation that is applicable to a financial instrument or listing as mandated in a law or by contract
relationship between an event or set of events or factors (the cause) and a second event, phenomenon, situation, or result (the effect), where the second event or outcome is understood as a consequence of the first
contractual element that is a statement of fact
warranty
If a warranty is determined to be false, the receiving party has a claim for breach of contract. If it is a fundamental breach the receiving party may have the right to terminate the contact in addition to a claim for damages. However, unlike a claim for misrepresentation, the contract may not necessarily be voided in its entirety as a consequence.
interest rate swap in which both parties pay a fixed interest rate that they could not otherwise obtain outside of a swap arrangement
For example, each counterparty uses a different native currency, but wants to borrow money in the other counterparty's native currency.
Fixed-fixed swaps generally take the form of either a zero coupon swap or a cross-currency swap.
preferred share that confers zero votes per share, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic income whose dividend rate is adjusted through an auction, and is registered
preferred, non-voting, redeemable extendable, auction rate income, registered share
calculated date that is determined via a trading rule
relates a loan to a period of time in months after which there is no prepayment penalty
A value of zero means no prepayment penalty; this avoids need for a separate boolean property about whether there is a prepayment penalty
contract that exists as a result of some verbal exchange
over-the-counter statistical derivative that allows one to hedge risks associated with the observed average correlation of a collection of underlying products
correlation swap
Each product that can act as the underlier on which the correlation is based has periodically observable prices, such as a commodity, exchange rate, interest rate, or stock index. Correlation trading is a strategy in which the investor receives exposure to the average correlation of an index.
relates an offering to one or things that are the subject of the offer
party that holds investment-based control over some other party
investment-based de facto controlling interest party
negotiable commodity that is an energy-related product, or a derivative of an energy-related product, including electricity, renewable energy, or any power/energy delivered through a utility network of provider; diesel fuel, fuel oil, gas oil, gasoline, heating oil, jet fuel, kerosene, natural gas, oil (Brent, Tapis, Dubai, WTI)
energy resource
Note that the concept of an energy resource overlaps with generated resource and extraction resource but is not identical to either.
warrant that gives the holder the right, but not the obligation, to buy (call warrant) or to sell (put warrant) an underlying asset at a specified price (the strike or exercise price) by a predetermined date, issued without an accompanying security by a third party that holds as many securities as would be required if all the warrants are exercised
covered warrant
Covered warrants are very similar to options in that they can be created to allow holders to benefit from either rising prices or falling prices, by having both put and call warrants. They can also be created on a wide variety of underlying instruments, not just equities and they are fairly standardised and are mostly traded on exchanges. The main difference is that warrants tend to have longer maturity dates, typically measured in years instead of months (as with options), and are easier to access for individuals as they can be bought and sold in the same way as shares in the stock exchange.
In contrast to traditional equity warrants, with covered warrants, no new issuance of common stock occurs if the warrant is exercised. The underlying shares of common stock are usually either owned by the issuer of the covered warrants or the issuer has a mechanism, such as owning equity warrants for the underlying shares, through which they can obtain the shares.
global depositary receipt that represents the purchase, or ownership, of foreign assets which are deposited in a depositary bank in Hong Kong
Hong Kong depositary receipt
HKDR
A Hong Kong Depositary Receipt (HDR) is a negotiable instrument issued by a depositary bank that evidences ownership of securities in a corporation organized outside Hong Kong. HDRs trade on the Hong Kong Stock Exchange (HKEx), thus enabling foreign issuers to tap the Hong Kong market and local investors to efficiently invest in quality international companies.
bond that includes a stipulation allowing the issuer the right to repurchase and retire the bond at the call price after the call protection period
entry in a market identifier code registry that conforms to ISO 10383
an unsecured short-term debt instrument typically issued by a bank, corporation, or foreign government to obtain funds to meet short-term debt obligations, such as accounts receivable, inventories, or payroll, backed only by an issuing bank or company promise to pay the face amount on the maturity date specified on the note
commercial paper
Commercial paper has a very-short to short maturity period (usually, 2 to 30 days, and rarely more than 270 days).
value that has less precision or accuracy than a value determined via quantitative methods and which is usually expressed in codes rather than actual numbers
ISO/IEC 5207:2024(en), Information technology - Data usage - Terminology and use cases
Qualitative values may follow nominal or ordinal scales, and may be expressed as enumerations.
objective that reflects the charitable, educational, religious, humanitarian, public services, or other not for profit goals of an organization
The objective of all business activities is not to earn profits for its owners. All of the money earned by or donated to a not for profit organization is used in pursuing the organization's objectives.
an issued debt in the form of a tradable debt instrument (security)
a business recurrence interval convention that is used to calculate the number of days in an interest payment, which applies to the amount of accrued interest or the present value for debt instruments
Day-count conventions apply to swaps, mortgages and forward rate agreements as well as bonds, each of which has its own day-count convention, which varies depending on the type of instrument, whether the interest rate is fixed or floating, and the country of issuance. Among the most common conventions are 30/360 or 365, actual/360 or 365, and actual/actual. A 30/360 convention assumes 30 days in a month and 360 days in a year. An actual/360 convention assumes the actual number of days in the given month and 360 days in the year. An actual/ actual convention uses the actual number of days in the given interest period and year.
preferred share that confers exactly one per share, may be exchanged for securities of another issuer, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic stated income and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, voting, redeemable exchangeable, participating, registered share
scheme that specifies the elements of the codes for entity legal forms, such as those that are sanctioned in a given jurisdiction as defined in ISO 20725
sequence of characters used to assist in the sorting of mail
postcode
indicates the lifespan of credit agreement or offering, from the date of issuance to the scheduled maturity date
account-specific credit agreement that specifies the terms and conditions under which the payment card is offered to the cardholder by the issuer
depositary receipt that is issued in collaboration with the foreign company enabling them to tap into international capital markets directly
sponsored depositary receipt
Although a sponsored ADR would be listed in the United States, the issuing company still has its revenue and profit denominated in its home currency.
weighted average amount of time until the maturities on mortgages in a mortgage-backed security (MBS)
weighted average maturity
WAM
The measure is calculated by totaling each mortgage value represented by the MBS. The weights of each mortgage is found by dividing the value of each into the total of all. To arrive at the WAM number the weight of each security is multiplied by the time until maturity of each mortgage, and then all the values are added together. For example say an MBS has three mortgages valued at $1,000, $2,000 and $3,000 (a total of $6,000) and mature in one, two and three years respectively. The weights of these are 1/6 (1,000/6,000), 1/3 (2,000/6,000) and 1/2 (3,000/6,000). The WAM is 2 1/3 years (1/6 x 1 year + 1/3 x 2 years + 1/2 x 3 years). Note that this calculation would need to be adjusted if there are multiple pools behind the MBS.
This term is used more broadly to describe maturities in a portfolio of debt securities, including corporate debt and municipal bonds. The higher the WAM, the longer it takes for all of the mortgages or bonds in the portfolio to mature. WAM is used to manage debt portfolios and to assess the performance of debt portfolio managers.
code used to denote a convention for specifying what happens when a date falls on a day that is weekend or holiday in some municipality or business center
system of principles, rules and guidelines, adopted by an organization to guide decision making with respect to particular situations and implemented via procedures or protocols to achieve stated goals
asset-backed security based on a pool of debt instruments that returns principal to investors over the life of the security
Fully amortizing asset-backed securities are designed to closely reflect the full repayment of the underlying loans through scheduled interest and principal payments.
These are typically backed by HELs, auto loans, manufactured-housing contracts and other fully amortizing assets. Prepayment risk is a key consideration with such ABS, although the rate of prepayment may vary considerably by the type of underlying asset.
indicates a date on or after which a stock can be redeemed
basket of securities whose constituents are listed shares
basket of equities
specifies the date on which bonds are awarded to the lead manager or syndicate on negotiated deals, or the date of bidding on competitive deals
default event that where either an expected interest payment is missed altogether or the amount paid is less than the required amount
failure to pay interest
Note that capital protection in this case refers to the nominal amount only, and not to the purchase price. The value of the product may fall below its capital protection value during its lifetime; participation is in the underlying price increase above the strike up to the barrier; possibility of rebate payment once barrier is breached; limited profit potential.
barrier capital protection certificate
regular, contract-specific schedule including the dates on which some percentage or all of the principal is due to be (re)paid
indicates the amount of the principal paid with a redemption payment
relates the guarantor to the contract for which they are providing a guaranty
revenue received during a period of time
income
Income includes cash or cash equivalent(s) received during some period of time in exchange for labor or services, from the sale of goods or property, or as receipts from financial investments.
intention specifying a desired direction, condition, or situation toward which an agent's actions are directed, without requiring precise scope or measurable criteria
Business aims are sometimes considered broad, long-term goals, and in such cases, the term 'aim' is used interchangeably with goal. Here, however we differentiate between qualitative goals and quantitative objectives, both of which are kinds of aims, with the critical differences including measurability and time frame. Goals tend to have a much longer trajectory, provide the basis for determining objectives, and are often aligned with an organization's mission, whereas objectives are short term and measurable.
specifies the subset of the baseline statistical universe or population used for comparison or analysis
a schedule of call prices and when they are in effect
a person under a certain age, usually the age of majority in a given jurisdiction, which legally demarcates childhood from adulthood
The age depends upon jurisdiction and application, but is generally 18.
identifies a date period that includes all the dates of a schedule, including any schedule stubs
grants ownership via contract
entry in a unique product identifier registry
unique product identifier registry entry
The Reference Data Library (RDL) is a set of reference data elements, together with their values, which is properly organized and maintained by the UPI service provider. The library associates UPI codes with the values of the reference data elements characterizing the product. Each entry in the library (the registry entry) contains a minimum number of elements as defined in the ISO standard, and may be extended by the service provider.
preferred share that confers zero votes per share, may be redeemed at the option of the issuer and/or of the shareholder with an extendable redemption date, provides a periodic stated income, dividends not paid in any year accumulate, and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, non-voting, extendable, cumulative participating, registered share
financial instrument used for the purposes of currency trading
Example currencies include UK pounds, US dollars, Euro. An example currency instrument is spot currency instrument.
Each instance of a currency instrument has a one to one relationship with its associated currency.
time deposit account that allows deposits (other than time certificates of deposit) for which there is in force a written contract with the depositor that neither the whole nor any part of such deposit may be withdrawn prior to (1) the date of maturity, which shall be not less than seven days after the date of the deposit, or (2) the expiration of a specified period of written notice of not less than seven days
subset of the civilian labor force that is considered to have had no employment but was available for work, except for temporary illness, and had made specific efforts to find employment sometime during a specified period, during the reporting period
Persons who were waiting to be recalled to a job from which they had been laid off need not have been looking for work to be classified as unemployed.
non-depository institution such as one that deals in swaps, makes a market in swaps, regularly enters into swaps with counterparties as an ordinary course of business for its own account, and engages in any activity causing the person to be commonly known in the trade as a dealer/market maker in swaps
participation certificate that enables the investor to acquire the underlying asset at a lower price in return for a limited payout, and for which the underlying asset(s) and/or a cash amount is redeemed should the underlying asset close below the strike on expiry, for which, in return, the potential profit is capped
Discount certificates correspond to a buy-write-strategy; they have reduced risk compared to a direct investment in the underlying asset; with higher risk levels multiple underlying assets (worst-of) allow for higher discounts; limited profit opportunity (Cap).
discount certificate
At the end of the certificate's maturity, a cash disbursement occurs. If the price of the underlying when the maturity is up is higher than the maximal payout or identical to it, the issuer pays the maximum amount. If the price of the underlying is less than the cap, the issuer pays either the current price of the certificate in cash or he gives the investor the underlying, for example a share, at its current price. The issuer can choose. The cash payout is obligatory in the case of discount certificates on indices, currencies or interest.
Discount certificates are ideal for conservative investors that want to guard against market fluctuations and who expect in the medium term sideways-moving prices. Because the buyer of a discount certificate does not profit from price gains that are higher than the cap, this form of investment is best suited for a medium-term oriented engagement. If the certificate reaches its cap before the maturity, the investor should take the profits.
The maximum profit that an investor can reach with a discount certificate is calculated by taking the difference between the purchase price and the cap on the underlying. Losses, in contrast, are lessened by the discount. The investor suffers a loss only when the price of the underlying at the end of the maturity has fallen so far that the discount is depleted. The discount thus works as a buffer against risk.
the frequency at which interest payments must be made on the debt
is controlled directly, or indirectly through one or more intermediaries and owned at least 50 percent by
price at which something first trades at the start of a trading day
opening price
Investors that want to buy or sell as soon as the market opens will put in an order at the opening price. Depending on how the closing price for the prior day is determined, and if there is no after hours trading (AFT), the opening price will be the same as the prior trading day's closing price. Otherwise, the opening price may differ from the prior trading day's official closing price.
grant of financial interest in real property to a party that is not an owner of that real property and is recorded by a registration authority
A mortgage prevents transfer of the ownership of the real property unless the financial interest is satisfied. Any loan can be collateralized by a mortgage, including, for example, a bail bond.
preferred share that confers exactly one vote per share, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic stated income and dividends not paid in any year accumulate, and is registered
preferred, voting, redeemable, cumulative, registered share
investment fund that offered through a fund company that sells shares directly to investors
open-end investment
open-end fund
redemption provision defining the rights of the issuer to buy back a security at a call price after a call protection period
Most corporate and municipal bonds have ten-year call features (termed call protection by holders); government securities typically have none.
an offering of one or more debt instruments for sale
preferred share that confers multiple votes per share, may be exchanged for securities of another issuer, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic stated income, and is registered
preferred, enhanced voting, redeemable exchangeable, fixed income, registered share
structured finance that offers investors exposure to chosen underlying assets using various approaches and asymmetric pay-off profiles
principal protected note
There are one or more reference entities underlying the product. Redemption is made at least in the amount of the conditional capital protection at maturity, provided that no credit event by the reference entity has occurred. Conditional capital protection only applies to the nominal amount and not to the purchase price. The general functioning of a capital guaranteed structured instrument is as follows: the notional amount is split into a zero bond, that will deliver the capital guarantee at maturity, and the difference between the zero bond's value (= present value of the guarantee level at maturity) and the notional amount is used for structuring the performance component with options which deliver the agreed pay-off profile of the structured instrument.
capital protected note
organized collection of ledger accounts used to record and summarize changes in position as transactions are posted during an accounting period
specifies a legal entity that generates something
open-end professionally managed investment fund established for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets
mutual fund
standard (vanilla) investment fund
indicates the face value of an obligation, such as a bond or loan, that must be repaid at maturity, i.e., the base amount raised by a mortgage or other debt instrument
date on which a report was issued
has report date
concatenation of an entity's business number, the 'RM' abbreviation and a 4-digit subaccount number used for customs and import/export reporting purposes
An organization may have more than one import-exports account through its subunits, this is handled through additional 4-digit subaccount numbers. This is used as both an account and an identifier for the registration.
preferred share whose dividends are set, typically according to the terms of the prospectus
preferred share with fixed rate dividend
rule applied to calculate the number of securities for an allotment right, typically based on the number of these instruments that the holder holds
allotment right formula
Note that there may be a combination of a rule expressed in text as well as an expression or more complex formula embedded in a contract for making this determination.
limited liability company in which the members appoint one or more managers to handle the daily operations and administrative responsibilities of the organization
manager-managed limited liability company
If no members are interested in managing the LLC, an external manager (someone who doesn't own any portion of the LLC) can be hired to run the business operations, including, in some jurisdictions, a third-party entity, such as another company.
classifier for a financial instrument based on its type and features
Examples include equity instrument, debt instrument, option, future, etc. per the the ISO 10962 CFI (Classification of Financial Instruments) standard, as cash instruments or derivative instruments per the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) accounting standards, and so forth.
indicates a party (role) responsible for determining the value of an instrument
has calculation agent
relates an assessment or report to an agent that conducts the assessment
links a creditor to a debt that is outstanding and payable to them
control established through the terms of some contract
preferred share that confers zero votes per share, may be redeemed at the option of the issuer and/or of the shareholder with an extendable redemption date, provides the same dividends as common/ordinary shareholders, and is registered
preferred, non-voting, extendable, normal income, registered share
bilateral contract in which one party (protection seller) agrees to provide payment to the other party (protection buyer) should a credit event occur against the underlying, which could be a specified debt (the reference obligation), a specific debt issuer (reference entity), a basket of reference entities and/or reference obligations, or a credit index (reference index)
credit default swap
CDS
According to a 2022 working paper from the Federal Reserve, "credit default swaps (CDS) are, by far, the most common type of credit derivative. They are financial instruments that allow the transfer of credit risk among market participants, potentially facilitating greater efficiency in the pricing and distribution of credit risk. In its most basic form, a CDS is a contract where a 'protection buyer' agrees to make periodic payments (the CDS 'spread' or premium) over a predetermined number of years (the maturity or term of the CDS) to a 'protection seller' in exchange for a payment from the protection seller in the event of default by a 'reference entity.' CDS premiums tend to be paid quarterly and are set as a percentage of the total amount of protection bought (the 'notional amount' of the contract). CDS maturities generally range from one to ten years, with the five-year maturity being particularly common." See https://www.federalreserve.gov/econres/feds/files/2022023pap.pdf for more detail.
