Blogs

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23Nov, 23

One-factor APT - Meaning

A special case of the arbitrage pricing theory that is derived from the one-factor model by using diversification and arbitrage. It shows the expected...

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23Nov, 23

Organised Trading Facility (OTF) - Meaning

Introduced by the European Commission as part of the MiFID review. An electronic trading venue intended to be similar in scope to a swap execution fac...

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23Nov, 23

Over-the-counter market (OTC) - Meaning

A decentralized market (as opposed to an exchange market) where geographically dispersed dealers are linked together by telephones and computer screen...

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23Nov, 23

Overnight Index Swap (OIS) - Meaning

An Interest Rate Swap in which a fixed rate leg is exchanged for cash flows based on a published overnight interest rate. The overnight rate is usuall...

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23Nov, 23

Pip - Meaning

The smallest price unit of a commodity or currency. This is an acronym for Percentage Point....

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23Nov, 23

Placement - Meaning

A bank depositing Eurodollars with (selling Eurodollars to) another bank is often said to be making a placement....

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23Nov, 23

Pledge - Meaning

If someone pledges goods, they let a second person take possession of the goods, but the person pledging the goods still owns them. It is often done a...

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23Nov, 23

Portfolio opportunity set - Meaning

The expected return/standard deviation pairs of all portfolios that can be constructed from a given set of assets....

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23Nov, 23

Portfolio swap - Meaning

A total return swap that is covered under a portfolio swap agreement between two parties. This arrangement enables high volume trading without requiri...

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23Nov, 23

Potential Future Exposure (PFE) - Meaning

A measurement of counterparty credit exposure that calculates the maximum amount of exposure which can occur at a future point in time with a high deg...