Index
9/11 terrorist attacks
30/360 calculation method, accrued interest
Accenture
acceptance test problem grades
see also testing
accounting see investment accounting
accrued interest
30/360 calculation method
actual/360 calculation method
actual/365 calculation method
actual/actual calculation method
business rules
calculation methods
concepts
corporate actions
de-accrued interest
definition
examples
mark-to-market
position-related events
accrued interest days, definition
ACK/NACK protocol, SWIFT gateway
acquisitions see mergers and acquisitions
actual/360 calculation method, accrued interest
actual/365 calculation method, accrued interest
actual/actual calculation method, accrued interest
advanced measurement capital calculation
approach for operational risk
advisory dealing services, stockbrokers
AEX
affirmation, confirmation/affirmation/allocation
trade agreement method
agency trades
definition
STP flows
agile iterative software development model
agile testing
AIM
algorithmic trading, definition
allocation, confirmation/affirmation/allocation trade agreement method
alpha testing
A.M. Best
American style options, definition
AMX
analysis stage, software development
announcement dates, corporate actions
APIs see application programming interfaces
appendices
application programming interfaces (APIs)
arbitrage, definition
asset-backed securities, concepts
assets
general ledger system
shareholders’ equity equation
associated instruments, static data
‘at best’ order instructions
‘at market’ order instructions
Atlassian Software Systems Pty Ltd, JIRA system
AUD currency code
audits
Australia
Australian Securities Exchange
Autex
authentication keys, SWIFTnet PKI
automated lending services, settlement agents
automated test tools
see also testing
average prices, concepts
back testing, definition
back-office systems
see also main settlement system; settlement … definition
backups, BCP
balance information items, general ledger system
balance sheets
see also general ledger …
concepts
off-balance sheet items
Bank of England
see also central banks
objectives
Bank for International Settlements (BIS)
banks
see also commercial …; investment …
Basel Accords
capital adequacy requirements
central banks
IBAN code
Islamic finance
reconciliations
regulations
SWIFT gateway
Basel Accords
Basel Committee
Basel II
baseline versions, VCS
basic indicator capital calculation approach for operational risk
basis point
definition
static data
basis risk, definition
basis swaps
see also interest rate swaps
definition
Baycorp Advantage
BBAN code
BCP see business continuity planning
bearer securities, concepts
benchmark interest rates
see also EURIBOR; LIBOR
concepts
definition
benchmarking uses, outsourcing
beneficial ownership, definition
best execution
concepts
definition
MiFID requirements
RSPs
best practices
mark-to-market
settlement systems
best-shoring model, offshoring
beta testing
BIC codes
see also SWIFT …
bid prices
concepts
definition
bills
see also debt instruments
definition
BIS see Bank for International Settlements
black box testing
block trades, definition
Bloomberg
boards of directors, risk management roles
Boehm, Barry
bond market price calculations, concepts
bonds
see also coupons; debt instruments
accrued interest
collection of maturity proceeds
concepts
convertible bonds
credit ratings
Eurobonds
examples
identification codes
interest rate effects
investment banks
Islamic finance
OTC market
position-related events
prices
primary markets
secondary markets
security calculations
settlement dates
static data
STP flows
terminology
trades
types
warrants
bonus issues, corporate actions
book hierarchy, credit limits
borrowers
repos
stock lending
bourse see investment exchanges
British Transco International Finance BV USD 1500 million zero coupon bond due
budgets
business change programmes
buy or build decisions
characteristics
externally driven changes
insourcing
internally driven changes
IT departments
offshoring
opportunities
outsourcing
PMI
PRINCE2
process improvements
project management standards
quality assurance testing
regulations
reputational risk
requirements gathering
SDLC
settlement systems
software development models
testing
business continuity planning (BCP)
concepts
steps
business recovery efforts, reputational risk
business rules
accrued interest
reconciliations
business skills, SDLC definition
‘business as usual’ activities, IT departments
buy or build decisions
see also outsourcing; software packages
concepts
buy-in notices, failed trades
buy-sellbacks
see also sale and repurchase agreements
concepts
DbV
definition
trade prices
buy-side firms
see also institutional fund managers; investors
concepts
definition
failed trades
stock lending
buybacks
buyer has insufficient cash/credit, failed trades
Byers, Stephen
Cable and Wireless plc GBP 258 million 4senior unsecured convertible bonds due 2010…
CAD see Capital Adequacy Directive
calendars, currencies
call centres, outsourcing
call or notice deposits, executed trades
call or notice loans/deposits
see also money market …
concepts
call options
see also options
concepts
definition
examples
short positions
Canada
cap, definition
capital, shareholders’ equity equation
Capital Adequacy Directive (CAD)
capital adequacy requirements, banks
capital calculation methods, operational risk
capital-growth investments
cash
see also currencies; foreign exchange …;
money market …
collateral
concepts
examples
investment class
means of exchange
repos
stock lending
cash flow projections, stock lending/repos
