Tag Archives: Investment Banking

  • Swap Execution Facility (SEF)

    Posted on September 26, 2016 by Admin in Investment Banking.

    A Swap Execution Facility (SEF) is a trade execution platform which provides pre-trade information and other execution mechanism for executing a financial swap trade between two parties or among different parties. Swap Execution Facilities are regulated by the SEC and CFTC in USA under the provisions of Dodd Frank Wall Street reform and consumer protection act (http://crackmba.com/dodd-frank-financial-regulatory-reform-bill/). As per CFTC act, […]

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  • Credit Default Swap (CDS)

    Posted on September 16, 2016 by Admin in Derivatives, Investment Banking.

    A credit default swap (CDS) is an agreement between two parties which are protection seller and protection buyer where the buyer of the CDS makes a series of payments to the seller and in return, receives the amount when the issuers defaults on its pre-agreed payment. In CDS, the credit risk of the issuer is […]

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  • Credit derivatives

    Posted on September 16, 2016 by Admin in Derivatives, Investment Banking.

    A credit derivative is a financial instrument for which the value is derived from the credit risk on an underlying financial asset. These are bilateral contracts between a buyer and seller under which the seller sells protection to the buyer against the credit risk of the underlying asset. A credit event is an event which […]

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  • OTC Derivatives

    Posted on September 15, 2016 by Admin in Derivatives, Investment Banking.

    OTC (Over the Counter) Derivatives are customized and privately negotiated contracts for which the terms and conditions of the contract are mutually decided by the parties involved in the transaction. These contracts are traded and negotiated directly between two parties without being involved with any Exchange – which gives the Over the counter name. OTC […]

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  • Exchange Traded Derivatives

    Posted on September 15, 2016 by Admin in Derivatives, Investment Banking.

    Exchange Traded derivatives (ETD) are kind of derivatives products that are traded via an approved exchange or an intermediary to hedge credit, counterparty and other risks. A derivatives exchange acts as an intermediary to all related transactions, and in turns takes margin deposit from both the buyers and sellers to mitigate credit risk. For ETD, […]

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