Understanding the Markets
This text is a comprehensive resource from a leading financial management consultant for global banks and institutions which looks at the financial markets that support the trading, dealing and investment processes.
TABLE OF CONTENTS Understanding the Markets
F
- Face value
- The value of a bond, note, mortgage or other security that appears on the face of the issue, unless the value is otherwise specified by the issuing company. Face value is ordinarily the amount the issuing company promises to pay at maturity. It is also referred to as par value or nominal value.
- Failed transaction
- A securities transaction that does not settle on time; i.e. the securities and/or cash are not exchanged as agreed on the settlement date.
- Fair value
- For futures, it is the true price not the market price, allowing for the cost of carry. For options, it is the true price, not the market price, as calculated using an option pricing model.
- Federal Reserve Book Entry System
- CSD for US government securities.
- Fill or kill order
- Type of order input into SETS. It is either completed in full against displayed orders or rejected in full.
- Final settlement
- The completion of a transaction when the delivery of all components of a trade is performed.
- Financial futures/options contracts
- Financial futures is a term used to describe futures contracts based on financial instruments like currencies, debt instruments and financial indices.
- Financial Services and Markets Act 2000
- The legislation that created the single UK regulator, the Financial Services Authority.
- Financial Services Authority (FSA)
- The agency designated by the Treasury to regulate investment business as required by the FSA 1986. It is the main regulator of the financial sector and was formerly called the Securities and Investments Board (SIB).
Copyright David Loader 2002 under license agreement with Books24x7
