Trade vs Transaction Reporting 2

Trade vs Transaction Reporting

Trade vs Transaction Reporting

In the previous blog, we have highlighted the overview of Transaction Reporting. The reporting requirements of financial firms have changed in a significant manner with an increased focus on the transparency of data to the public. One of the reasons for this requirement is the updated framework of Markets in Financial Instrument Directive ll (MiFID II). MiFID II is designed with the objective of European financial markets more transparent and boosting investors’ confidence. It is important to understand trade reporting and transaction reporting and how they both are different. (more…)
trade confirmation

Trade Confirmation

Trade Confirmation

As mentioned in previous blogs, the trade lifecycle involves a number of steps from the trade initiation to trade settlement and further. Once the trade order is placed, captured, validated, and enriched, the next step is confirmation of the trade.  It is an extremely critical step for the settlement of the trade. Confirmation of trade involves reporting of completion of financial transactions. This article aims to provide an overview of the order confirmation stage. (more…)
When to take the CFA Level III exam?

When to take the CFA Level III exam?

When is a good time to take the CFA Level III exam (the hardest one)

There's no easy answer when it comes to deciding when to take the CFA Level III exam - it entirely depends on your individual circumstances and how prepared you feel. However, in this article we'll explore some of the factors you should consider before making your decision, to help you decide when the right time for you might be.

The CFA Level III Exam

The CFA Level III exam is the hardest of the three CFA exams, and it is important to make sure you are prepared before taking it. The best time to take the CFA Level III exam is when you have completed all of the required coursework and have a solid understanding of the material. You should also make sure you have enough time to study for the exam, as it is a very challenging test. (more…)

At the Money Options

At the Money Options

What is meant by at the money? There are three words that are used to characterize the connection between the options strike price and the price of the underlying asset. One of these expressions is "at the money." There are three possible outcomes for options: at the money, in the money, or out of the money. When referring to options, "at the money" refers to a situation in which the strike price of the option and the price of the underlying securities are equal. In a nutshell, an option is said to be "at the money" when the current price of the underlying stock is the same as the striking price. (more…)
Small-Cap Stocks

Small-Cap Stocks

Small-Cap Stocks

Stocks are categorized on the basis of their market capitalization. The market capitalization of a company is a product of its share price and the outstanding number of shares. Small-Cap is a term used to refer to companies that have a relatively smaller market capitalization. Small-cap are those set of companies whose market capitalization is less than 5000 Cr. They are small-sized emerging companies that may like to grow into mid-cap or large-cap. Stock issued by these companies are known as small-cap stocks and they hold a rank above 251. (more…)

Synthetic Cash

Synthetic Cash

Synthetic Cash

An instrument that is tailored to mimic other financial instruments used in investment options is called Synthetic Cash. Customization can be done to suit the requirements and purpose for use of large investors. It allows investors to choose from investment options without investing capital to acquire or sell an asset. (more…)
Non-Callable Bonds

Non-Callable Bonds

Non-Callable Bonds

Non-callable bonds are also known as non-redeemable. non-callable bonds can only be paid out at maturity. The issuer of a non-callable bond can’t call the bond prior to its date of maturity unless penalties are paid to security holders. It is different from a callable bond. (more…)
Compound Options

Compound Options

Compound Options  (Words<500)

A compound option is an option on another option. A split-free or compound option is an option for which an underlying asset is an option.  Compound options have two strike prices and two expiry dates and also two premiums if the option is exercised. Compound Option provides the owner with the right to buy or sell another option. The first option is called overlying and the second option is called underlying. Compound options can be of any combination of Calls & Puts. (more…)
Black-Scholes-Merton Model

Black-Scholes-Merton Model

Black-Scholes-Merton Model

The Black-Scholes-Merton model is a differential equation used to solve for option prices. The Black-Scholes-Merton model won a noble prize in economics. The standard BSM model is only used to price European options as it does not take into account American options because they can be exercised before maturity. (more…)
Effective Duration

Effective Duration

Effective Duration (Words <500)

The duration calculation for bonds that have embedded options is known as effective duration. It helps in evaluating the price sensitivity of hybrid security to change the benchmark yield curve. This measure of duration takes into consideration the fact that expected cash flows will fluctuate as interest rate changes and therefore is a measure of risk. (more…)