Securities Finance glossary

The interest paid on the cash side of securities lending transactions. A rebate rate of interest implies a fee for the loan of securities and is therefore regarded as a discounted rate of interest.

A request by a lender for the return of securities from a borrower.

A dividend record date is the date on which the company finalizes the list of investors who qualify as ‘shareholders of record’.

A regulation is a legal act of a government or other authority that becomes immediately enforceable as law.

A repo or reverse repo that matures on the maturity date of the security being traded.

The interest rate paid on the cash side of a repo/reverse transactions.

Occurs when the market value of a security in a repo or securities lending transaction changes and the parties to the transaction agree to adjust the amount of securities or cash in a transaction to the correct margin level.

Transaction whereby one party sells securities to another party and agree to repurchase the securities at a future date at a fixed price.

Occurs when the borrower of securities returns them to the lender.

Transaction whereby one party purchases securities from another party and agrees to resell the securities at a future date at a fixed price.

An RWA is used to determine the minimum amount of regulatory capital that must be held by banks to maintain their solvency. This minimum is based on a risk assessment for each type of bank risk exposure; credit, market, operational, counterparty and credit valuation adjustment risks.

To renew a trade at its maturity.