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“Standard” two-party repo, where the party receiving cash delivers bonds to the cash provider.
A mechanism in some settlement systems whereby a member may borrow or lend cash overnight against collateral. The system automatically selects and delivers collateral securities, meeting predetermined criteria to the value of the cash (plus a margin) from the account of the cash borrower to the account of the cash lender and reverses the transaction the following morning.
The simultaneous delivery of securities against the payment of funds within a securities settlement systems.
Delta One products are financial derivatives that have no optionality and as such have a delta of (or very close to) one – meaning that for a given instantaneous move in the price of the underlying asset there is expected to be an identical move in the price of the derivative.
Delta one products can sometimes be synthetically assembled by combining options. Delta One trading desks are either part of the equity finance or equity derivatives divisions of most major investment banks. They generate most revenue through a variety of strategies related to the various Delta One products as well as related activities, such as dividend trading, equity financing and equity index arbitrage.A financial security with a value that is reliant upon or derived from, an underlying asset or group of assets.
A directive is a legal act of the European Union but each member state is free to decide how to transpose directives into national laws.
The mandatory automatic exchange of information in the field of taxation, in relation to reportable cross-border arrangements. DAC6 forms part of the EU’s mandatory disclosure rules.
Entitlements arising on the securities that are loaned out, e.g. dividends, interest, and non-cash distributions.
A dividend is the distribution of a portion of a company’s earnings, decided and managed by the company’s board of directors.