derivative transaction
11physical settlement — Settlement occurs when a financial instrument reaches maturity or expires. A financial instrument is physically settled if the underlying asset is delivered or transferred to the counterparty in exchange for a specified payment. For example, if… …
12open interest — The total number of futures or options contracts of a given commodity that have not yet been offset by an opposite futures or option transaction nor fulfilled by delivery of the commodity or option exercise. Each open transaction has a buyer and… …
13cash settlement — A financial instrument is cash settled if the underlying asset is not delivered or transferred to the counterparty in exchange for a specified payment when the instrument reaches maturity. Instead, the owner of the financial instrument accepts an …
14Open interest — The total number of derivative contracts traded that not yet been liquidated either by an offsetting derivative transaction or by delivery. Related: liquidation * * * open interest ˌopen ˈinterest noun [uncountable] FINANCE in futures (= buying a …
15Reference Obligation — The specific underlying debt upon which a credit derivative is based. A reference obligation is issued by the reference entity. It does not represent all the forms of debt issued by the entity, but only a specific issue. Often, this obligation is …
16spread — n 1 a: the difference between any two prices for similar articles the spread between the list price and the market price of an article b: the difference between the highest and lowest prices of a product or security for a given period c: the… …
17credit default spread — USA credit default spread, Also known as a credit default swap spread or a credit spread (or sometimes, simply, the spread). In derivatives, an amount, typically specified in basis points, above LIBOR that a …
18credit default swap spread — USA credit default spread, Also known as a credit default swap spread or a credit spread (or sometimes, simply, the spread). In derivatives, an amount, typically specified in basis points, above LIBOR that a …
19credit spread — USA credit default spread, Also known as a credit default swap spread or a credit spread (or sometimes, simply, the spread). In derivatives, an amount, typically specified in basis points, above LIBOR that a …
20Commodity Futures Modernization Act of 2000 — The Commodity Futures Modernization Act of 2000 (CFMA) is United States federal legislation that officially ensured the deregulation of financial products known as over the counter derivatives. It was signed into law on December 21, 2000 by… …