Note that the effective date of the contract indicates the starting date of the credit protection defined therein.
interest rate swap in which the fixed rate cash flows are compounded and paid once on the expiration date, rather than periodically; the payments on the other side (which can be based on a floating interest rate or a fixed rate) follow typical swap payment schedules
identifies a dwelling where an individual lives
common share that confers exactly 0 votes per share, is restricted from a sales / transfer perspective, is partially paid and is registered
common, non-voting, restricted, partly paid, registered share
preferred share that confers less than one vote per share, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic stated income, dividends not paid in any year accumulate, and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, restricted voting, redeemable, cumulative participating, registered share
preferred share that confers zero votes per share, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic stated income and dividends not paid in any year accumulate, and is registered
preferred, non-voting, redeemable extendable, cumulative, registered share
a debt instrument that is also a security, i.e., that can be bought and sold by the holder
Details from Ecofin: A [debt] instrument can be traded, if its features depend only on one borrower. If the instrument has no bilateral or multilateral obligations, the investor can easily transfer it to another investor without asking the borrower (except the terms prohibit this explicitly). This is simplified with securitised instruments, where the debt is already split into handy denominations which trade easily (e.g. in round thousands or millions as with bonds, commercial paper, etc.). But in principle it works also with interbank loans and similar instruments. FIBIM Definition: Financial instruments evidencing moneys owed by the issuer to the holder on terms as specified.
broad scale initiative, activity, or investment aimed at improving environmental sustainability, reducing ecological harm, or addressing environmental challenges
Key characteristics of an environmental or sustainability program include achieving measurable positive environmental outcomes, and aligning with broader sustainability goals, such as those outlined in international frameworks (e.g., the United Nations Sustainable Development Goals (SDGs), Paris Agreement). Large scale environmental programs may consist of a number of projects aimed at addressing specific requirements that support the broader challenges outlined under the program.
financial objective that aims to support geographically centralized, community development needs
situation linking party that enjoys the benefits of ownership (such as receipt of income) of something even though its ownership (title) may be in the name of another party (called a nominee or registered owner) to the asset that they own
Beneficial ownership may be shared among a group of individuals. If a beneficial owner acquires a position of more than 5 percent in the United States, it must file Schedule 13D or 13G under Section 12 of the Securities Exchange Act of 1934.
role of the party responsible for making investment decisions and managing the portfolio of an investment fund
fund manager
A fund manager is an individual or entity that oversees the investment strategy and asset allocation of a fund, with the objective of achieving financial returns in accordance with the fund's mandate. The fund manager may operate under regulatory oversight and fiduciary obligations, and may be supported by analysts, traders, and compliance officers.
A fund manager, often a mutual fund company, a brokerage firm, an investment adviser, or an insurance company, handles all of the transactions and investments within the plan.
program manager
plan manager
federal regulatory agency that is designated as the main agency responsible for oversight of a given institution for an institution
limited partnership that consists of one or more general partners who are liable for the obligations of the entity as well as one or more protected limited liability partners
The primary difference between an LLLP and more traditional limited partnership is that an LLLP allows liability transfer from the general partner's (to external insurer) for debts and obligations of the limited partnership. Typically, general partners manage the LLLP, while the limited partners' interest is primarily for investment purposes.
indicates the frequency with which some event or publication occurs
identification scheme used to identify taxpayers in some jurisdiction
common option giving the buyer (holder) the right, but not the obligation, to buy (via a call option) or sell (via a put option) the underlying assets specified at a pre-determined price (i.e., the strike price, fixed or calculated), on or before a specified date (the expiration date)
vanilla option
Vanilla options include call or put options that have no special or unusual features, and are typically exchange traded.
short-term debt instrument that is guaranteed and paid by a bank and used as a relatively safe form of payment for large transactions
bankers' acceptance
Considered negotiable instruments with features of a time draft, bankers' acceptances are created by the drawer and provide the bearer with the right to the amount noted on the face of the acceptance on the specified date. Unlike traditional checks, bankers' acceptances function based on the creditworthiness of the banking institution instead of the individual or business acting as the drawer. Additionally, the drawer must provide the funds necessary to support the bankers' acceptance, eliminating the risk associated with insufficient funds on the part of the drawer.
finance company that purchases retail and wholesale paper from automobile and other consumer and commercial goods dealers
has a generally unchangeable value used for certain calculations, expressed as some monetary amount
The notional amount (or notional principal amount or notional value) on a financial instrument is typically the face amount used to calculate payments made on that instrument. This amount generally does not change and is thus referred to as notional. When applied to a swap this is the amount used for calculating the actual value of the interest due. Also known as notional value when describing derivative contracts in the options, futures, and currency markets, this term is often used to value the underlying asset in a derivatives trade. It can be the total value of a position, how much value a position controls, or an agreed-upon amount in a contract. An example is that a firm might have a variable rate loan on $100,000 but decide to swap only $40,000. The $40,000 is the notional amount of the swap and becomes the amount on which interest is paid.
For certain kinds of derivative instruments, including but not limited to swaps, the notional amount indicates face amount of a swap upon which the payment streams for that swap are based. While this is typically constant throughout the lifetime of a contract, it can be accreting, amortizing, or custom, such as in the case of a notional step schedule.
government representing a group of indigenous people that has legal authority to govern those people, including authority to legislate the existence of tribal entities
statistical measure of economic activity that is regular and comparable in the context of a statistical area (region), used for analysis of economic performance and predictions of future performance
Example indicators include the average work week, weekly claims for unemployment insurance, new orders, vendor performance, stock prices, and changes in the money supply.
Barron's Dictionary of Business and Economic Terms, Fifth Edition, 2012
The two main features of any indicator are the regularity with which they are measured and published, and the fact that they are comparable from one release to the next.
relates a jurisdiction or situation to a rule, regulation or law (collectively "law") that is currently in force in that situation or jurisdiction
relates a polity to a geopolitical entity where the polity exercises dominion and authority of a political state
futures contract with an interest-bearing instrument as the underlying asset
interest rate future
Most interest rate futures that trade on American exchanges use U.S. Treasury securities, such as Treasury bills, Treasury bonds, certificates of deposit, Treasury notes, and Ginnie Mae securities, as the underlying asset.
forward contract in which a buyer and seller agree upon delivery of a specified quality and quantity of goods at a specified future date
commodity forward
Commodity forwards are often settled via cash transactions in many industries, including for the purposes of commodity merchandising. Terms may be more "personalized" than is the case with standardized futures contracts (i.e., delivery time and amount are as determined between seller and buyer). A price may be agreed upon in advance, or there may be agreement that the price will be determined at the time of delivery. A forward contract is a private and customizable agreement that settles at the end of the agreement and is traded over-the-counter.
something which is conferred by way of law or contract, such as a right
Obligations are an aspect of this category of thing, as are rights.
pool of funds that a group of investors combines for common benefit
An investment club pools the funds of its members, giving them the opportunity to share in a portfolio offering greater diversification and the hope of a better return on their money than they could get individually.
A fund can be established for any purpose, such as a municipality setting aside money for a construction project, monies designated to endow a university chair or for scholarships, or funds set aside by insurance companies to settle claims.
The US Securities and Exchange Commission describes a fund as an entity created to pool money from multiple investors.
fund
account that provides a record of money placed with a depository institution for safekeeping and management
Deposit accounts include savings accounts, money market accounts, and transactional accounts, such as demand deposit accounts, among others.
The account holder has the right to withdraw deposited funds, as set forth in the terms and conditions governing the account agreement. Deposit accounts may be insured up to a certain amount, depending on the jurisdiction.
debt instrument evidencing a pro rata share in a specific pledged revenue stream, usually lease payments by the issuer that are typically subject to annual appropriation
A certificate of participation (COP) is a type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. The certificate generally entitles the holder to receive a share, or participation, in the payments from a particular project. The payments are passed through the lessor to the certificate holders. The lessor typically assigns the lease and the payments to a trustee, which then distributes the payments to the certificate holders.
relates a derivative to contractual terms specific to valuation of the underlying asset(s)
has valuation terms
identifier that uniquely identifies a specific event in the lifecycle of a swap
indicates that the entity considered the 'end node' or consolidating entity (parent) fully consolidates the accounting of the 'start node' (child) per the accounting rules specified, and is the most distant consolidating entity to that child in any applicable ownership hierarchy
kind of event that occurs during one or more stages of the lifecycle of a trade
date that is or will be determined based on some formula
The hasDateValue property of a CalculatedDate is not set until the Date is calculated. Since the calculation may depend upon future events that may or may not ever happen, the hasDateValue property may never be set.
relates an organization, specifically the issuer of a financial instrument, to its principal executive address, as required for issuance of that instrument
Note that in most cases, the principal executive office address is also the headquarters address for a company.
preferred, voting, redeemable, adjustable income, registered share
relates a legal entity to another organization that it owns at least 50 percent of
common share that confers exactly one vote per share, is restricted from a sales / transfer perspective, is partially paid and is registered
common, voting, restricted, partly paid, registered share
preferred share that, in addition to paying a stipulated dividend, gives the holder the right to participate with common share holders in additional distributions of earnings under specified conditions
Participating preferred shares are rare, typically only issued when needed to attract investors.
security-based derivative whose underlier is based on equities (e.g. shares, basket of equities or index) or their cashflow(s)
bond secured by a limited revenue source, such as receipts derived from a designated project
standardized classification or delineation for an organization based on their main source of revenue
industry classification benchmark classifier
relates something to a commitment, contract, law, obligation, requirement, regulation, or similar concept that requires it
seven-character security identifier, issued by the London Stock Exchange, that is the National Securities Identifying Number (NSIN) for securities issued in the United Kingdom, which is also part of the ISIN for the security it identifies
Stock Exchange Daily Official List (SEDOL) code
indicates an amount of money representing the principal, interest, or other amount owed at a specific point in time
dividend that falls under capital gains tax rates that are lower than the income tax rates on unqualified (ordinary) dividends
indicates the notional amount represented by the index when it is first constituted
has original notional value
card verification code on a card's magnetic stripe that uses secure cryptographic processes to protect data integrity on the stripe, and reveals any alteration or counterfeiting
magnetic stripe verification code or value
floating rate leg of an inflation swap linked to an inflation index, such as the Consumer Price Index (CPI)
inflation leg
relates a swap lifecycle event to the identifier for the swap
pool of credit card receivables associated with designated accounts
credit card account pool
In a credit card securitization transaction only the receivables are sold, not the accounts that generate the receivables. The financial institution retains legal ownership of the credit card accounts and can continue to change the terms on the accounts. Accounts corresponding to securitized loans are typically referred to as the designated accounts (or sometimes trust accounts). The initial outstanding balances on the designated accounts are sold to the trust as are the rights to any new charges on the designated accounts. Subsequently, as cardholder purchase activity generates more receivables on the designated accounts, these new receivables are purchased by the trust from the originating institution/seller/transferor. The trust uses the monthly principal payments received from the cardholders to acquire these new charges or receivables. When the securitization is initially set up, the originating institution/seller adds sufficient receivables to support the principal balance of the certificates plus an additional amount (seller's interest) that serves to absorb fluctuations in the outstanding balance of the receivables. The originating institution/seller will make subsequent additions to the trust in order to keep the seller's interest at the required level.
delivery address that has all the address elements necessary to allow an exact match with the current Postal Service ZIP+4 and City State files to obtain the finest level of ZIP+4 and delivery point codes for the delivery address
A complete address may be required on mail at some automation rates.
preferred share that confers multiple votes per share, may be redeemed at the option of the issuer and/or of the shareholder with an extendable redemption date, provides a periodic stated income, and is registered
preferred, enhanced voting, extendable, fixed income, registered share
specifies an additional qualifier for a street or other delivery location, such as a dwelling located along a waterway
branch of a foreign bank that receives only such deposits as would be permitted for a corporation organized under section 25A of the Federal Reserve Act (12 U.S.C. 611-631)
rating score that is a simple numeric value on some scale, such as a credit rating for an individual
edge corporation whose charter allows the corporation to engage in international banking
indicates the rating assigned to a thing based on a grade or score according to a particular rating scale
relates a pooled fund to a sub-fund that is a constituent of the parent fund
has sub-fund
qualified measure of the rate at which holders of the debt instruments in the pool default on those instruments
default rate
identifies an additional federal regulator, over and above the primary federal regulator, for an institution
an explicit period of time prior to a put date during which holder or agent must give notice to an issuer
something pledged as security to ensure fulfillment of an obligation to another party, to lend money, extend credit, or provision securities
financial institution that provides the opportunity for individuals to invest in collective investment vehicles in a fiduciary rather than a principle role
Example institutional investors include banks, insurance companies, mutual funds, pension funds, and other similar large funds.
Typically more than 70 percent of the daily trading on the New York Stock Exchange is conducted on behalf of institutional investors.
Collective investment vehicles invest the pooled resources of the individuals and firms into numerous equity, debt, and derivatives promises. The individual, however, holds equity in the CIV itself rather what the CIV invests in specifically. The two most popular examples of contractual savings institutions are mutual funds and private pension plans.
institutional investor
investisseur institutionnel
institutional investment firm
state of affairs and coordinated set of activities designed to obtain benefits not available from managing them individually
program
programme
debt instrument that derives its cashflow from an underlying pool of mortgage loans or other receivables
pool-backed security
If the security is a component of a collateralized debt obligation, then the underlying pool is typically segmented into various tranches, each of which provides cash flows to hedge particular risks, or that offset other gains by time to maturity or other factors.
preferred share that confers exactly one vote per share, may be exchanged for securities of another issuer, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic stated income, and is registered
preferred, voting, redeemable exchangeable, fixed income, registered share
state of some action at some point in time
action status
indicates the currency defined for the credit card product
specifies an identifier for a street in some context (e.g., 'Baker', 'First', 'Main')
preferred share that confers zero votes per share, may be exchanged for securities of another issuer, provides a periodic stated income and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, non-voting, exchangeable, participating, registered share
common share that confers less than one vote per share, is unrestricted from a sales / transfer perspective, is fully paid and is registered
common, restricted voting, unrestricted, fully-paid, registered share
identifier that specifies a universal method of identifying exchanges, trading platforms, regulated or non-regulated markets, and data reporting services providers as sources of prices and related information in order to facilitate automated processing
ISO 10383, Securities and related financial instruments - Codes for exchanges and market identification (MIC), Third edition, 2012-10-01
It is intended for use in any application and communication for identification of places - where a financial instrument is listed (place of official listing), - where a related trade is executed (place of trade), and - where trade details are reported (trade reporting facility).
The value of the dividend from the preferred share is set by a predetermined formula to move with rates, and because of this flexibility preferred prices are often more stable then fixed-rate preferred stocks.
negotiable commodity that is a mineral resource obtained via withdrawal from the natural environment
extraction resource
These resources include ores, which contain commercially valuable amounts of metals, such as iron and aluminum, as well as precious metals, such as silver, gold, and platinum; precious stones, such as diamonds; building stones, such as granite; and solid fuels, such as coal and oil shale.
written contract between a client and service provider whereby the service provider supplies some service in the form of time, effort, and/or expertise in exchange for compensation
ownership interest in a fund, which may represented by fund units that confer financial rights and governance privileges
financial instrument identifier that is defined as specified in the Object Management Group (OMG) Financial Instrument Global Identifier (FIGI) Specification
The development of the Financial Instrument Global Identifier (FIGI) originated from a need for a standard methodology to bridge across multiple identification systems for financial instruments. Without prejudice against any existing symbol-based solutions, or any question of the validity of one system over the other, the FIGI standard utilizes a metadata driven approach to enable the unique and persistent identification of financial instruments. While in most cases, a FIGI uniquely identifies a security, there are situations outside of the U.S. where it instead identifies a listing for a security, similar to a ticker symbol.
specifies value of
option trading strategy that consists of being short (selling) an out of the money put and being long (i.e., buying) an out of the money call, both with the same maturity
risk reversal
A risk reversal is a position which simulates profit and loss behavior of owning an underlying security; therefore, it is sometimes called a synthetic long. This is an investment strategy that amounts to both buying and selling out-of-money options simultaneously. In this strategy, the investor will first make a market hunch; if that hunch is bullish, he will want to go long. However, instead of going long on the stock, he will buy an out of the money call option, and simultaneously sell an out of the money put option. Presumably he will use the money from the sale of the put option to purchase the call option. Then as the stock goes up in price, the call option will be worth more, and the put option will be worth less.
written contract related to another contract designed to provide clarity and additional protection for all parties involved, that is separate from the primary contract and that can be independently enforced
Examples may be related to leases, to clarify responsibilities with respect to maintance and repair, to partnerships, clarifying how disputes should be resolved, loan agreements such as deeds of trust, covering the conditions under which the collateral would be forfeited, and uniform commercial code (UCC) agreements.