cash settlement, futures
CCPs see central counterparties
CDSs see credit default swaps
Cedel see ClearStream International
Celent Group
central banks
see also Bank of England
BIS
lenders of last resort
stock lending
central counterparties (CCPs)
see also clearing houses; settlement agents
concepts
examples
major players
regulations
roles
central government investors
central matching engines method, trade agreement
central securities depositories (CSDs)
see also CREST
communications
concepts
definition
investment exchanges
major players
roles
Central Trade Manager (CTM)
CFDs see contracts for differences
CFOs
see also financial control systems
CFTC see Commodity Futures Trading Commission
change control procedures
see also business change …
concepts
change request documents
charities
chart of accounts, general ledger system
Chicago Board of Trade
child trades, definition
China
Chinese walls
Citicorp
City Networks Limited
CJA see Criminal Justice Act
clean prices
see also accrued interest
concepts
definition
clearing houses
see also central counterparties; futures; settlement agents
advantages
concepts
credit risk
definition
examples
investment exchanges
matching engines
regulations
roles
SwapClear
clearing members
concepts
definition
ClearStream International (formerly Cedel)
client orders, STP
client–server applications
closing a project (CP), PRINCE2 processes
CLS Bank, FX transactions
code walkthrough testing
cold standby level, BCP
collars, definition
collateral
see also sale and repurchase agreements; stock
lending
cash
concepts
letters of credit
securities
substitutions
collection of maturity proceeds, position-related events
collective investment schemes
see also insurance companies; pension funds
commercial banks
see also banks
custodians
commissions
see also fees
concepts
definition
static data
Commodity Futures Trading Commission (CFTC)
communications
see also messages
agile iterative software development model
corporate actions
FIX Protocol
money brokers
near-shoring model
open systems
settlement instructions
SWIFT gateway
TCP/IP
companies
see also private …; public …
concepts
company bonds
see also debt instruments
concepts
compensation, coupons
competitive advantages, buy or build decisions
compound interest
see also gross redemption yield
Comptroller of the Currency
configurations, investment banks
confirmation followed by no further action method, trade agreement
confirmations, trade agreement
connectivity issues
buy-side and sell-side connectivity
SWIFT gateway
consideration, concepts
contingency organisations, BCP
contract management, IT departments
contracts for differences (CFDs), concepts
contractual documents
concepts
types
controlling a stage (CS), PRINCE2 processes
convertible bonds
see also debt instruments
concepts
definition
examples
core operations, outsourcing
corporate actions
accrued interest
communications
concepts
corporate restructuring
definition
entitlement factors
examples
mandatory/voluntary aspects
options
packages
position-related events
processing stages
share prices
Smartstream TLM Corporate Actions
stock records
SWIFT gateway
types
workflow applications
corporate finance services, investment banks
corporate restructuring, corporate actions
correlation models, VaR
costs
buy or build decisions
outsourcing benefits
counterparty limits, credit controls
country information, static data
country limits, credit controls
coupon bonds
coupon date
concepts
definition
coupon frequency, definition
coupon period
concepts
definition
coupon rate, definition
coupons
see also debt instruments; interest payments
accounts
accrued interest
calculation methods
compensation
concepts
credit ratings
FRNs
record date
repos
security calculations
covering positions, futures
credit controls, risk management
credit crunch
see also liquidity risk
definition
credit default swaps (CDSs)
concepts
definition
credit limits, concepts
credit policies/limits, investment banks
credit rating agencies
credit ratings
codes
concepts
coupons
definition
institutional investors
prices
credit risk
Basel Accords
clearing houses
concepts
definition
forms
Islamic finance
protection measures
credits, double-entry bookkeeping
CREST
see also central securities depositories
Criminal Justice Act 1993 (CJA)
critical/non-critical systems, IT departments
cross-currency rates, STP flows
Crystal Reports
CSDs see central securities depositories
CTM see Central Trade Manager
cum-warrant bonds
see also warrants
definition
currencies
see also cash; foreign exchange …
calendars
codes
concepts
holiday calendars
interest payments
profit and loss accounts
static data
stock records
STP flows
translation risks
working days
currency risk, definition
currency swaps
concepts
definition
examples
STP flows
trade components/amounts
CUSIP identification codes
custodians
see also settlement agents
commercial banks
concepts
definition
roles
customer-order priorities, concepts
customer-side trade, settlement instructions
Czech Republic
Daimler Chrysler AG
damages to physical assets, operational risk
data collection issues, BCP
data controllers
data models, SDLC
Data Protection Act
data protection requirements
data retention requirements, IT departments
data security
databases
day count conventions
DbV see deliveries by value
de-accrued interest, concepts
dealing desks, static data
debits, double-entry bookkeeping
debt instruments
see also bonds; coupons
collection of maturity proceeds
concepts
credit ratings
equity finance
examples
identification codes
investment banks
Islamic finance
issuers
