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…)
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…)
reference data in trading

Reference Data in Trading

Reference Data in Trading

Trading, here, refers to the transfer of a stock or security from the seller to the buyer. There is a number of risks involved in trading such as Liquidity Risk, Market Risk, Credit Risk, Interest rate risk, and so on. Along with all the risks mentioned, consideration of Operational Risk is also of so much importance. Operational risk refers to uncertainties and hazards faced in performing day-to-day or routine activities. --- Change it  (more…)
Hedge Ratio

Hedge Ratio

Hedge Ratio

The ratio of exposure to a hedging instrument to the value of the hedged asset is called a hedge ratio. It compares the value of a position protected through the use of a hedge with the size of the entire position itself. It is the comparative value of the open position hedges with the position’s aggregate size itself. A ratio of 1 or 100 indicates that the position is fully hedge and a ratio of 0 indicates that it is not hedged at all. (more…)
Strangle Strategy

Strangle Strategy

Strangle Strategy

To make it cheaper to execute the option strangle is the slight modification of the straddle. A strangle can hold both the call and put options within the same underlying asset and the same expiration date. Strangle is cheaper than the straddle because strangle can buy or sell both the call and put option at the Out-of-the-Money Strike price. It is useful when the market moves in one direction either upside or downside.  (more…)
American vs European options

American vs European options

American options vs European options

An option is a right, but not an obligation to buy(sell) an option that is derived from the underlying asset (Stock, Commodities, Currencies, Indices) at a certain price and a certain date (more…)
Bond Issuer

Bond Issuer

Bond Issuer

The bond market is also known as the debt market or credit market is a financial market where participants can issue new debt, known as the primary market, or buy and sell debt securities, known as a secondary market. This is usually in the form of bonds, but it may include notes, bills, and so on public and private expenditures. Because of its scale and liquidity, the government bond market is a key part of the bond market, and it is almost always used to compare other bonds to determine credit risk. The primary way of a  bond to default is to not pay on time or to not pay in full. (more…)
Capital Markets

Capital Markets

Capital Markets

Capital markets are venues where savings and investments are channeled between suppliers who have the capital and those who are in need of capital. The entities that have capital include retail and institutional investors while those who seek capital are businesses, governments, and the common man. It is a financial market in which long-term debt or equity-backed securities are bought and sold. financial securities are transacted like shares, debentures, debt instruments, bonds, derivative instruments like futures, forwards, options, and swaps. (more…)
Call Option

Call Option

Call Option

An option is a contract that allows an investor to buy or sell an underlying instrument like a security, ETF, or even an index at a predetermined price over a certain period of time. Buying and selling of options take place in the options market, which trades contracts based on securities. Buying an option that allows you to buy shares at a later time is called a call option and buying an option that gives the buyer the right to sell but no the obligation is called put option. (more…)
Asset Allocation Fund

Asset Allocation Fund

Asset Allocation Fund

An investment strategy that balances the risk and rewards of an individual’s portfolio by apportioning it to other asset classes by taking into consideration individual goals, risk appetite, and investment horizon is referred to as asset allocation.  The fund that provides investors with a diversified portfolio of investments across various asset classes is called an asset allocation fund. The three main asset classes are equity, fixed income, and cash equivalents. (more…)