In cases where there are discrepancies between the collateral agreement and primary contract, the primary contract, which may be a master agreement, for example, takes precedence.
a party that extends credit or money to a borrower with the expectation of being repaid, usually with interest
a minor who is allowed to conduct a business or any other occupation on his or her own behalf or for their own account outside the control of a parent or guardian
The minor will then have full contractual capacity to conclude contracts with regard to the business. Whether parental consent is needed to achieve emancipated status varies from case to case. In some cases, court permission is necessary. Protocols vary by jurisdiction.
forward contract in a foreign exchange market that locks in the price at which an entity must buy or sell a currency on a future date
currency forward outright
The holders of a currency forward are obligated to buy or sell the currency at a specified price, at a specified quantity and on a specified future date. These contracts cannot be transferred. Jan 10 Review Notes Outright Forward is the term for the professional markets. Spot + Swap where Swap is 2 simultaneous transactions.
forward outright
outright forward currency transaction
municipal bond supported by the revenue from a specific project
Revenue bonds are municipal bonds that finance income-producing projects, such as toll bridges, highways, or local stadiums, and are secured by a specified revenue source. Typically, revenue bonds can be issued by any government agency or fund that is managed in the manner of a business, such as entities having both operating revenues and expenses.
chooses someone, or a group of individuals, to hold office or some other position by voting
In the case of an election of the members of a board of directors, the bylaws state the manner in which that process is effected. The candidate members may be recommended by the board or other proxy and are then elected by the shareholders. A similar process may be conducted to elect outside auditors.
the election of officers of an association, the election of directors by the shareholders
agreement to deliver and settle a given amount of money in one currency, in exchange for a given amount in another currency at an agreed rate of exchange
currency derivative
FX derivative
foreign exchange derivative
forex derivative
controlling party that is responsible for the management of daily business operations of an organization
links a depositary receipt to the instrument that it represents
has traded security
bond issued over time under a shelf registration program, where each issue may have a different coupon and maturity typically ranging from one to ten years
A medium-term note (MTN) is a debt note that usually matures (is paid back) in 5 to 10 years, but the term may be less than one year or as long as 100 years. They can be issued on a fixed or floating coupon basis.
Medium term notes are typically issued by corporations and financial institutions, although GSEs also have MTN programs. MTNs may be issued under a shelf registration program which allows the company to issue bonds over time with varying maturities and coupons. Companies issue MTNs to have a more flexible source of funding. They may also issue MTN in response to 'reverse inquiry' by investors looking for bonds with specific maturities, issue size and coupon.
By shelf registration we mean the security registration process where an issuer registers in advance, and can issue lots of securities for up to three years.
terms that include a schedule for repayment of the principal over the lifetime of the bond, typically in equal payments at regular intervals
identifies the producer that fabricates, manufactures or otherwise creates something through some production process
depends on an assumption or requirement stated in
is predicated on
interest rate derivative in which the buyer receives payments at the end of each period in which the interest rate exceeds the agreed strike price
An example of a cap would be an agreement to receive a payment for each month the LIBOR rate exceeds 2.5%.
interest rate cap option
The interest in each period is effectively capped by the strike rate. That is, the rate of interest may not go above the strike rate because the holder is expected to exercise the option to take the strike as the rate of interest instead.
classifier used to indicate the state of an artifact with respect to its development lifecycle
FIBO currently has three maturity levels: Informative, Provisional, and Release.
indicates something that a controlling party has some amount of authority or influence over
concept scheme for concepts derived from ontology properties
FIBO property scheme
written contract between parties that commits the underwriter to assuming risk
statistical measure involving security prices
price analytic
classifier for regularly updated interest rates that are publicly accessible, typically set by a central bank or group of financial institutions
Benchmark rates, such as EURIBOR, the Fed Funds rate, and many others including those identified as FpML rates, are used as benchmarks for a variety of debt instruments.
identifies the primary federal regulator for an institution
exotic option linked to the performances of two or more underlying assets
An asset maximum or minimum payout rainbow is similar to the best of n assets plus cash, with the exception that no cash payoff is possible and there is a strike price for this type of option. The payoff of a call and put are given as: Rainbow-Call = max[0, max(S1, S2) - X] Rainbow-Put = max[0, X - max(S1, S2)] Minimum of n Assets. The counterpart to a maximum of n assets, this rainbow pays out the value of the underperformer of the n assets. The payoff for minimum of 2 asset rainbow calls and puts are given as: Rainbow-Call = max[0, mainS1, S2) - X] Rainbow-Put = max[0, X - min(S1, S2)]
Better of n Assets This type of rainbow is similar to the best of n assets plus cash but with the exception that there is no possible cash payoff, and X is set to 0. With this in mind, a better of 2 assets rainbow is essentially a two-asset call option, with a payoff being: Rainbow = max[0, max(S1, S2)] Worse of n Assets Essentially the opposite to the better of n assets, with the payoff being on the asset with the lower value. We can give the payoff for this option on 2 assets as: Rainbow = max[0, min(S1, S2)]
A best of assets plus cash rainbow effectively has n + 1 payoff possibilities. If we consider a 2 asset "best of plus cash", the payoff at expiry is a choice between Asset 1, Asset 2, or the predetermined cash amount. There is no strike price and the payoff is given as: Rainbow = max(S1, S2, Cash;T)
rainbow option
Rainbow options are usually calls or puts on the best or worst of n underlying assets. Like a basket option, which is written on a group of assets and pays out on a weighted-average gain on the basket as a whole, a rainbow option also considers a group of assets, but usually pays out on the level of one of them. A simple example is a call rainbow option written on FTSE 100, Nikkei and S&P 500 which will pay out the difference between the strike price and the level of the index that has risen by the largest amount of the three.
Rainbbow options can speculate on the best performer in the group or minimum performances of all the underlying assets at one time. Each underlying may be called a color so the sum of all of these factors makes up a rainbow. These structures can be rather exotic and made for institutional clients when referring to financial assets. Rainbow options can be structured in many ways depending on how the performances of each underlying asset are considered. Some pay off based on the best or worst performance among the underlying assets. In other words, it looks at the top or bottom performance and pays off based on that single asset. These are sometimes called 'best of' or 'worst of' rainbow options.
event related to the status or level of completion of a designated activity, task, or segment of work required for contract fulfillment
owners' share in a business plus operating profit
owners' equity
Owner's equity is represented by capital investments and accumulated earnings less any dividends or other financial obligations. It is typically used to talk about equity in a business, but may also refer to the net assets of a pool or special purpose vehicle.
contributed capital
capital
cooperative association organized for the purpose of promoting thrift among its members and creating a source of credit for provident or productive purposes
As soon as you deposit funds into a credit union account, you become a partial owner and participate in the union's profitability. Credit unions may be formed by large corporations and organizations for their employees and members.
party that owns some stake in some organization by way of investment
This is regardless of whether or not the investor is also a constitutional owner (e.g. shareholder) in the entity.
preferred share that confers multiple votes per share, may be redeemed at the option of the issuer and/or of the shareholder with an extendable redemption date, provides a periodic stated income and dividends not paid in any year accumulate, and is registered
preferred, enhanced voting, extendable, cumulative, registered share
indicates a fully-specified address component that consists of a primary address number, predirectional, street name, suffix, postdirectional, and an optional secondary unit
indicates something that a party holds title to and may possess
short-term obligation to repay a specified principal amount on a certain date, together with interest at a stated rate, usually payable from a defined source of anticipated revenues
Notes usually mature in one year or less, although notes of longer maturities are also issued.
indicates something controlled in the context of a control situation
forward contract to buy or sell the underlying equity stock, equity index, basket of equity stock, equity futures contract, or equity option at a specified future date at the price specified at the outset of the contract
equity forward
basket whose constituents have some relative importance with respect to one another
preferred share whose dividends, if not paid on time, accumulate until paid out
These dividends have precedence over ordinary dividends which cannot be paid until any cumulative dividend obligations have been paid. Dividends are typically deferred due to insufficient earnings or other business reasons.
interest rate swap that exchanges cashflows based on two different interest rates in different currencies
float float cross-currency interest rate swap
float-float cross-currency interest rate swap
finance services provider primarily engaged in providing infrastructure for hosting or data processing services
These establishments may provide specialized hosting activities, such as web hosting, streaming services or application hosting, provide application service provisioning, or may provide general time-share mainframe facilities to clients. Data processing establishments provide complete processing and specialized reports from data supplied by clients or provide automated data processing and data entry services.
person or body of persons having judicial authority to hear and resolve disputes on the basis of statutes or the common law
A court of law is a formal forum of justice that may have authority over civil, criminal, ecclesiastical, or military cases.
any party that purchases goods or services for resale and acts on their own behalf in a transaction
A dealer is a counterparty or principal in the transaction with the customer.
party that evaluates or estimates the nature, quality, ability, or value of someone or something
service provided to consumers and businesses by financial institutions such as banks, insurance companies, brokerage firms, consumer finance companies, and investment companies
record for a security in a securities registry
specifies a unit of currency representing the exchanged (target) currency in an exchange rate; R units of this currency represent one unit of the base currency
negotiable commodity including plastics
polypropylene resource
jurisdiction (country, county, state, province, city) in which the financial instrument is legally recorded for regulatory and/or tax purposes
identifies a convention regarding how certain recurring dates should be handled with respect to a given schedule, such as the end of the month
has business recurrence interval convention
relates an account statement to the amount of money available in that account at the beginning of the statement period
regulatory agency that has jurisdiction over the assessment, determination, collection, imposition and other aspects of any tax
sequence of characters identifying a financial transaction uniquely whenever useful and agreed by the parties or community involved in the transaction
ISO 23897:2020, Financial services - Unique transaction identifier (UTI)
Harmonization of the Unique Transaction Identifier - Technical Guidance, 20 Feb 2017, described in https://www.bis.org/cpmi/publ/d158.pdf
In particular, a UTI will help to ensure the consistent aggregation of OTC derivatives and other securities transactions by minimising the likelihood that the same transaction will be counted more than once (for instance, because it is reported by more than one counterparty to a transaction, or to more than one trade repository (TR)).
entitlement that combines the structure of an open-end certificate with a leverage option with no fixed term, making leverage available without a term restriction, without a knock-out barrier dependency
constant leverage certificate
relates a formal organization to the situation in which it is owned directly by another entity
convention for determining settlement dates by reference to some jurisdiction or as set by a given exchange or similar venue
relates a security to its ISO 18774-compliant short name, which includes an issuer short name, abbreviated instrument characteristics, and abbreviated instrument description per the ISO standard
privileges allotted to existing security holders, entitling them to receive new securities free of charge
allotment right
Allotment generally means the distribution of equity, particularly shares granted to a participating underwriting firm during an initial public offering (IPO).
bonus right
sequence of characters uniquely identifying a client within the context of some organization
negotiable commodity involving services such as transportation, communications, and trade
service resource
recurrence interval indicating the frequency with which step changes occur, which is a multiple of the calculation period in the calculation schedule
indicates the quotation date for a given market rate or indicator
Typically this property reflects a daily average or end of day quote.
Note that this property requires a reified date value, if used.
asset that is a physical, measurable resource, i.e., one that takes a physical form
Tangible assets include cash, cash equivalents and accounts receivables (AR), inventory, equipment, buildings and real estate, crops, and investments. Tangible assets such as art, furniture, stamps, gold, wine, toys and books of significant value may be included in an individual or organization's asset portfolio.
indicates the asset in an ownership situation
foreign banking organization that is a bank holding company in the United States
foreign banking organization as a bank holding company
A foreign banking organization that also acts as a bank holding company is thus supervised by the Board of Governors of the Federal Reserve.
Most exchange traded bonds are corporate bonds (but most corporate bonds are not exchange traded bonds).
structured finance that is a short-term note linked to an underlying asset that offers a steady stream of income
structured finance without principal protection
The redemption at the end of the term is determined on the basis of the performance and final fixing of the underlying asset: a redemption at the nominal value is guaranteed as long as the underlying asset has not touched its barrier during relevant barrier monitoring. If the underlying asset has touched its barrier but is again above the strike price at final fixing, the nominal price is also repaid. Nevertheless, if the underlying asset has touched its barrier during barrier monitoring and closes below the strike price at final fixing, the underlying asset is delivered or cash compensation paid, provided that no credit event by the reference entity has occurred. Depending on the characteristics of the product, either a coupon or a discount to the underlying asset can apply. A coupon is paid out regardless of the performance of the underlying asset, provided that no credit event by the reference entity has occurred.
structured finance without capital protection
preferred share that confers less than one vote per share, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic stated income and dividends not paid in any year accumulate, and is registered
preferred, restricted voting, redeemable extendable, cumulative, registered share
counterparty to and typically owner of an insurance policy
collection of quantitative target values used to calibrate the level of achievement a borrower makes with respect to a key performance indicator, by date, including, but not limited to, the methodology used to calculate its value at any point over the lifetime of a loan
sustainability performance target
SPT
An SLL borrower should clearly communicate to its lenders its rationale for the selection of its KPI(s) (i.e. relevance, materiality, whether it is core to the borrower’s overall business) and the motivation for the SPT(s) (i.e. ambition level, benchmarking approach and how the borrower intends to reach such SPTs). Borrowers are encouraged to position this information within the context of their overarching objectives, sustainability strategy, policy, sustainability commitments and/or processes relating to sustainability.
The process for calibration of the SPT(s) per KPI is key to the structuring of SLLs, since it will be the expression of the level of ambition the borrower is ready to commit to. The SPTs must be set in good faith and remain relevant (so long as they apply) and ambitious throughout the life of the loan.
preferred share that confers multiple votes per share, has no fixed maturity date, provides a periodic income whose dividend rate is set periodically, and is registered
preferred, enhanced voting, perpetual, adjustable income, registered share
system for assigning a value to something according to some scale with respect to quality, a standard, or ranking
indicates the delegated legal authority that is vested in the controlling party
relates something to the length of time it has existed
preferred share that confers exactly one vote per share, may be exchanged for securities of another issuer, may be redeemed at the option of the issuer and/or of the shareholder, provides the same dividends as common/ordinary shareholders, and is registered
preferred, voting, redeemable exchangeable, normal income, registered share
preferred share that confers exactly one vote per share, may be exchanged for securities of another issuer, provides a periodic stated income and dividends not paid in any year accumulate, and is registered
preferred, voting, exchangeable, cumulative, registered share
a survey conducted on a regular basis that presents analytical information related to the labor force of a given statistical area, surveyed with respect to households, and is, for the most part, seasonally adjusted
indicates the date something was included in something else
lifecycle of an agreement, including, but not limited to a credit agreement, financial instrument, or other formal contract, from initial stages through retirement
Certain business agreements, such as partnership agreements,may involve planning, drafting/review/revision, execution and management, renewal, and possibly sunsetting phases. Financial contracts, such as loans and other instruments have specific stages and events during the execution and management phase, i.e. from the effective date of the contract through maturity and redemption.
stipulation that specifies conditions that must be met before some aspect of a contract takes effect
There may also be condition precedents in the ongoing life of a contract, which state that if condition X occurs, event Y will then occur. Condition X is the condition precedent.
Condition precedents are common in wills and trusts. They include events or states of affairs that act as triggers for the contract to come into effect, such as a beneficiary reaching the age of maturity, or death of a trustor, as well as define obligations on a party to the contract, such as those required of a trustee on the death of a trustor.
pooled investment vehicle in which investors hold units that represent a proportional share of the fund's underlying assets, typically used in pensions or insurance-based products
Examples include authorized unit trusts (AUTs), investment companies with variable capital (ICVCs), and insurance-linked unitized funds.
unitized fund
The differentiator with respect to a unitized fund is that investors hold units, rather than a direct shareholding or segregated account.
The concept of a 'unitized fund' comes up in the context of the Financial Conduct Authority (FCA)'s framework for collective investment schemes (CIS) in the United Kingdom, particularly in the context of authorized unit trusts (AUTs) and insurance-based investments.
interest rate derivative in which the buyer receives payments at the end of each period in which the interest rate is below the agreed strike price
interest rate floor option
financial product involving the issuance of credit, debit, or other payment cards
trust created during an individual's lifetime where a designated person, the trustee, is given responsibility for managing that individual's assets for the benefit of the eventual beneficiary
A living trust is designed to allow for the easy transfer of the trust creator or settlor's assets while bypassing the often complex and expensive legal process of probate. Living trust agreements designate a trustee who holds legal possession of assets and property that flow into the trust.
warrant giving the buyer (holder) the right, but not the obligation, to acquire specific underlying assets during a specified period at a specified price
call warrant
Exercising a call warrant whose underlying instrument is an equity involves buying new shares directly from the company, causing dilution.
identifier assigned to a taxpayer that enables compulsory financial charges and other levies to be imposed on the taxpayer by a governmental organization in order to fund government spending and various public expenditures
Tax identifiers are used for various tax-related purposes in the United States and in other countries under the Common Reporting Standard (CRS).
produces through the application of one or more mathematical or logical steps or rules
relates a responsibility, capacity, or action to that which requires it
strategy for calculating or otherwise establishing a price for something
price determination method
card verification value specifically for Visa and Discover payment cards
specifies the date on which interest begins to accrue on a fixed-income security
Investors who purchase a fixed-income security between interest payment dates must also pay the seller or issuer any interest that has accrued from the dated date to the purchase date, or settlement date, in addition to the face value.
the instrument by which an entity is incorporated
creates through a fabrication, manufacturing or production process
contract terms specific to the conditions, conventions and other stipulations related to the exercise of an option or entitlement
exercise terms
subset of the employed population that includes persons that are working fewer than 30 to 35 hours per week due to illness or other health or medical limitations, childcare problems, family or personal obligations, being in school or training, retirement or Social Security limits on earnings, and having a job where full-time work is less than 35 hours
employed population part-time for non-economic reasons
population employed part-time for non-economic reasons
indicates a premium payable for a contract based on the index
specifies a geographic directional symbol that occurs after the primary street number but before the street name in a street address
card verification value specifically for American Express and Discover payment cards
contractual commitment to settle in cash
cash settlement terms
Note that the valuation determined via the appraisal of the underlying asset may include a quotation that is either an upper limit to the outstanding principal balance of the reference obligation for which the quote should be obtained, or a floating rate payer calculation amount.
