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United Kingdom-based news service and former financial market data provider that provides news reports from around the world to news media
An option strategy involving the simultaneous sale of an At The Money Straddle and purchase of an Out Of The Money Strangle. Potential gains will be seen if the underlying financial instrument on which the option is based remains stable while the risk is limited should the underlying move dramatically. See also At the Money, Option, Out of the Money, Straddle, Strangle.
Industry:Financial services
The purchase by a company of its own shares in the open market, usually based on the belief that the shares are undervalued and that buying them will provide a better investment return than putting cash into the underlying business of the company. In theory the buy-back will reduce the number of shares in the market and increase the value of the remaining ones. Also known as a share repurchase. It effectively returns to the shareholders the cash held in company reserves which already belongs to them.
Industry:Financial services
Used to describe financial institutions whose primary business is to make investments either for themselves or on behalf of other investors. The opposite of sell-side, the financial institutions whose primary business is trading.
Industry:Financial services
Orders for goods or services that have not yet been fulfilled. They can be measured in cash terms, or by the number of days of normal production it would take to clear them. The level of backlogs is an important indicator of whether an economy is growing or not. Falling backlogs may be a sign that new orders are dropping and the old ones are being fulfilled, and that producers are less willing to hold large stocks or inventories.
Industry:Financial services
The futures or options contract being traded that is furthest into the future and is thus furthest from expiry. See also Futures, Option.
Industry:Financial services
The department in a financial institution that processes deals and handles delivery, settlement and regulatory procedures. See also Front Office and Middle Office.
Industry:Financial services
Arrangement whereby a loan in one currency is set against a loan in another currency. It can be used to avoid or overcome exchange risks and exchange controls. Also known as parallel loans.
Industry:Financial services
Typically, a bank line of credit used to provide back-up liquidity should an issuer be unable to bankroll the outstanding commercial paper.
Industry:Financial services
Numerous small rises and falls in a market, usually speculative but showing no major overall change in price levels.
Industry:Financial services
Price-setting method in the metal market, whereby a consumer with a long-term contract has the option of fixing the price for a proportion of his contract on the valid LME settlement price. See also LME.
Industry:Financial services
