Trade enrichment

Trade Enrichment

Trade Enrichment

Enrichment refers to the action of improving or enhancing the quality or value of something by adding something else. It makes something more meaningful and rewarding. Thus, it can be said that trade enrichment means the action of enhancing the quality of trade, by applying relevant data, with the purpose of improving its efficiency. Trade enrichment makes the trade more worthy and rewarding. (more…)
Forward Commitments

Forward Commitments

Forward Commitments

Forward commitments are agreements between two parties to transact in the future. They specify the commodity to be sold, its price, the date of payments, and the date of delivery. Forward commitments are in several types of derivatives like forward contracts, futures, and swaps.

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Euroclear System

Euroclear System

Euroclear System

Euroclear System is a clearinghouse that settles and clears securities trades executed on European exchanges. It is one of the two principal securities clearinghouses in the Eurozone. It is a Belgium-based financial service,  specialized in verifying information supplied by brokers in security transactions and the settlement of securities transacted on the European Exchange. (more…)
Mark to Market

Mark to Market

What is Mark to market?

Introduction: Mark to market refers to a system of valuing assets, securities, portfolios or accounts by the most recent market price. It is a method of measuring the fair value of assets and portfolios that fluctuates over time. It provides a realistic picture of a company’s current financial situation based on a current market condition. It reflects current market value rather than book value of investments which leads to daily settlements of profits and losses. (more…)
What is Straight Through Processing?

What is Straight Through Processing?

What is Straight Through Processing?

Straight-through Processing ("STP") is a mechanism that automates the end-to-end processing of transactions of the financial instruments. It involves the use of a single system to process or control all elements of the work-flow of a financial transaction, including what is commonly known as the Front, Middle, and Back office, and General Ledger. (more…)
What is Netting?

What is Netting?

What is netting?
  • A method of reducing credit, settlement, and other risks of financial contracts by aggregating (combining) two or more obligations to achieve a reduced net obligation.
  • To minimize net payments and save processing costs, netting offsets receivables against payments due.
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What is Settlement Price?

What is Settlement Price?

What is Settlement Price?

What is Settlement? Settlement is the final exchange of money and securities on the settlement date between the parties to a contract after the transaction has been agreed upon previously. Settlement in a derivatives contract is of two types namely Daily Settlement & Final Settlement. The daily settlement is done using the Mark-to-Market (MTM) procedure whereas the final settlement is done using the closing price at expiry. (more…)
Cash Settlement vs Physical Settlement

Cash Settlement vs Physical Settlement

Cash Settlement vs Physical Settlement

Derivatives Definition A derivative is a financial contract that derives its value from an underlying asset. The foremost common sorts of derivatives are futures, options, forwards, and swaps. Derivatives contracts are either cash-settled or physically delivered on the expiry date of the contract. When a contract is cash-settled, the internet cash position of the contract on the expiry date is transferred between the customer and therefore the seller. (more…)