Note that the security price represents a price per share or per lot, whereas the settlement amount represents a total.
guaranty that is realized as an insurance policy
common share that confers less than one vote per share, is restricted from a sales / transfer perspective, is partially paid and is registered
common, restricted voting, restricted, partly paid, registered share
indicates the form in which the security is issued, typically in registered form
bankers' bank whose activities are not limited by specific requirements of the Federal Reserve
bankers' bank that is not subject to reserve requirements
specifies a a location with respect to a given street
preferred share that confers multiple votes per share, may be exchanged for securities of another issuer, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic stated income, dividends not paid in any year accumulate, and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, enhanced voting, redeemable/exchangeable/extendable, cumulative participating, registered share
indicates the organization that the board member oversees
ownership by some party of some formal organization or organizational sub-unit that is a foreign affiliate and legally part of the owning entity
service provided on behalf of an institutional market participant by a clearing services provider following a trade that finalizes the transfer of security ownership
business entity established to own stock in another company, typically to own enough voting shares to have some level of control over that company's policies and management
Holding companies protect their owners from losses to some degree, protecting assets, for example, in case of bankruptcy. They can also be set up to own property such as real estate, patents, trademarks, stocks and other assets to limit financial and legal liability
index whose underlying reference obligations are credit default swap instruments
credit default swap index
identifier that is officially allocated to an organization at the time of registration, typically in a jurisdiction in which said organization is organized or registered and used in that jurisdiction to identify the organization
In some jurisdictions, such as the State of California, registration identifiers are issued to corporations, including non-profit corporations, limited liability companies, certain partnerships, and foreign corporations doing business in California. The same or a very similar process is used for registration of corporations across the US.
A registration identifier may be required for official communications and is publicly available. The relationship to the jurisdiction in which the organization is organized or registered is typically required, but is optional here to cover cases where jurisdictions may overlap or are not as clearly defined.
indicates the grade or score associated with a rating with respect to a particular rating scale
indicates the period of time during which a contract is intended to be in force once it has been executed
has contract duration
Note that the duration may be relative or explicit, depending on the nature of the contract, and may be extended if the provisions of the contract permit extension.
measure of the monthly rate of loan prepayments as a percentage of the original pool balance
absolute prepayment rate
The ABS measurement differs from conditional prepayment rate (CPR) used in the mortgage industry, which measures prepayment as an annualized percentage of the current pool balance.
ABS is defined by the following formula where SMM refers to Single Monthly Mortality, which measures the percentage of dollars prepaid in a given month expressed as a percentage of the scheduled loan balance. ABS = (100 * SMM)/100 + (SMM X (Age - 1).
basic rate of interest on which the actual rate a bank charges on loans to its customers is calculated
Typically, the bank base rate is a reference rate set by a central bank. Banks that are regulated by a given central bank cannot lend below the base rate to their customers. The bank base rate is determined on an ongoing basis and represents the central bank's judgement of the price of short-term funds on their interbank market.
indicates a termination date that occurs prior to an explicit expiration date
has early termination date
purchase right that gives a prospective acquiree's common shareholders the right to buy common shares of the firm or common shares of anyone who acquires the firm at a deep discount to their fair market value
common share purchase right
second-level classifier for a transaction, e.g., direct deposit, check, cash advance, withdrawal, payment, purchase, and so forth
return swap whose return leg underlier is based on equities
equity price return swap
A price return equity swap is similar to a total return swap, except that dividends are not passed through to the buyer).
strategy for calculating or otherwise establishing a reference final price for the contract
cash settlement method
The method may include an independently administered synthetic auction process that sets the reference final price.
measure of some amount of money expressed as a percentage of some other amount, some notional amount or some concrete money amount
indicates the specific terms related to redemption as specified in the instrument or a related contract document
delivery address for a delivery point in Puerto Rico that may include a supplementary address line containing the abbreviation 'URB' followed by the name of the urbanization area that is appropriate for that address
indicates a controlled affiliate that it owns at least 50 percent of
identifies some party or something that produces something via some equation, logic, or rules
realization of a phase in a given lifecycle
product provided to consumers and businesses by a depository institution
Examples include checking account, savings account, certificate of deposit, debit or pre-paid card, or credit card.
indicates the exchange that is considered the primary market for a security; typically, but not always, in the country in which the security was originally issued
A security may have been originally listed on the Frankfurt exchange, but its current home is the London Stock Exchange, for example.
A primary market is one that issues new securities on an exchange for companies, governments, and other groups to obtain financing through debt-based or equity-based securities.
preferred share that confers exactly one vote per share, has no fixed maturity date, provides a periodic income whose dividend rate is set periodically, and is registered
preferred, voting, perpetual, adjustable income, registered share
discount rate that results in a net present value (NPV) of zero for a series of future cash flows
internal rate of return
This concept is central to many definitions of debt instrument analytics, and is the inverse of net present value.
difference between an offer (ask) price and a bid price
bid ask spread
realization, from start to finish of a phase in an occurrence of a specific contract lifecycle
indicates the nature of the entity as defined from a legal or regulatory perspective in a given jurisdiction
financial instrument representing an ownership interest in an entity or pool of assets
measure of potential cash flow that excludes the effects of capital structure, taxes and non-cash expenses
earnings before interest, taxes, depreciation and amortization
EBITDA is often used as a proxy for cash flow, as it shows how much cash a company can generate from its core operations. However, EBITDA has some limitations, such as ignoring the cost of maintaining and replacing capital assets, and being susceptible to manipulation by excluding certain expenses.
By stripping out the non-cash depreciation and amortization expense as well as taxes and debt costs dependent on the capital structure, EBITDA attempts to represent cash profit generated by the company's operations. EBITDA is not a metric recognized under Generally Accepted Accounting Principles (GAAP). Some public companies report EBITDA in their quarterly results along with adjusted EBITDA figures typically excluding additional costs, such as stock-based compensation.
structured system of financial account codes used to classify, record, and organize an entity's financial transactions in accordance with applicable legal, regulatory, and reporting requirements
person in the service of another under any contract of hire, express or implied, oral or written, where the employer has the right to control and direct that person in the material details of how the work is to be performed
indicates a functional entity or party responsible for circulating, distributing, or publishing something
exchange in which buyers and sellers submit competitive bids that do not involve direct negotiations between parties, as part of an auction scheduled either on demand or on a periodic basis
person elected or appointed to administer some aspect of a government
preferred share that confers less than one vote per share, may be exchanged for securities of another issuer, provides a periodic stated income and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, restricted voting, exchangeable, participating, registered share
date and time at which a request was made
has request date time
strategy for calculating or otherwise determining an official closing price
closing price determination method
The official closing price is typically the final price at which something trades during regular market hours on an exchange or trading venue. Because of the evolving nature of online trading in a 24 hour world, every exchange has a method of calculating its official closing price, although that methodology changes from time to time. They may also publish an adjusted closing price, which reflects changes to the price that reflect corporate actions and after hours trading that occur before the opening of the exchange on the following day. Understanding how the closing price is determined is important to ensure price comparability for a given security across exchanges.
settlement terms specifying additional details with respect to what is to be delivered when, to whom, under what conditions at the time of settlement
contract party that is obliged to purchase a deliverable obligation (asset) if a triggering event occurs, depending on the event and the contract
deliverable obligation buyer
a strip that represents the principal portion of the monthly payments on the underlying debt instrument, such as a bond
principal-only strip
bond issued by the government of a country
Sovereign bonds issued by G20 developed countries are generally full faith and credit obligations. Sovereign bonds issued by emerging and developing countries may be issued in local currency or a G7 currency, and may either be full faith and credit (unsecured) or secured.
structured product that provides the possibility to participate in the performance of an asset or basket of assets
participation instrument
These assets could be anything, from equities, funds, bonds, ETFs indices to a mix of those. The most common participation products are tracker certificates, providing 1-to-1 participation to the performance of a basket of securities.
The construction is generally based on a low exercise price option (LEPO) (base value less discounted future dividends) which in some cases might be comparable to a direct investment in the underlying asset(s) or a LEPO combined with other options, which together provide the desired disbursement profile.
participation product
option whose underlying asset is a group, or basket, of commodities, securities, indices, or currencies
basket option
As with other options, a basket option gives the holder the right, but not the obligation, to buy or sell the basket at a specific price, on or before a certain date. This exotic option has all the characteristics of a standard option, but with the basis of the strike price on the weighted value of its components. Currency baskets are the most popular type of basket option, and they will settle in the holder's home currency. Because it involves just one transaction, a basket option often costs less than multiple single options as it saves on commissions and fees.
domestic institution that engages in banking activities usually in connection with the business of banking in the United States
This classification is used primarily to cover organizations acting as financial institutions in the US that are not otherwise classified in the context of the National Information Center (NIC).
indicates the basis on which default interest is to be calculated, as a period of time
has default interest compounding basis
account close date, transaction record close date, and so forth
virtual address that may be assigned to a fixed-line telephone subscriber station connected to a telephone line or to a wireless electronic telephony device, such as a radio telephone or a mobile telephone, or to other devices or services for data transmission via the public switched telephone network (PSTN) or other public and private networks
Telephone numbers are assigned within the framework of a national or regional telephone numbering plan to subscribers by telephone service operators, which may be commercial entities, state-controlled administrations, or other telecommunication industry associations.
credit facility and fixed-income security that may be distributed across a group of lenders
loan participation note
LPN
The main difference between a loan participation and a loan syndication is that in a loan participation, one lender sells ownership interests in a loan to other lenders, while in a loan syndication, the lenders work together to originate and lend on the loan.
With an LPN, a lead bank underwrites and issues the loan. This lending institution then recruits other banks to participate and share the risks and profits on a pro rata basis. The lead lender keeps a partial interest in the loan and is responsible for servicing it.
purchase right that gives a prospective acquiree's preferred shareholders the right to buy preferred shares of the firm or preferred shares of anyone who acquires the firm at a deep discount to their fair market value
preferred share purchase right
futures contract whose underlying asset is at least one (other) futures contract
future on future
an organization identifier that uniquely identifies a legal person as defined in ISO 17442
credit event involving the refusal to honor the terms of a contract
repudiation
investment vehicle that provides loans or other forms of credit to companies, typically outside of the traditional banking system
private credit fund
These funds are managed by asset managers, private equity firms or specialized lenders (both nonprofit and for-profit) and cater to institutional investors, high-net-worth individuals, family offices, and, in some cases, retail investors. The kinds of loans they provide include senior secured loans, mezzanine debt, unitranche loans, and special situations financing through direct lending to companies. These funds are typically illiquid, with long investment horizons (5–10 years). They generally provide higher returns than traditional fixed-income instruments, but with greater risk due to borrower default potential. Nonprofit funds may provide lower returns because of the mission to provide affordable funding to disadvantaged borrowers. Key features of private credit funds include: - Loans are held on the fund's balance sheet - Returns come primarily from interest income and potential capital appreciation - Often involve direct negotiations and customized loan terms.
the date on which the first interest payment is due
underwriting agreement between an organization (typically an investment bank) and a securities issuer that commits the underwriter to assuming risk involved in buying a new issue of securities and reselling it to the public
Sales may be made either directly or through third-party dealers.
an adult who is legally identified as not having legal capacity, typically as a result of some inherent physical or mental incapacity or as a result of having contracted some illness which temporarily deprives them of such capacity
Individuals may have an inherent physical condition which prevents them from achieving the normal levels of performance expected from persons of comparable age, or their inability to match current levels of performance may be caused by contracting an illness. Whatever the cause, if the resulting condition is such that individuals cannot care for themselves, or may act in ways that are against their interests, those persons are vulnerable through dependency and require the protection of the state against the risks of abuse or exploitation. Hence, any agreements that were made are voidable, and a court may declare that person a ward of the state and grant power of attorney to an appointed legal guardian.
preferred share that confers exactly one vote per share, may be exchanged for securities of another issuer, provides the same dividends as common/ordinary shareholders, and is registered
preferred, voting, exchangeable, normal income, registered share
indicates the first date on which the bond may be called for redemption at a price above par
code that denotes an entity legal form as defined in ISO 20275
relates someone to the minimum legal working age for the jurisdiction in which they reside
representative office that (1) Is established by a foreign bank that operates two or more branches, agencies, commercial lending companies, or banks in the United States; (2) Is located in the same city as one or more of the foreign bank's branches, agencies, commercial lending companies, or banks in the United States; (3) Manages, supervises, or coordinates the operations of the foreign bank or its affiliates, if any, in a particular geographic area that includes the United States or a region thereof, including by exercising credit approval authority in that area pursuant to written standards, credit policies, and procedures established by the foreign bank; and (4) Does not solicit business from actual or potential customers of the foreign bank or its affiliates.
regional administrative office of a foreign bank
bond with a variable interest rate based on a published reference interest rate
The adjustments to the interest rate (coupon) are made periodically, usually on a quarterly or monthly basis, and are tied to a certain money-market index. Also known as a "floater". For example six months USD LIBOR + 0.20%.
corporation approved by its jurisdictional oversight and tax authorities as operating for educational, charitable, social, religious, civic or humanitarian purposes
A not-for-profit corporation is formed by incorporators, and has a board of directors and officers, but no shareholders. These incorporators, directors and officers may not receive a distribution of (any money from) profits, but officers and management may be paid reasonable salaries for services to the corporation.
professionally-managed investment fund with three essential characteristics: capital is sourced from people in the community (ideally from retail/non-accredited investors); capital is invested into local people, projects, and businesses; and capital is deployed by individuals in the community, typically but not necessarily a nonprofit fund
community investment fund
CIF
Community Investment Fund Handbook and Toolkit, available at https://www.nc3now.org/community-investment-fund-handbook--toolkit.html.
A community investment fund is typically but not necessarily a nonprofit fund.
classifier and code for a financial instrument defined in the ISO 10962 Classification of Financial Instruments (CFI) Code Scheme
financial instrument classification code
indicates the merchant (seller) involved in the transaction
derivative instrument that is privately negotiated between parties to buy the underlier at a specified future date at the price specified in the contract
forward
Certain contracts labeled 'forwards', such as London Metal Exchange (LME) Forwards, are actually futures and are exchange-traded. Some power and gas markets, such as Nord Pool, trade electricity forwards with clearinghouse support. Per the ontology, both would be classified as futures by definition, but naming blurs the lines.
The primary distinctions between futures and forwards are (1) forwards are bilateral and privately negotiated, (2) forwards are over-the-counter instruments rather than exchange traded, (3) forwards are fully customizable whereas futures are typically standardized, (4) the risk associated with a forward is assumed by the counterparties whereas it is mitigated via central clearing for futures, and (5) there is typically no margin requirement for a forward whereas futures require margin posting.
Since forward contracts are not exchange traded, there is no mark-to-market requirement, which allows a buyer to avoid almost all capital outflow initially (though some counterparties might set collateral requirements). The forward price makes the forward contract have no value when the contract is written. However, if the value of the underlying commodity changes, the value of the forward contract becomes positive or negative, depending on the position held. Forwards are priced in a manner similar to futures. Like in the case of a futures contract, the first step in pricing a forward is to add the spot price to the cost of carry (interest forgone, convenience yield, storage costs and interest/dividend received on the underlying). Unlike a futures contract though, the price may also include a premium for counterparty credit risk, and the fact that there is not daily marking to market process to minimize default risk. If there is no allowance for these credit risks, then the forward price will equal the futures price.
forward contract
specifies the agreement that a beneficiary is named in
credit card agreement for a card issued to, or in conjunction with, a formal organization, such as a small business, middle market business, local, state, or national government, or large corporation
Corporate card programs come in more than one form to serve different business needs. In general, they are contractual agreements between a sponsoring entity and a financial institution, in which the financial institution issues corporate cards to select employees of the sponsoring company.
pooled investment vehicle in which investors hold units that represent beneficial ownership in a trust-managed portfolio of assets
unit trust
A unit trust is established under a trust deed, with a trustee holding legal title to the assets and a fund manager making investment decisions. They are common in the UK, Australia, Singapore, and other Commonwealth countries.
preferred share that confers exactly one vote per share, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic stated income, dividends not paid in any year accumulate, and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, voting, redeemable extendable, cumulative participating, registered share
common share that confers exactly 0 votes per share, is unrestricted from a sales perspective, is fully paid and is registered
common, non-voting, unrestricted, fully-paid, registered share
role of an individual or organization that is a member of an alliance set up to pool resources and share risk with respect to a large transaction
syndicate member
syndicate participant
participating member
preferred share that confers multiple votes per share, may be exchanged for securities of another issuer, provides a periodic stated income, dividends not paid in any year accumulate, and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, enhanced voting, exchangeable, cumulative participating, registered share
preferred share that confers multiple votes per share, may be exchanged for securities of another issuer, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic stated income and dividends not paid in any year accumulate, and is registered
preferred, enhanced voting, redeemable/exchangeable/extendable, cumulative, registered share
document that provides a structured description of something, prepared on ad hoc, periodic, recurring, regular, or as required basis
Reports may refer to specific periods, events, occurrences, or subjects, and may be communicated or presented in oral, electronic, or written form.
action initiated by the board of directors of a corporation that affects all shareholders
Examples of mandatory corporate actions include cash dividends, stock splits, mergers, pre-refunding, return of capital, bonus issue, asset ID change, and spin-offs.
mandatory corporate action
Mandatory means mandatory participation by all shareholders, however the shareholder is not required to do anything.
relates a contract to something for which the contract defines legally binding terms and conditions
specific initiative, activity, or investment aimed at improving environmental sustainability, reducing ecological harm, or addressing environmental challenges
Such projects are designed to align with environmental goals, such as mitigating climate change, conserving natural resources, protecting biodiversity, and promoting a circular economy.
Key characteristics of an environmental or sustainability project include achieving measurable positive environmental outcomes, and aligning with broader sustainability goals, such as those outlined in international frameworks (e.g., the United Nations Sustainable Development Goals (SDGs), Paris Agreement).
legal entity that is formed between parties that pool their resources for the purpose of accomplishing a specific task but otherwise retain their distinct identities
In a joint venture, each of the participants is responsible for profits, losses, and costs associated with it. However, the venture is its own entity, separate from the participants' other business interests.
any individual who is licensed to perform a legally binding function, and who has been legally empowered to act on behalf of another party
Insurance agents, realtors, financial advisors, certain attorneys, and brokers are examples of legal agents.
global depositary receipt that represents the purchase, or ownership, of foreign assets which are deposited in a Indian account managed by the Domestic Depository in India
Indian depositary receipt
IDR
An Indian Depository Receipt (IDR) is an instrument denominated in Indian Rupees in the form of a depositary receipt created by a Domestic Depository (custodian of securities registered with the Securities and Exchange Board of India) against the underlying securities of issuing company to enable foreign companies to raise funds from the Indian securities Markets.
party providing a report, typically in response to some contractual, legal, regulatory or other business requirement
party that is indirectly involved in, but not a counterparty to, an agreement
indicates a party that holds shares in the issuer
floating leg in which variable interest is paid on some notional amount, linked to some underlying interest reference rate
Instead of an absolute rate you have either a variable reference rate or fixed reference rate and an offset that varies in some way, called a spread (same as margin in floating rate notes).
identifier supplied by a commercial entity
exchange rate quoted at a specific point in time, for a given block amount of currency as quoted against another (base) currency
An exchange rate of R represents a rate of R units of the quoted currency to 1 unit of the base currency.
amount of money, goods, or services requested, expected, required, or given in exchange for something else
tradeable debt instrument that provides a return in the form of fixed periodic payments and typically the return of principal at maturity
Fixed income securities provide payments according to a regular schedule. This does not necessarily mean that the payments themselves are of a fixed amount, however.
corporate officer that has overarching responsibility for the relationship with a specific borrower or account
preferred, enhanced voting, redeemable exchangeable, auction rate income, registered share
expression of interest in providing something to someone that is contingent upon acceptance, forbearance, or some other consideration, as might be desired by an offeree(s)
The making of an offer is the first of three steps in the traditional process of forming a valid contract: an offer, an acceptance of the offer, and an exchange of consideration. (Consideration is the act of doing something or promising to do something that a person is not legally required to do, or the forbearance or the promise to forbear from doing something that he or she has the legal right to do.)
An offering may or may not be considered a 'state of affairs' or situation, depending on the circumstances. In some cases such as a prospectus or other offering in the context of financial services, an offering may also be classified as a situation. Users may choose to model an individual offering as both an offering and situation, depending on the circumstances, in other words.
lifecycle stage indicating the status of a given registration of something, such as a business or legal entity, as specified by the registration authority
There may be other possible values for registration status, depending on the registry, thus the individuals provided herein are not intended to be exhaustive.
act of finalizing a transaction, including but not limited to finalizing accounting, exchanging consideration, and/or legally recording documents, as applicable
settlement
preferred share that confers multiple votes per share, may be redeemed at the option of the issuer and/or of the shareholder with an extendable redemption date, provides a periodic stated income, dividends not paid in any year accumulate, and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, enhanced voting, extendable, cumulative participating, registered share
relates an account to a client or customer that is considered the primary owner of the account
Note that for many financial institutions, there must be a client or customer designated as the primary owner. In cases where there is a tax identifier associated with the account, it is that of the primary owner.
the capacity to enter into legally binding contracts
This is the capacity which defines Contractually Capable Entity (sometimes labeled as 'Legal Entity') as distinct from 'Legal Person'. In the latter case the liabilities incurred in the contract accrue also to the Legal Person. In the case of contractual capability, the entity has the authority to enter into contracts, whether or not the liabilities accrue to that same entity (which they do if it is also a Legal Person). For Legal Entities which are not Legal Persons, the liability unwinds to some legal person within the structure of the entity, for example a General Partner or a Trustee.
contractual capability
preferred share that confers multiple votes per share, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic income whose dividend rate is set periodically, and is registered
preferred, enhanced voting, redeemable extendable, adjustable income, registered share
kind of event that occurs during one or more stages of a product lifecycle
measure of exchange rate fluctuation based on a range of past actual values for exchange rates
an economic indicator representing a measure of the change over time in the prices of a fixed-basket of domestic producer goods and services
Note that Canada does not produce a high level, cross industry PPI per se. Canadian PPIs are published by industry sector. Three of the most important are captured in the union defined herein, which may be expanded over time to integrate others, as needed.
preferred share that confers multiple votes per share, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic stated income and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, enhanced voting, redeemable extendable, participating, registered share
upper tranche boundary of a tranche defined as a percentage of the value of the total pool of collateral, either at issuance or as of some point in time
detachment point
The CDO tranche loss arises when the cumulative collateral loss exceeds the tranche's attachment point. The detachment point corresponds to the amount of pool losses that will completely wipe out the respective tranche. The detachment point is the maximum of pool-level losses at which a given tranche becomes liable for losses.
contract terms that, grouped together, that are generally and consistently reused across many contracts, published by some organization, and capable of being incorporated into a contract by reference
Each exchange has a set of terms they apply to membership agreements and with respect to the instruments that may be traded on that exchange. For example, there is a set expiration date that exchanges will publish for exchange-traded options - in the US it is the Saturday following the third Friday of every month. Similarly, there are set incremental dates for strike for exchange traded options. Contract sizes are also stipulated, for example in the US these are standardized by the OPRA Convention (Options Pricing Reporting Authority).
share in a security that signifies ownership in an entity that is not publicly traded
privately held share
Privately owned companies include family-owned businesses, sole proprietorships and the vast majority of small and medium-sized businesses. These companies are often too small for an initial public offering (IPO) due, for example to a small market capitalization and/or low trading volume, and fulfill their financing requirements in other ways, including through smaller offerings.
foreign-exchange contract for immediate delivery
currency spot contract
Spot rates represent the price that a buyer expects to pay for a foreign currency in another currency at the time of the quote. Though the spot exchange rate is said to be settled immediately, the globally accepted settlement cycle for foreign-exchange contracts is two days. Foreign-exchange contracts are therefore settled on the second day after the day the deal is made.
foreign exchange spot contract
specifies the final date in a range of dates by which the underlying asset (or some portion thereof) must be delivered in order for the terms of the contract to be fulfilled
has last delivery date
financial instrument representing an ownership interest in bulk goods, such as raw materials and primary agricultural products
The value of the contract is derived from the market value of an underlying commodity or commodity index. Commodity derivatives can be physically or cash settled. Primary underliers include metals, agricultural goods and energy.
total return swap whose return leg underlier is based on equities
equity total return swap
card product allowing the holder to purchase goods or services on credit
schedule for delivery of money in fulfillment of an obligation
Examples include coupon payment, loan payment, and interest payment schedules, among others.
benchmark whose constituents are exclusively equity instruments
equity index
edge corporation whose charter allows the corporation to engage in international investment banking
system by which a state or community is controlled
In the Commonwealth of Nations, the word government is also used more narrowly to refer to the collective group of people that exercises executive authority in a state. This usage is analogous to what is called an 'administration' in American English. Furthermore, especially in American English, the concepts of the state and the government may be used synonymously to refer to the person or group of people exercising authority over a politically organized territory.
federally-chartered financial institution that is supervised, examined, and regulated by the Farm Credit Administration and operates in accordance with the Farm Credit Act of 1971, as amended, 12 U.S.C. 2001 et seq
All Farm Credit System institutions are federally-chartered instrumentalities of the United States.
registered agent (person or organization) designated by a business entity, such as a corporation, to receive legal correspondence on behalf of the business entity in the jurisdiction in which the agent's address is located
The person may be an officer of the corporation or a third party, such as the corporation's attorney, or a company providing such agency services.
entitlement to perform certain actions (or not), or to be in certain states (or not); or entitlement that requires others to perform certain actions or be in certain states (or not)
Examples include contractual rights, legal rights, human rights, political rights, and so forth.
Rights dominate modern understandings of what actions are permissible and which institutions are just. Rights structure the form of governments, the content of laws, and the shape of morality as many now see it. To accept a set of rights is to approve a distribution of freedom and authority, and so to endorse a certain view of what may, must, and must not be done. According to the Hohfeldian incidents (Wesley Hohfeld (1879-1918)), rights are complex and consist of four major components: privilege, claim, power, and immunity.
the extent to which an individual or organization is open to risk of suffering a loss in a transaction, or with respect to some investment or set of investments, e.g., some holding; the amount one stands to lose in that transaction or investment
Examples in banking include the total amount of unsecured loans, the amount of loans advanced to a single borrower, group, industry, or country, and the probability of loss from devaluation, revaluation, or foreign exchange fluctuations.
specifies the original starting date for the time series for a given economic indicator
swap leg that has an interest rate payment stream, including both a parametric and cashflow representation for the stream of payments
preferred share that confers less than one vote per share, may be exchanged for securities of another issuer, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic stated income and dividends not paid in any year accumulate, and is registered
preferred, restricted voting, redeemable exchangeable, cumulative, registered share
identifies the trading facility on which the security is traded
preferred share that confers multiple votes per share, may be redeemed at the option of the issuer and/or of the shareholder, provides the same dividends as common/ordinary shareholders, and is registered
preferred, enhanced voting, redeemable, normal income, registered share
economic indicator representing the ratio of the unemployed population with respect to the civilian labor force of a given economy for some specified period
Persons are classified as unemployed if they do not have a job, have actively looked for work in the prior 4 weeks, and are currently available for work. Workers expecting to be recalled from layoff are counted as unemployed, whether or not they have engaged in a specific jobseeking activity. In all other cases, the individual must have been engaged in at least one active job search activity in the 4 weeks preceding the interview and be available for work (except for temporary illness).
reference index that is a function of credit events that change the value of an underlying portfolio
credit index
Such an index does not necessarily reference a static portfolio, as there may be provisions for replacing defaulted securities on which the index depends.
denotes an rdfs:range relationship between concepts
has in range
schedule and communications tool used to manage meetings, plan events, and coordinate activities within and/or across organizations
academic calendar, bank holiday calendar
a relationship between a right or obligation and the vehicle, such as an agreement or contract, that vests (or confers) said right or obligation
This property should be read as describing some legal power or duty, some commitment or some social construct being conferred as a result of some social construct such as an agreement or some legal authority. These concepts, which would describe the kind of thing of which this is a property, and the kinds of thing in terms of which this property is framed, are outside the scope of this model and so are not shown.
basket of credit facilities whose constituents are extensible, allowing companies to borrow an additional term loan or revolving credit facility (or increase the commitments applicable thereto) under the same credit agreement subject to certain parameters
incremental facility debt basket
The incremental debt basket is available to borrowers and guarantors only; it cannot be used by non-guarantor entities to raise indebtedness. The size of the incremental debt basket varies depending on the size and creditworthiness of the credit group. The principle of a basket consists of allowing the borrower, up to a maximum determined amount, to make restricted payments, disposals or investments, or take on incremental debt. Commonly, a basket is expressed as subject to restrictions based on a fixed ('hard cap') amount (e.g., may not exceed EUR 5,000,000).
builder basket
variable interest rate that is based on a specific index or benchmark rate
Certain revolving credit, such as credit-card related debt, may adjust after a specified period of time to an absolute rate stated in the agreement (variable but not floating) rather than based on a benchmark rate (variable, floating).
The index used to determine the specific interest rate is generally included in the terms of the loan. In most cases, lenders will also charge a spread, or added percentage points on top of the established index rate. If a loan is billed as prime plus 2.5 percent, for a prime rate of 3.5 percent, the terms of the loan will require the borrower to pay off a 6 percent interest. Floating interest rates typically involve periodic reset dates for the loan, particularly when the index rate changes. Resets may also occur online at market predetermined intervals, with yearly adjustments being a common arrangement.
specific event involving the finalization a transaction or portion thereof, including but not limited to finalizing accounting, exchanging consideration, and/or legally recording documents, as applicable
settlement event
specification for the value for something discernible and for which evidence can be obtained
Derivatives, such as certain exotics, can be based on values ascribed to virtually anything, including weather. Typically, however, an observable value refers to something that can be readily observed in the marketplace, such as a quoted rate (e.g., interest rate, exchange rate), index value, commodity price, stock price, economic indicator, or something similar as of some point in time.
common share that confers exactly one vote per share, is unrestricted from a sales perspective, is partially paid and is registered
common, voting, unrestricted, partly paid, registered share
negotiable commodity that is obtained via some agricultural process, including forestry, fishing, livestock, grain, dairy, corn, cocoa, soybeans, sugar, coffee
agricultural resource
investment fund that has a fixed number of shares offered by an investment company through an initial public offering
closed-end investment
closed-end fund
delivery address that uses the words 'GENERAL DELIVERY', uppercase preferred, spelled out (no abbreviation), in place of a street address
The value of the +4 component of a ZIP+4 code should be '9999'.
registrar that is authorized by the Global LEI Foundation to issue legal entity identifiers
LOUs supply registration, renewal and other services, and act as the primary interface for legal entities wishing to obtain an LEI.
the North American Industry Classification System (NAICS) code representing an industry
North American Industry Classification System code
constituent of a basket of credit risks
credit index constituent
short-term negotiable financial instrument consisting of an order in writing addressed by one person (the seller of goods) to another (the buyer), requiring the latter to pay a fixed amount of money on demand (a sight draft) or on a predetermined date (a time draft)
bill of exchange
A bill of exchange is a written agreement between two parties - the buyer and the seller - used primarily in international trade. The buyer or seller typically employs a bank to issue the bill of exchange due to the risks involved with international transactions. Bills of exchange can be transferred by endorsement, much like a check. They can also require the buyer to pay a third party - a bank - in the event that the buyer fails to make good on his agreement with the seller.
bank draft
draft
agency of a foreign bank established and operating under the laws of any state, where state means any State of the United States or the District of Columbia
state agency of foreign banking organization
state of affairs and unique and temporary organization, designed to deliver a tangible output
A project has a fixed - generally fairly short - timeframe, and a project manager is responsible for delivering the output on time and on budget.
denotes an rdfs:domain relationship between concepts
has in domain
obligation to pay something, such as an amount of money, good, service, or instrument
In cases where the debtor and payer are the same legal person, then a debt is equivalent to a payment obligation.
certificate that allows disproportionate participation (outperformance) in positive performance above the strike, in which the minimum redemption is equal to the nominal value provided the barrier has not been breached, with greater risk multiple underlying asset(s) (worst-of) allow for a higher bonus level or lower barrier, and reduced risk compared to a direct investment into the underlying asset(s)
If the barrier is breached the product changes into an outperformance certificate.
outperformance bonus certificate
The outperformance bonus certificate combines the strengths of both outperformance and normal bonus certificates. This means that you’re protected on the downside by a bonus level (i.e., a feature of bonus certificates) but nevertheless have the opportunity to participate disproportionately in upside gains in the underlying instrument (the 'outperformance certificate' dimension). If you compare all three structured product types with each other, you’ll see that outperformance bonus certificates come up a bit short in terms of the characteristics of the other two forms. In other words, the disproportionate participation rate (outperformance) is usually somewhat lower than with a 'plain vanilla' outperformance certificate. This is because additional bonus protection has to be bought in order to structure the product properly. The same applies to the bonus dimension: because such a certificate still affords disproportionate participation, its downside protection level is more modest.
indicates post condition or other product of some activity, process, system, report, analysis, etc.
netting provision that specifies the way in which on a given payment date, each party will aggregate the amounts of a currency to be delivered by it, and only the difference in the aggregate amounts will be delivered by the party with the larger aggregate obligation
settlement netting provision
corporation chartered by a state to engage in international banking, so named because the corporation enters into an 'agreement' with the Fed's Board of Governors that it will limit its activities to those permitted
material that, when freshly prepared, polished, or fractured, shows a lustrous appearance, and conducts electricity and heat relatively well
Examples include precious or industrial metal, such as aluminium, copper, gold, lead, nickel, platinum, silver, tin, zinc.
metal
specifies the medium of exchange value in which something, such as a monetary amount is denominated
measurable target that indicates how an individual or business is performing in terms of meeting its goals
Examples include profits, sales numbers, employee turnover and average annual expenses.
Key Performance Indicators (KPIs) are the critical (key) quantifiable indicators of progress toward an intended result. KPIs provide a focus for strategic and operational improvement, create an analytical basis for decision making and help focus attention on what matters most. Managing with the use of KPIs includes setting targets (the desired level of performance) and tracking progress against those targets.
Although they are both designed to measure performance, KPIs and metrics have different characteristics and are used by businesses in different ways. Metrics are measures used to track progress and evaluate success, while KPIs are metrics tied to specific goals during a certain period of time. KPIs are designed to align with business goals and targets, while metrics evaluate the performance of particular processes.
standing of something at a particular time, indicated by at least one scores with respect to some scale, based on an assessment by some party
relates a lifecycle to something it characterizes
indicates the context of employment in which someone is employed
account that provides a record of deposits of funds and/or securities held at a financial institution
The typical objectives of an investment account are to achieve long term growth, income or capital preservation from the deposited asset portfolio. Investment accounts are typically not insured.
quantified share of beneficial interest in a pooled fund, representing a proportional claim on the fund's assets, income, or entitlements
Fund units are allocated to a participant, investor, or beneficiary according to the fund's governing structure.
A fund unit may be tradable or non-tradable depending on the legal form, regulatory status, and operational framework of the fund.
preferred share that confers exactly one vote per share, may be exchanged for securities of another issuer, provides a periodic income whose dividend rate is adjusted through an auction, and is registered
preferred, voting, exchangeable, auction rate income, registered share
commitment to deliver the actual underlying asset on the specified delivery date, rather than cash
physical settlement terms
If you sell a gold futures contract of say 100 troy ounces then you have to deliver real gold to the buyer on the mutually agreed date. Most derivatives are not actually exercised, but are traded out before their delivery date. However, physical delivery still occurs with some trades: it is most common with commodities, but can also occur with other financial instruments.
party that does both of the following: (1) solicits or accepts orders to buy or sell futures contracts, options on futures, retail off-exchange forex contracts, or swaps and (2) accepts money or other assets from customers to support such orders
identifies the location where an individual was born
preferred share that gives the issuer the right to redeem the stock under specified conditions
relates an instrumentality of some government to the government that it supports
nature of the proof of ownership of a security
Securities are typically issued in one of two forms, registered or bearer. Most securities issued today are in registered form, which enables the issuing firm or registrar to keep records of a security's owner and mail them any dividend, coupon, or other payments. Registered securities may be issued in book entry (digital only) or certificate (physical) form, but most today are entirely digital.
any office or any place of business of a foreign bank located in any State of the United States at which deposits are received, established and operating under the laws of that State that is insured and regulated by the Federal Deposit Insurance Corporation (FDIC)
insured state branch of foreign banking organization
state-level securities regulation, designed to protect investors against securities fraud that require issuers to be registered and to disclose details of their offerings
This allows investors to base their judgments on trustworthy data.
Blue sky law is modeled as a class, rather than as a named individual, because there are numerous state-specific laws that qualify as blue sky laws that could be added to support state-specific definitions and other analyses.
address component that identifies an individual unit within a larger structure, such as an apartment, office, hangar, slip, mailbox, and so forth, at a given street address
index to a location to which communications may be delivered
address
issues a license required in order to perform some task, provide some service, exercise some privilege, or pursue some line of business or occupation to some party
asset-backed security based on home equity loan receivables
home equity loan asset-backed security
If the credit risk of the pool has been decoupled from the institution via an SPV, then home equity asset-backed securities are also structured finance instruments.
Similar to mortgages, home equity loans are often taken out by borrowers who have less-than-stellar credit scores or few assets - the reason why they didn’t qualify for a mortgage. These are amortizing loans - that is, payment goes toward satisfying a specific sum and consists of three categories: interest, principal, and prepayments.
entry in the Credit Institution Register, a repository of credit institutions collected by the European Banking Authority (EBA) as provided by the various national banking authorities for those institutions that qualify
common share that confers multiple votes per share, is not restricted from a sales / transfer perspective, is partially paid and is registered
common, enhanced voting, unrestricted, partly paid, registered share
links a price to something it provides a value for
privately organized alternative trading system, that allows institutional investors the ability to trade without exposure until after the trade has been executed and reported
bond whose income may vary over time, because either the coupon rate or principal amount is related to a specific index, such as the Consumer Price Index
a record describing relationships between legal entities
specifies a period of time in months after origination during which the interest rate cannot change
This normally applies to a variable rate loan. It may also apply to step up/step down loans that are fixed rate but whose rate changes after a pre-determined number of months.
preferred share that confers exactly one vote per share, may be redeemed at the option of the issuer and/or of the shareholder with an extendable redemption date, provides a periodic stated income, dividends not paid in any year accumulate, and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, voting, extendable, cumulative participating, registered share
target value for a key performance indicator as of a specific date and time
target indicator value
formal definition of the structure and application of a particular set of financial instrument identifiers
financial instrument identification scheme
preferred share that confers less than one vote per share, has no fixed maturity date, provides a periodic stated income and dividends not paid in any year accumulate, and is registered
preferred, restricted voting, perpetual, cumulative, registered share
capital-protected product whose protection is defined as a percentage of the nominal amount (e.g. 100 percent), with minimum redemption at expiry equivalent to the capital protection
Note that capital protection in this case refers to the nominal amount only, and not to the purchase price. The value of the product may fall below its capital protection value during its lifetime, and participation is in the underlying price increase above the strike.
capital protection certificate with participation
indicates the window of time during which an extension is allowed under the terms of the contract
highway contract route associated with an address
preferred share that confers less than one vote per share, may be exchanged for securities of another issuer, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic income whose dividend rate is set periodically, and is registered
preferred, restricted voting, redeemable/exchangeable/extendable, adjustable income, registered share
indicates the date on which the first trade of a newly issued security is settled
private limited company whose shareholders' liability is limited to the capital they originally invested
Private limited companies are common in countries including the U.K., Ireland, and Canada. They have one or more members, also called shareholders or owners, who buy in through private sales. Directors are company employees who keep up with all administrative tasks and tax filings but do not need to be shareholders.
perceived worth of something, such as a product, service, or asset to a company, customer, or stakeholder
The concept of business value encompasses several dimensions, including: - Customer Value: The benefits that a customer derives from a product or service, measured against the cost of obtaining it. This includes factors like quality, performance, convenience, and price. - Economic Value: The financial benefits that a company gains from its assets, investments, or operations. This can be calculated through metrics like revenue, profit, return on investment (ROI), and cost savings. - Market Value: The price at which an asset or company can be bought or sold in the open market. This reflects the collective assessment of investors and market participants. - Shareholder Value: The financial returns that shareholders receive from owning a company's stock, including dividends and capital gains. - Brand Value: The premium that customers are willing to pay for a product or service due to the brand's reputation, recognition, and loyalty. Overall, value in business is about creating and capturing benefits that meet the needs and expectations of various stakeholders, from customers to investors.
debt instrument price that includes accrued interest
dirty price
an identifier associated with a regulation
party that directly or indirectly advises others as to the value or advisability of buying or selling futures contracts or options
Indirect advice includes exercising trading authority over a customer's account. In the U.S., registered CTAs are registered with the Commodities Futures Trading Commission (CFTC) and are generally required to be members of the National Futures Association (NFA).
indicates the difference between the stated redemption price at maturity and the issue price
party that is capable, in its own right, of owning assets, incurring liabilities, and engaging in economic activities and in transactions with other parties
There is a hierarchical relationship between institutional units and establishments. An institutional unit contains one or more entire establishment(s); an establishment belongs to one and only one institutional unit. There are two main types of units in the real world that may qualify as institutional units, namely persons or groups of persons in the form of households, and legal or social entities.
corporate action that is a public offer where, due to a limited amount of securities available, priority is given to existing shareholders
priority issue
schedule of periodic payments (repayment installments) that specify changes in the balance of the debt over time
Payments are divided into equal amounts for the duration of the loan or debt instrument, making it the simplest repayment model. A greater amount of the payment is applied to interest at the beginning of the amortization schedule, while more money is applied to principal at the end.
automated system for organizing and disseminating price quotes by brokers and dealer firms that facilitates electronic trading in securities
The National Association of Securities Dealers Automatic Quotation (Nasdaq), Nasdaq SmallCap Market, and the Over-The-Counter Bulletin Board (OTCBB) exchange platforms are integrated into one IQS. By using this integrated system, investors have access to a wide range of securities, ranging from large blue-chip companies to smaller micro-caps.
In the United States, an IQS is an automated interdealer quotation system of a national securities association registered pursuant to section 15A(a) of the Exchange Act (15 U.S.C. 78o-3(a)).
An IQS ties the price quotations of a number of exchanges together into one platform. This allows investors to more easily access security price quotations that would otherwise need to be monitored on several separate exchanges.
person or organization over which some party exercises some form of authority or influence with respect to some situation
high-level approach that guides decision-making and the coordination of actions and plans in pursuit of some aim
A strategy is a high-level plan or approach designed to achieve a long-term goal or outcome, often by choosing among different possible methods or courses of action. A strategy may involve activities that are needed in order to achieve specific goals or objectives. It may take into account one or more policies or any number of restrictions and constraints. Strategies are typically distinguished by long-term orientation, adaptive planning, and broad scope.
floating leg of a dispersion swap that pays an amount based on the realized dispersion of the price changes of the underlying product
dispersion leg
Underlying assets may include, for example, exchange rates, interest rates, or the price of an index.
variance leg
agricultural resource derived from the flesh of an animal (especially a mammal), such as pork bellies
meat commodity
links an account statement to the individual transactions it documents
rate at which one currency can be exchanged for another
The exchange rate between the U.S. dollar and British pound is distinct from the exchange rate between the U.S. dollar and the euro.
ownership interest in the equity of a company, represented by shares that confer financial rights and governance privileges
Shareholding refers to the total ownership a party has in some organization, and determines voting power, dividend entitlement, and exposure to risk.
preferred share that confers zero votes per share, has no fixed maturity date, provides a periodic stated income, dividends not paid in any year accumulate, and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, non-voting, perpetual, cumulative participating, registered share
card verification value specifically for Visa payment cards
ratio of the total amount of debt that is secured by the asset(s) and the appraised value of the asset(s) securing the financing
This is particularly important for secondary loans, or for refinancing that combines outstanding loans against a given asset. Lenders use this ratio to evaluate the risk of extending a loan to a borrower(s) in cases where multiple loans are involved.
subscription right entitling existing holders of multiple securities to subscribe to new securities at a price normally lower than the prevailing market price
combined instruments subscription right
finance company that lends to individuals under the small loans laws of the jurisdiction in which they operate
preferred share that confers zero votes per share, may be exchanged for securities of another issuer, provides the same dividends as common/ordinary shareholders, and is registered
preferred, non-voting, exchangeable, normal income, registered share
administrative body for a geographic area, such as a county, smaller town, or other similar community
A local government will typically only have control over their specific geographical region, and cannot pass or enforce laws that will affect a wider area. Local governments can elect officials, enact taxes, and do many other things that a national government would do, just on a smaller scale.
dividend that provides a specified annual return on the nominal value (and any premium) paid on shares
In other words, the return is not variable depending on whether or not the company makes a profit. Annual dividends are calculated as a percentage of the par value, which is the price of the preferred stock at the time it was issued. Most preferred shares have fixed rate dividends.
preferred share that confers exactly one vote per share, may be exchanged for securities of another issuer, provides a periodic income whose dividend rate is set periodically, and is registered
preferred, voting, exchangeable, adjustable income, registered share
designation by which someone is known in some context
explicit date, i.e., the day, month and year, on which an individual died
actual execution of some computation, computational process, or operation that was scheduled or triggered by something
address identifying a virtual, i.e. non-physical, location
event in which some party asks another party for something at some point in time
scheme that defines the registration identifier per the issuing registration authority
an explicit period of time prior to a call date during which an issuer or agent must give notice to holders
repayment schedule whereby a given percentage of a bond issue is redeemed on predefined dates
structure of a fund with respect to its legal formation in some jurisdiction
legal fund structure
relates an organization to another recognized as its ultimate parent, within its country or jurisdiction of incorporation, if it has one
In the case of companies that are subsidiaries of another company that itself has a parent, this identifies the organization at the top of the hierarchy of organizations in the country of registration. Adapted from consensus definition of Ultimate Parent, now that this is split into national and global parent.
consensus definition of ultimate parent, with the split between domestic and global parent
requirement for one party to formally inform another party (or parties) about specific events, actions, or changes as outlined in the agreement
notification obligation
Common triggering events include breaches, changes in circumstances, delays, or other kinds of events that may have a material impact on the agreement.
not-for-profit objective that reflects the religious goals of an organization
arrangement that compares the cyclical nature of families, organizations, processes, products, marketing, and order management, portfolio management or other systems with the cradle to grave life stages (birth, growth, maturity, decay, and death) of living organisms
indicates a controlling party that is responsible for the management of daily business operations
specifies the schedule for fulfillment of an obligation
preferred share that confers multiple votes per share, may be exchanged for securities of another issuer, provides a periodic income whose dividend rate is set periodically, and is registered
preferred, enhanced voting, exchangeable, adjustable income, registered share
statistical measure of the dispersion around the average of some random variable over some period of time
terms for payment of interest on a bond with a fixed interest rate
relates an organization to another recognized as its ultimate parent, if it has one
In the case of companies that are subsidiaries of another company that itself has a parent, this identifies the organization at the top of the hierarchy, world-wide. Adapted from consensus definition of Ultimate Parent, now that this is split into national and global parent.
highest price for a given security over the period specified
high price
variable income bond whose principal is indexed to inflation or deflation and thus changes over the life of the security
Treasury Inflation-Protected Securities, or TIPS, provide protection against inflation. The principal of a TIPS increases with inflation and decreases with deflation, as measured by the Consumer Price Index. When a TIPS matures, you are paid the adjusted principal or original principal, whichever is greater.
schedule consisting of some number of individual events that are not necessarily recurring
Other ontologies can extend AdHocSchedule and/or AdHocScheduleEntry as needed to relate the date to something. In particular, the Occurrences ontology extends AdHocScheduleEntry to associate an OccurrenceKind with each entry. The intended meaning is that an Occurrence of the OccurrenceKind happens on the corresponding Date.
specifies a predetermined price at which the holder commits to buy or sell an underlying asset
has exercise price
has strike price
economic indicator representing a measure of changes over time in the prices of a fixed basket of consumer goods and services that Canadian private households consume
investor that is a person, rather than an organization, who may or may not be considered a qualified investor from a legal perspective
performance-based leg wherein the payment is netted at maturity rather than periodically
In this case there is a single payment at maturity/settlement and so there is no stream of cashflows either way. The other leg of these swaps is implied, and is simply the strike price.
indicates the date that the transaction was posted to the account
party that provides and services an account
qualified measure of some aspect of the behavior of one or more debt instrument(s) that may vary over time
debt pool statistical measure
credit default swap that references a bespoke, synthetic portfolio of underlying assets whose components have been agreed to for a specific OTC derivative by the parties to the transaction
basket credit default swap
preferred share that confers zero votes per share, has no fixed maturity date, provides a periodic income whose dividend rate is set periodically, and is registered
preferred, non-voting, perpetual, adjustable income, registered share
relates something to something else on which it rests, or that supports it in some way
action carried out by or specifically relating to a legal entity that may affect the securities it issues and may have a material impact on its stakeholders, such as shareholders and creditors
Examples of corporate actions include share issues, stock splits, consolidation, dividends, mergers and acquisitions, rights issues, spin-offs, and the inception of court actions.
corporate action
Corporate actions are typically approved by a company's board of directors and authorized by the shareholders.
indicates the purchasing party in the context of a sales transaction
has buyer
indicates area, sector, or development within a geographic area relevant to a delivery address
preferred share that confers multiple votes per share, has no fixed maturity date, provides a periodic income whose dividend rate is adjusted through an auction, and is registered
preferred, enhanced voting, perpetual, auction rate income, registered share
realization of an event in a stage of a lifecycle
participation certificate whose payout is conditional: should the underlying asset close below the strike on expiry, the underlying asset(s) and/ or a cash amount is redeemed; should the underlying asset close above the strike at expiry, the nominal amount plus the coupon is paid at redemption
Note that in the case of a reverse convertible certificate, the coupon is paid regardless of the underlying development. It has reduced risk compared to a direct investment into the underlying asset. With higher risk levels, multiple underlying assets (worst-of) allow for higher coupons; limited profit potential (Cap).
reverse convertible certificate
length of time that something or someone has been alive or existed
individual or small group of persons who occupy a housing unit (such as a house or apartment) as their usual place of residence, who pool some, or all, of their income and wealth and who consume certain types of goods and services collectively, mainly housing and food
A household may be either (a) a one-person household, that is to say, a person who makes provision for his or her own food or other essentials for living without combining with any other person to form part of a multi-person household or (b) a multi-person household, that is to say, a group of two or more persons living together who make common provision for food or other essentials for living. The persons in the group may pool their incomes and may, to a greater or lesser extent, have a common budget; they may be related or unrelated persons or constitute a combination of persons both related and unrelated. A household may be located in a housing unit or in a set of collective living quarters such as a boarding house, a hotel or a camp, or may comprise the administrative personnel in an institution. The household may also be homeless.
From the perspective of the U.S Census Bureau, a household includes the related family members and all the unrelated people, if any, such as lodgers, foster children, wards, or employees who share the housing unit. A person living alone in a housing unit, or a group of unrelated people sharing a housing unit such as partners or roomers, is also counted as a household. The count of households excludes group quarters [such as institutional facilities]. There are two major categories of households, 'family' and 'nonfamily'.
actual occurrence of an event during a specific stage of a specific contract lifecycle
contract between named parties that outlines the terms and conditions designed to apply to a number of accounts, transactions, or other activities between the parties, and that consolidates and provides overarching terms for separate but related agreements
A master services agreement governs the terms between a service provider and client. Typically, clients will use Statements of Work that point back to the master agreement so they don't have to recreate a new contract with new terms each time there is a new project, or to cover common terms across services, warranties, and deliveries.
Some credit facilities and many brokerage arrangements are master agreements.
A master agreement can be used to set out standard terms and conditions so that any new agreements don't need to cover the same information again.
party to a swap and therefore a legal party to the contract that embodies that transaction
specifies the initial price at which the holder may sell the bond to the issuer prior to maturity
preferred share that confers multiple votes per share, may be exchanged for securities of another issuer, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic stated income and dividends not paid in any year accumulate, and is registered
preferred, enhanced voting, redeemable exchangeable, cumulative, registered share
financial objective used by an investor to determine whether or not a given potential investment is appropriate for themselves or on behalf of another party
An investor whose objective is capital growth might choose to invest in more aggressive, growth-oriented mutual funds and/or stocks, over income-generating mutual funds and/or bonds.
The combination of investment objectives and risk tolerance are typically used to identify appropriate investment options.
indicates the initial date on which the holder may sell the bond to the issuer prior to maturity
relates a credit agreement, loan, or commitment to any history of payments that have been made by the borrower up to the point that payment history is requested
party that owns shares in and has rights and responsibilities with respect to some asset, provided in exchange for investment
The shares represent an ownership interest in a corporation, mutual fund, or partnership, or a unit of ownership in a structured product, such as a real estate investment trust.
stockholder
floating leg of a dividend swap
dividend leg
Note that both dividend swaps and some statistical swaps can be based on a dividend stream/leg.
specifies an electronic messaging endpoint at which some entity may be located or contacted or may receive correspondence
branch that resides outside of the United States, but has a parent that is located in the United States
account-specific credit facility that specifies the terms and conditions under which the credit card is offered to the cardholder by the issuer
address component that includes a specific route, box, apartment, condominium or other indicator or unit associated with a specific address
links the value of a debt, excluding any interest or other costs of using credit, to the debt that it applies to
agreement corporation whose charter allows the corporation to engage in international banking
common share that confers multiple votes per share, is restricted from a sales / transfer perspective, is partially paid and is registered
common, enhanced voting, restricted, partly paid, registered share
formal definition of the structure and application of a particular set of securities identifiers
information action that provides details of name changes for a legal entity
Name changes may include legal name changes as well as 'doing business as', and other operational names for an organization.
organization name change
unique identifier for record of transactions
indicates the party to which something is reported
transaction between two or more parties involving the exchange of commonly defined financial products
ISO 23897:2020, Financial services - Unique transaction identifier (UTI), clause 3.3
identifies the representation or tangible form of something in some context
preferred share that confers exactly one vote per share, may be redeemed at the option of the issuer and/or of the shareholder with an extendable redemption date, provides the same dividends as common/ordinary shareholders, and is registered
preferred, voting, extendable, normal income, registered share
contractual product that is finalized through specification of values for parameters defined in a template
preferred share that confers multiple votes per share, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic income whose dividend rate is adjusted through an auction, and is registered
preferred, enhanced voting, redeemable extendable, auction rate income, registered share
preferred share that confers multiple votes per share, may be exchanged for securities of another issuer, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic stated income and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, enhanced voting, redeemable/exchangeable/extendable, participating, registered share
privileges allotted to existing security holders, entitling them to subscribe to new securities at a price normally lower than the prevailing market price
subscription right
A subscription rights issue increases the number of shares in the market, thus leading to a dilution in each share's value.
preemptive right
anti-dilution right
subscription privilege
post office box associated with an address
Post office box identifiers are only unique to a given jurisdiction, which may be a post office, town, or other region.
asset-backed security that is backed by an underlying pool of auto-related loans and/or leases
auto asset-backed security
If the credit risk of the pool has been decoupled from the institution via an SPV, then an auto asset-backed security is also a structured finance instrument.
Auto asset-backed securities (auto ABS) are typically structured finance securities that are collateralized by auto loans or leases, such as those to prime (good credit standing) and subprime (poor credit standing) borrowers. Loans or leases are bundled into pools and transferred to a special-purpose entity (SPE), which, in turn, transfers the pool to a (bankruptcy remote) trust. Payments on the underlying auto loans and leases are pooled in the trust, and the funds are used to pay note investors their respective principal which, in turn, transfers the pool to a (bankruptcy remote) trust, i.e., one that protects the security from bankruptcy. Payments on the underlying auto loans and leases are pooled in the trust, and the funds are used to pay note investors their respective principal and interest when due. Any leftover funds - known as excess spread, or the net interest margin - are paid to the equity holder (usually the issuer, such as an auto finance company).
convention for determining trading dates defined with reference to some trading date calendar published by some trading facility or exchange
Corresponds to several ISDA FpML enumeration entries for determining Calculation Date, but refers to other kinds of trading date defined in those calendars. These include Canadian, Australian and New Zealand dates. Note also that some of these have roll rules included within them for when the date determined by the specification returns a non working day, while others explicitly return a business day and require no date roll rule. At least one is silent on this matter.
reference rate that is the rate of interest charged on short-term loans between banks
Banks borrow and lend money in the interbank market in order to manage liquidity and meet the requirements placed on them. The interest rate charged depends on the availability of money in the market, on prevailing rates and on the specific terms of the contract, such as term length.
metal that is considered to be rare and/or have a high economic value
government and the politicians that that run a subnational territory with powers that may be temporary and reversible, ultimately residing with the central government
generic, nine-digit alpha numeric code which identifies a fungible security, assigned by a national numbering agency under the ISO 6166 standard
any deposit account that is not explicitly considered a transaction account
Non-transaction accounts include: (a) savings deposits ((i) money market deposit accounts (MMDAs) and (ii) other savings deposits) and (b) time deposits ((i) time certificates of deposit and (ii) time deposits, open account).
structured collection whose elements are required to have a date and time
FIBO SKOS Vocabulary
indicates the period in days between each reset date and the commencement of interest accrual for the next period
has interest accrual date offset
party that receives some benefit or advantage or profits from something
indicates the municipality or business center in which in which an exchange, data reporting services provider, or crypto asset services provider operates
agreements that involve or include multiple parties
multilateral agreement
Multilateral agreements are characterized by the participation and commitment of multiple countries or parties to achieve a common objective or address a shared issue.
announced commitment to make a specific distribution of a portion of earnings to shareholders, prorated by class of security
The amount and timing of payment is set by the board of directors, typically quarterly. Dividends may be paid in the form of money, shares, scrip, or on rare occasion, property.
preferred share that confers less than one vote per share, has no fixed maturity date, provides a periodic stated income, and is registered
preferred, restricted voting, perpetual, fixed income, registered share
statistical measure of the rate of change in pricing for a given security or market index
Volatility is modeled here using a structured collection, comprised of a series of individual prices of something (a security, index, etc., typically quoted prices), dates, and the source for those prices for some overall period of time
Volatility can be determined using the standard deviation or variance among prices for the security or market index over some period of time. For a specific security, volatility may measure the amount and frequency in rapid price fluctuation. It is computed as the annualized standard deviation of the percentage change in a security's daily price.
measure of volatility that is a forward-looking metric used to calculate probability
organization owned by and operated for the benefit of those using its services
In agriculture, there are broadly three types of cooperatives: a machinery pool, a manufacturing/marketing cooperative, and a credit union
return swap where the seller agrees to pay the other party the difference in value of some underlying asset multiplied by an agreed-upon notional value should the asset value increase between specified periods of time
For example the parties may enter into a two year agreement where every three months they compare the value of the Barclays Capital Aggregate Bond Index to its value three months previously. If the agreed upon notional was US $10,000,000 and the value increased 0.04%, or 4 basis points (bps), the seller would pay the buyer US $4,000. If, after another three months, the value decreased by 3bps, the buyer would pay the seller US $3,000. As part of the agreement, the buyer may also make an additional payment each period to the seller based on a floating rate index multiplied by the notional value.
total return swap
CFTC Data Dictionary. See https://www.cftc.gov/MarketReports/SwapsReports/DataDictionary/index.htm
In exchange, the other party, the buyer of the credit risk, agrees to pay the difference in value of the specified asset multiplied by the notional value should that value decrease between the same specified periods of time. Total return swaps often appear in asset classes other than the credit asset class; however, for the purpose of the CFTC Swaps Report, all total return swaps are counted only in the credit asset class.
In a total return swap that is index-based, the change in the level of the index will be equal to the returns generated by the change in price of each of the contracts that comprise the index plus a return based upon interest earned on any cash collateral posted upon the purchase of the contracts comprising the index.
group of financial institutions or lenders that collectively agree to provide funding for a large loan to a single borrower
finance syndicate
Syndicates are formed to enable the provision of substantial financing amounts that would be challenging or risky for any one lender to offer alone. The syndicate structure allows lenders to share the loan amount, spreading both the funding and associated risks among multiple participants.
relates a contract, such as a debt instrument or credit agreement, to one or more parties that are incurring the debt
default event that is triggered following any applicable grace period in which a payment obligation is missed
failure to pay
offering memorandum that conforms to Regulation A, Offering Statement, of the Securities Act of 1933
See https://www.sec.gov/about/forms/form1-a.pdf for the actual form detail
warrant without an expiration date, giving the holder the right, but not the obligation, to buy (call warrant) or to sell (put warrant) an underlying asset at a certain strike price
The strike price, in the case of a perpetual warrant, is usually higher than the market value of the underlying asset at the time of issue.
account offered by a broker that allows the investor to deposit funds and place investment orders
The investor owns the assets contained in the brokerage account and must usually claim as income any capital gains incurred.
facility that is any branch, agency, representative office, or commercial lending company subsidiary of a foreign bank in the United States
some obligation which exists and is imposed on some individual
This can also be thought of as an obligation - not in the sense in which an obligation and a right are the converse aspects of one another, but in and of itself, independent of the perspective from which it is considered. Examples include statutory obligations, reporting obligations and so on.
indicates a date on which an option may be exercised as specified in the terms of the contract
has exercise date
facility that provides a mechanism for the reporting of transactions effected otherwise than on an exchange
In the United States, for example, trades by FINRA members in Nasdaq-listed and other exchange-listed securities, as approved by the Securities and Exchange Commission (SEC), executed otherwise than on an exchange may be reported to a FINRA TRF. While each FINRA TRF is affiliated with a registered national securities exchange, each FINRA TRF is a FINRA facility and is subject to FINRA's registration as a national securities association.
loan to one or more individuals for household, family, or other personal expenditures in which the borrower pledges some asset via a security agreement as collateral for the loan, or that is secured via third-party guarantee
secured consumer loan
indicates the party to which something is submitted
schedule of changes in the notional amount on which interest is paid, comprising the regular sequence of step events
financial instrument and bilateral contract that is not listed on an organized exchange
indicates the currency purchased with respect to a currency or related instrument
has buying currency
option with an established profit cap or cap price
capped option
The cap price is equal to the option's strike price plus a cap interval for a call option or the strike price minus a cap interval for a put option. A capped option is automatically exercised when the underlying security closes at or above (for a call) or at or below (for a put) the option's cap price.
option trading strategy in which the investor holds a position in both a call and a put option with different strike prices, but with the same expiration date and underlying asset
strangle
A strangle is a good strategy if you think the underlying security will experience a large price movement in the near future but are unsure of the direction. However, it is profitable mainly if the asset swings sharply in price.
actual payment of principal, interest, fees, or other related amounts towards fulfillment of a debt obligation
individual payment transaction
economic indicator representing a change in prices of goods and services for a specified period, for a given statistical area
Always either includes or excludes: Energy prices; Food prices. ALL inflation rates cite whether or not they exclude energy and food prices. If nothing stated it is assumed they include them.
Inflation rate can be used to define changes, from period-to-period, in wage (wage inflation), house prices or producer inputs/outputs. It can be calculated month-over-month and quarter-over-quarter, as well as year-over-year, or on any periodic basis required by the publisher and its community of interest.
preferred share that confers exactly one vote per share, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic income whose dividend rate is adjusted through an auction, and is registered
preferred, voting, redeemable extendable, auction rate income, registered share
security identification scheme, defining the format and structure of a National Securities Identifying Number (NSIN), published nationally on behalf of a country
generally incorporated into the ISIN scheme as well
preferred share that confers multiple votes per share, may be exchanged for securities of another issuer, provides a periodic stated income and dividends not paid in any year accumulate, and is registered
preferred, enhanced voting, exchangeable, cumulative, registered share
time interval that is consistent between elements of a regular schedule
global depositary receipt that represents ownership in the securities of a non-Chinese company that trades on a public exchange in China
Chinese depositary receipt
CDR
It refers to shares in non-Chinese companies that trade in China the same way that American depositary receipts (ADRs) allow non-U.S. company shares to trade on American exchanges.
code used to denote a metropolitan area where business is conducted
The codes for business centers and municipalities defined herein are largely those identified either as FpML business centers or are locations where there is an exchange, as noted in the ISO 10962 MIC code standard.
indicates the date and time, including time zone, something comes into force
party that makes, offers or contracts to make a sale to an actual or potential buyer
identifies a physical address where an independent party can receive communications, including letters and packages
swap in which the reference (underlier) for at least one leg is an interest rate
preferred share that confers less than one vote per share, may be exchanged for securities of another issuer, whose issuer and/or shareholders have the option to extend the maturity date, that provides the same dividends as common/ordinary shareholders, and is registered
preferred, restricted voting, redeemable/exchangeable/extendable, normal income, registered share
credit agreement in which accrued interest may be periodically repaid or paid at maturity, but principal is paid at maturity
The most common example of a credit agreement repaid at maturity is a bond.
collateral agreement that grants a financial interest in some collateral to a party that is not an owner of that collateral, specifying terms including relative duties and rights, over and above those specified in the primary contract, regarding the disposition of the asset used as collateral
Examples include deeds of trust and uniform commercial code (UCC) agreements.
indicates an actor that has some measure of control over the partnership
formal agreement that establishes a trust, whereby the trustor(s) gives the trustee(s) the responsibility to hold and manage assets for the beneficiary(ies)
A trust agreement typically states the (1) purpose for which the trust was established and fulfillment of which will terminate the trust, (2) details of the assets placed in the trust, (3) powers and limitations of the trustees, their reporting requirements, and other associated provisions, and (4) may also specify the trustees' compensation, if any. A trust agreement involving real estate requires its exact description and the trustor's express, written consent to create the trust to be valid.
agreement that designates a party as a registered agent to represent and act on behalf of another party in some, typically legal, financial, or medical capacity
situation in which some party holds the legal title to something (explicitly or implicitly) and has the right to transfer that title and/or possession
ownership
Ownership is the right to possess, use, sell, donate or give as a gift any asset or property belonging to a person known as the 'owner'. An owner can be either a beneficial owner or a legal owner.
identifies a period of time used in computing a calendar-specified date, such as a calendar week, calendar month, calendar quarter, or calendar year
reassignable identifier of relatively short character string length that is unique within an exchange for a particular financial instrument or listing for that instrument
Every listed security has at least one unique ticker symbol, facilitating the vast array of trade orders that flow through the financial markets every day. However, in some countries this relationship may be indirect, through the listing, rather than direct, as is the case in the United States. In the US, the relationship between a ticker symbol and the listed security is one-to-one. This is not, however, the case in Singapore, where there may be unique ticker symbols for the same security based on the lot size. Some well-known ticker symbols are commonly used by multiple exchanges for the same instrument, such as 'IBM', though exchanges attempt to coordinate to limit duplication.
Ticker symbols are reusable, assigned to a given instrument by an exchange for some period of time.
Contract setting out the terms under which some investor invests in the entity and setting out the rights which are conferred on that investor.
netting provision that specifies the way in which all payments in a single currency owed between parties will be aggregated for each traded currency per value date and within the larger aggregate obligation
payment netting provision
For each value date and for each traded currency, the parties will aggregate and net all payments owed between them to arrive at a single currency obligation for each currency payable between the parties. The parties calculate net payments at some pre-agreed time, typically the day before value date (although it is possible to agree net payments on the value date, depending on the currency and time zone).
formal definition of the structure and application of a ISINs as defined in ISO 6166
international securities identification numbering scheme
trust established in accordance with the instructions contained in a last will and testament
A will could have more than one testamentary trust. The trustee named is responsible for managing and distributing the trustor's assets to the beneficiaries as directed in the will. Sometimes called a will trust, the testamentary trust is irrevocable.
highest bid price a prospective buyer is willing to pay at a particular time for a given security
best bid
partnership that has general partners but provides its individual partners some level of protection against personal liability for certain partnership liabilities
One example of a limited liability partnership is that of an incorporated limited partnership (ILP) in Australia.
Law firms, accountancies, wealth managers, professional medical groups, and other professional consultancies often take the form of a limited liability partnership.
LLPs are a flexible legal and tax entity that allows partners to benefit from economies of scale by working together while also reducing their liability for the actions of other partners.
assessment activity resulting in a grade or score and potentially a report describing the score and the process used to determine that score
call feature whereby the issuer can recall part of the issue on scheduled dates, where bonds are selected to be called according to some rule, or by selecting various bonds at random
economic indicator representing the broadest measure of aggregate economic activity, measuring the total unduplicated market value of all final goods and services produced within a statistical area in a period
BEA's Handbook of Methods for GDP and related national accounts, available at https://www.bea.gov/methodologies/index.htm#national_meth
Gross domestic product (GDP) is the value of the goods and services produced by the nation's economy less the value of the goods and services used up in production. GDP is also equal to the sum of personal consumption expenditures, gross private domestic investment, net exports of goods and services, and government consumption expenditures and gross investment. Conceptually, this measure can be arrived at by three separate means: as the sum of goods and services sold to final users, as the sum of income payments and other costs incurred in the production of goods and services, and as the sum of the value added at each stage of production. Although these three ways of measuring GDP are conceptually the same, their calculation may not result in identical estimates of GDP because of differences in data sources, timing, and estimation techniques.
GDP represents a valuation expressed in terms of the prices actually paid by the purchaser after all applicable taxes and subsidies.
partner and part-owner that is responsible for managing the day to day operations of the partnership and that may be jointly and severally liable for the obligations of the partnership
Note that although typically a general partner is a person, in the context of certain funds, such as private equity, a general partner may be a firm that manages the fund.
Federal Reserve district and member bank, with jurisdiction over a specific region of the US, named for the city in which the reserve bank is located
identifier that identifies a demand deposit account provided by a bank
indicates the entity considered the 'start node' or consolidated entity from an ISO 17442 perspective
any office or any place of business of a foreign bank located in any State of the United States at which deposits are received established and operating under section 4 of the International Banking Act of 1978 that is insured and regulated by the Federal Deposit Insurance Corporation (FDIC)
insured federal branch of foreign banking organization
identifies the date on which an individual was born
share whose ownership/transfer/sale is not subject to special conditions including country-specific restrictions
unrestricted share
interbank rate that is the interest rate at which participating banks are willing to borrow deposits from other banks
Unlike an interbank offered rate, which is the rate at which banks lend money, an interbank bid rate is the rate at which banks ask to borrow.
public offering involving securities that are excused from certain regulatory reporting requirements
Such an offering may be considered exempt either because the issuer is exempt or the transaction specific to the offering is exempt.
personal right, privilege, or benefit that a government, contract, or law provides or protects, making an individual or entity eligible to receive something
This entitlement creates a corresponding obligation for the provider to deliver that benefit.
A legal right, if challenged, may be supported in court as recognizable and enforceable in law, statutes, regulations, or other legislative actions.
contract terms specifying when and how a security may be converted to another security (usually of the same issuer)
bond with a coupon that increases (steps up) while the bond is outstanding
The step change may be one time, or occur according to a schedule or at regular intervals.
preferred share that confers multiple votes per share, may be exchanged for securities of another issuer, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic stated income, and is registered
preferred, enhanced voting, redeemable/exchangeable/extendable, fixed income, registered share
senior-most corporate officer responsible for financial control and planning for an organization or project
He or she is in charge of all accounting functions including (1) credit control, (2) preparing budgets and financial statements, (3) coordinating financing and fund raising, (4) monitoring expenditure and liquidity, (5) managing investment and taxation issues, (6) reporting financial performance to the board, and (7) providing timely financial data to the CEO. Also called chief finance officer, comptroller, controller, or finance controller.
shareholders's equity that formally confers control in the entity, either by law or as explicitly stated in a corresponding equity instrument
indicates the market capitalization of some issuer as of some date
has market capitalization
document offered for general distribution and usually produced in multiple copies
ISO 5127:2017, Information and documentation - Foundation and vocabulary
A publication can be anything made public by print (such as a newspaper, magazine, pamphlet, letter, telegram, via computer modem or program, or in a poster, brochure or pamphlet), orally, or by broadcast (radio, television).
specifies the gross amount of credit that has been provided to the borrower as of a given point in time with respect to a specific agreement (e.g. for line of credit)
written rules for conduct of a corporation, association, partnership or any organization
option giving the buyer (holder) the right, but not the obligation, to buy (via a call option) or sell (via a put option) the underlying equity assets specified at a pre-determined price (i.e., the strike price, fixed or calculated), on or before a specified date (the expiration date)
equity option
For an Equity Option, one contract represents 100 shares of stock. Equity options settle in 'American style'.
warrant that permits the holder to acquire a package or group of assets at a specified price during a specified period
basket warrant
credit default swap that references more than one obligation or borrower
multi-name credit default swap
For instance, a multiname contract could be written to cover defaults in a reference portfolio (such as in the case of a basket credit default swap) or, as has been increasingly common over the past couple of decades,be based on an index of commonly negotiated single-name CDS. The latter are generally called CDS indexes.
assessment event to estimate the value of something
Note that an appraiser in this context may be a licensed appraiser, such as a real estate appraiser or auction house, or a calculation agent, depending on the circumstances.
indicates something that is carried out, incorporated or put into effect by
A regulation may be implemented by or more corporate policies. Such policies, in turn, may be implemented via various systems, executed by humans and/or automation, that can be audited for compliance purposes.
links a person to their country of citizenship
system for allocating identifiers to passports
Schemes for passport identification are jurisdiction-specific by country.
legally binding obligation that arises from the terms of a contract
Contractual obligations require a party to perform or refrain from performing specific actions, and failure to meet an obligation can result in legal consequences.
credit default swap that references a family of standardized credit derivative indices, where the underlying reference entities are a defined basket of credit from a particular geographic region (e.g. Asia, North America, Europe), and/or credit rating level (e.g. emerging markets, high yield, investment grade)
index credit default swap
Credit default indices trade in standard maturities, and the reference entities are typically the most liquid; the reference portfolio is reassessed periodically to maintain this.
financial institution that accepts deposits primarily from individuals and places a large portion of its funds into mortgage loans
indicates a pre-arranged fixed dividend rate, typically specified in the prospectus, for a preferred share
indicates the period in days between the reset date and the exercise date
has exercise date offset
financial instrument classifier that classifies Asian options based on whether they are rate-based or price based
tax identifier that identifies a taxable person (business) or non-taxable legal entity for a consumption tax that is assessed incrementally, levied on the price of a product or service at each stage of production, distribution, and sale to the end consumer
If the ultimate consumer is a business that collects and pays to the government VAT on its products or services, it can reclaim the tax paid. Not all localities require VAT to be charged, and exports are often exempt. VAT is usually implemented as a destination-based tax, where the tax rate is based on the location of the consumer and applied to the sales price.
dividend that is paid to shareholders periodically
Note that the terms related to ordinary dividend payment are typically specified in the context of a board resolution rather than contractually.
Most dividends are considered ordinary, unless they are specifically designated as qualified dividends.
the frequency at which interest is added to the principal of the debt over the course of the agreement
party that has the legal authority to exercise control
for each call event on the schedule, indicates whether the rate is expressed as a percentage of par or percentage of percentage of cumulative average value (CAV)
Zero coupon bonds and OID bonds are callable at an accreted value.
an entry in the the National Information Center (NIC) repository, a repository of financial data and institution characteristics collected by the Federal Reserve System
National Information Center (NIC) registry entry
identifies a legal entity (controlled party) over which a principal has some measure of control
nominal monetary unit of measure used to represent the real value (or cost) of any economic item; i.e. goods, services, assets, liabilities, income, expenses
financial service offered by a depository institution
Examples include cash management service, foreign exchange service, lending or credit service, investment service, insurance service, merchant service, payroll service, and the like.
aims to achieve within a time frame and with available resources
measure of the difference between the market price of an option, called the premium, and its intrinsic value
extrinsic value
Extrinsic value is also the portion of the worth that has been assigned to an option by factors other than the underlying asset's price. The opposite of extrinsic value is intrinsic value, which is the inherent worth of an option.
option time value
negotiable commodity obtained via some generation process, including electricity, renewable energy, or any power/energy delivered through a utility network or provider
generated resource
futures contract whose underlying asset is at least one bond
bond future
payment card that has integrated circuits embedded within it
The circuits, also referred to as the 'chip,' contain payment card data including but not limited to data equivalent to the magnetic-stripe data.
nonbinding agreement setting forth the basic terms and conditions under which a proposed business deal may be made
Term sheets state the intentions of the parties and are used to guide legal counsel in the preparation of proposed agreements or contracts.
indicates the premium price per share over the market price, if any, that must be paid in order to redeem the stock
identifies the party (supplier, vendor, distributor, etc.) that makes a product available
component of a Department of State address that includes 'UNIT' followed by the unit identifier
a scheme that specifies the elements of an unambiguous legal entity identifier (LEI) scheme to identify the legal entities relevant to any financial transaction
credit event that applies to a given legal person
entity-specific credit event
preferred share that confers multiple votes per share, has no fixed maturity date, provides the same dividends as common/ordinary shareholders, and is registered
preferred, enhanced voting, perpetual, normal income, registered share
commercial bank whose charter is approved by the Office of the Comptroller of the Currency (OCC) rather than by a state banking agency
National Banks are required to be members of the Federal Reserve System and belong to the Federal Deposit Insurance Corporation.
provision of a call feature defining notification requirements
credit event triggered when one or more reference obligations become immediately due and payable as a result of a default or covenant breach on the reference entity's other debt instruments, subject to a materiality threshold
obligation acceleration
international identifier for financial and non-financial institutions used to facilitate automated processing of information for financial services
The BIC is used for addressing messages, routing business transactions and identifying business parties. Note that the use of OrganizationSubUnitIdentifier in FIBO corresponds to the Branch Code in the SWIFT scheme.
bank holding company established or designated by a foreign banking organization under subpart O of the Federal Reserve Board's Regulation YY (12 CFR part 252)
preferred share that confers less than one vote per share, has no fixed maturity date, provides a periodic income whose dividend rate is set periodically, and is registered
preferred, restricted voting, perpetual, adjustable income, registered share
action initiated by a regulatory agency that affects a legal entity or the securities it issues and may have a material impact on that entity's stakeholders, such as shareholders and creditors
regulatory action
preferred share that confers zero votes per share, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic stated income, dividends not paid in any year accumulate, and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, non-voting, redeemable extendable, cumulative participating, registered share
classifier for a smaller structure or component within a larger facility, such as an apartment, office, mail stop, or other similar designation
Note that only certain secondary units require a secondary range, such as an apartment number, to complete a delivery point.
indicates the status of a specific registration, such as for an identifier or license
house, an apartment, a mobile home or trailer, a group of rooms, or a single room occupied as separate living quarters, or if vacant, intended for occupancy as separate living quarters
Separate living quarters are those in which the occupants live separately from any other individuals in the building and which have direct access from outside the building or through a common hall. For vacant units, the criteria of separateness and direct access are applied to the intended occupants whenever possible.
objective that reflects the strategic financial goals and direction of a party within a time frame and available resources
indicates the account to which the transaction record or individual transaction applies
preferred share that confers less than one vote per share, may be exchanged for securities of another issuer, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic stated income, dividends not paid in any year accumulate, and participates with common shareholders in further dividend and capital distributions, and is registered
preferred, restricted voting, redeemable/exchangeable/extendable, cumulative participating, registered share
government bond that may be issued by a regional, rather than national, authority
Municipal bonds may be issued by states, cities, counties, special tax districts or special agencies or authorities of state or local governments.
system for allocating identifiers to national identification numbers
Schemes for national identification numbers are jurisdiction-specific by country.
identifies the formal organization for which the employee works
preferred share that confers less than one vote per share, whose issuer and/or shareholders have the option to extend the maturity date, that provides the same dividends as common/ordinary shareholders, and is registered
preferred, restricted voting, redeemable extendable, normal income, registered share
indicates the monetary amount of the debt
Represents the total debt amount including principal and interest
economic indicator representing a weighted average of the input and output producer price indices
relates a legal person to a directly owned formal organization or subsidiary, depending on the percent ownership interest
preferred share that confers multiple votes per share, may be redeemed at the option of the issuer and/or of the shareholder with an extendable redemption date, provides a periodic income whose dividend rate is adjusted through an auction, and is registered
preferred, enhanced voting, extendable, auction rate income, registered share
preferred share that confers multiple votes per share, may be redeemed at the option of the issuer and/or of the shareholder, provides a periodic stated income, and is registered
preferred, enhanced voting, redeemable, fixed income, registered share
price that that is expressed as a monetary amount
As the consideration given in exchange for transfer of ownership, price forms the essential basis of commercial transactions. It may be fixed by a contract, left to be determined by an agreed upon formula at a future date, or discovered or negotiated during the course of dealings between the parties involved. In commerce, price is determined by what (1) a buyer is willing to pay, (2) a seller is willing to accept, and (3) the competition is allowing to be charged.
contractual terms specifying the calculation of the interest rate for a variable coupon bond
economic indicator representing measure of the rate of change over time in the prices of inputs of goods and services purchased by the producer
bond coupon that has a variable interest rate
offering of securities for sale to the investment public, after compliance with registration requirements of the relevant regulatory authorities
In the US, public offerings generally require approval of the Securities Exchange Commission and/or relevant state regulators, unless the issuer is an exempt issuer, and are usually conducted by an investment banker or a syndicate made up of several investment bankers, at a price agreed upon between the issuer and the investment bankers.
classifier indicating the position or state of something at a particular point in its life-cycle
date on which insurance became effective
unique nine digit identifier, used primarily in the United States, to identify a banking or other financial institution for clearing funds, and, as it appears on a check, denotes the banking institution that holds the account from which funds are to be drawn
The ABA RTN was originally designed to facilitate the sorting, bundling, and shipment of paper checks back to the drawer's (check writer's) account. As new payment methods were developed (ACH and Wire), the system was expanded to accommodate these payment methods. The ABA RTN is necessary for the Federal Reserve Banks to process Fedwire funds transfers, and by the Automated Clearing House to process direct deposits, bill payments, and other such automated transfers.
Routing transit numbers are issued by Accuity on behalf of the American Bankers Association (ABA).
party appointed by some court for the purposes of winding up the affairs of some entity which is no longer solvent
financial asset that is a block of securities or other financial assets bought in one transaction on a given date at a specific price
Buying 100 shares of Apple on Jan 10 at $150/share is one purchase lot; buying 50 more shares on Mar 15 at $160/share is another purchase lot.
Purchase lot is typically used as a trading term by brokers and portfolio managers to describe how holdings are grouped.
common metal that tarnishes, oxidizes, or corrodes relatively quickly when exposed to air or moisture, that is widely used in commercial and industrial applications, such as construction and manufacturing
base metal
Base metals or alloys include metals other than precious metals, such as copper, lead, zinc, tin, iron, steel, or brass. Note that iron and steel are included under metal and metal products in some classification schemes - see https://fred.stlouisfed.org/series/WPU101 for example.
for-profit, unincorporated business that has some characteristics of a corporation and some features of a partnership, with ownership interests represented by shares of stock
1. In the UK, the original (17th century) name for a corporation in which the liability of the owners is limited to the nominal value of the stock (shares) held by them. 2. In the US, a joint stock company is similar to a corporation, but with unlimited liability for the shareholders. Investors in a US joint stock company receive stock (shares) which can be transferred, and can elect a board of directors, but are jointly-and-severally liable for the company's debts and obligations. A US joint stock company cannot hold title to a real property.
classifier of corporate actions that impacts income to shareholders
income-oriented classifier
Cash dividends are a classic example where a public company declares a dividend to be paid on each outstanding share. Bonus is another case where the shareholder is rewarded. In a stricter sense, the bonus issue should not impact the share price but in reality, in rare cases, it does and results in an overall increase in value.
obligation that depends on a future event or the performance of an action
contingent obligation
branch of a foreign bank located in any State of the United States at which deposits are received, established and operating under the laws of that State, where state means any State of the United States or the District of Columbia
state branch of foreign banking organization
financial instrument that settles for immediate delivery on a specified date
spot contract
A spot transaction is a transaction in which some goods or instrument(s) are exchanged for some other goods or instruments, including currency, with no future delivery provision, i.e., within the minimum number of days possible. Examples include currency spots and commodity spot transactions, whose settlement convention is determined by the relevant market.
specifies a fee payable by any party that wishes to participate in a contract based on the index after the start of its life
has up front fee
preferred share that confers less than one vote per share, may be exchanged for securities of another issuer, whose issuer and/or shareholders have the option to extend the maturity date, that provides a periodic income whose dividend rate is adjusted through an auction, and is registered
preferred, restricted voting, redeemable/exchangeable/extendable, auction rate income, registered share