OTC market
position-related events
prices
primary markets
secondary markets
settlement dates
static data
STP flows
terminology
trades
types
definitions see glossary; individual entries
deliveries by value (DbV), buy-sellbacks
delivery dates, derivatives
delivery risk
see also credit risk
definition
delivery versus payment (DvP)
dematerialised form of registered securities, concepts
department/book limits, credit limits
deposit, definition
depositories
see also central securities …; international central securities …; settlement agents
concepts
depository Trust & Clearing Corporation (DTCC)
depository Trust Company (DTC)
depot account codes, SSI
depot positions
concepts
definition
reconciliations
stock lending/repos
depot transfers, definition
derivatives
see also exchange-traded …; futures; options;
swaps; underlying instruments
CFDs
concepts
definition
delivery dates
FRAs
hedge funds
identification codes
investment banks
investment exchanges
Islamic finance
OTC derivatives
OTC options
position-related events
static data
STP flows
SWIFT gateway
terminology
trade agreement
design stage, software development
Deutsche Bank
Deutsche Borse
development contract documents
development projects
see also IT …; software …
contractual documents
development stage, SDLC
digital certificates, definition
Direct Market Access (DMA)
concepts
definition
statistics
directing a project (DP), PRINCE2 processes
dirty prices
see also accrued interest
bond market price calculations
concepts
definition
disaster recovery, IT departments
discounted margin, definition
discounts, zero coupon bonds
discretionary dealing services, stockbrokers
disruptions to systems, operational risk
diversification, definition
dividend dates, definition
dividends
see also equities
accrued interest
concepts
definition
ex-dividend dates
position-related events
DMA see Direct Market Access
documentation
agile iterative software development model
contractual documents
end-user iterative software development model
outsourcing disadvantages
SDLC stage
Dominion Bond Rating Service
double-entry bookkeeping
concepts
definition
DTC see depository Trust Company
DTCC see depository Trust & Clearing Corporation
due skill and care
duplication problems, static data
DvP see delivery versus payment
EBS see Electronic Broking Services
ECAIs
Economic and Monetary Union
effective date, definition
efficiency attributes, ISO9126
Electronic Broking Services (EBS)
employment practices
BCP
business change activities
IPR
operational risk
outsourcing
skills
training
end-user iterative software development model (EUD)
entitlement factors
corporate actions
interest payments
equities
see also dividends; share …; stocks
bonus issues
buybacks
CFDs
concepts
convertible bonds
corporate actions
debt finance
definition
DMA facilities
hard/soft data
identification codes
investment banks
investment exchanges
issuers
listed/unlisted contrast
position-related events
prices
primary market
secondary markets
settlement dates
static data
statistics
stock splits
STP flows
equity risk, definition
equity swaps
concepts
definition
examples
errors
failed trades
general ledger system
ethical investments
Euclid
EUD see end-user iterative software development model
Eurex
EURIBOR
Euro-Bobl Futures (FGBM)
Euro-Bund Futures (FGBL)
Euro-Schatz Futures (FGBS)
Eurobonds
Euroclear …
Euronext …
Euronext.LIFFE
see also NYSE …
European Quoting Service
European style options, definition
European Union (EU)
Capital Adequacy Directive (CAD)
Investment Services Directive
Markets in Financial Instruments Directive (MiFID)
regulations
euros
EUROSETS
events, position-related events
ex-dividend dates, definition
ex-warrant bonds
see also warrants
definition
exchange rate
see also foreign exchange …
definition
exchange-traded derivatives
see also derivatives; futures; options
concepts
investment banks
traded options
execution, orders
execution venues, definition
execution-only services, stockbrokers
exercise date, definition
exercise price, definition
expenses, general ledger system
expiry dates
derivatives
order instructions
extended working hours IT support model
external reconciliations
see also reconciliations
externally driven changes, business change programmes
face value see principal amount
face-to-face communications, agile iterative software development model
fact finding/recording issues
see also requirements gathering
software development
failed trades
buy-in notices
buyer has insufficient cash/credit
causes
concepts
consequences
definition
IT impacts
prevention methods
processing errors
purchases perspectives
reputational risk
seller has insufficient securities
unmatched settlement instructions
feasibility studies, SDLC
Federal Reserve Bank
fees
see also commissions
definition
static data
stock lending
FICC
FIFO see First-In-First-Out
‘fill or kill’ order instructions
FIN (MT) messages, SWIFT gateway
financial control systems
see also general ledger system; investment
accounting
concepts
IT applications
roles
financial instruments
see also cash; debt …; derivatives; equities
associated instruments
common attributes
concepts
general ledger account types
hard/soft data
identification codes
introduction
Islamic finance
overview
position-related events
securities lending
security calculations
static data
terminology
types
financial operations
Financial Services Authority (FSA)
money laundering
objectives
Financial Services and Markets Act (FSMA)
fire, disaster recovery
First-In-First-Out (FIFO), mark-to-market P&L calculations
Fitch Ratings
FIX Protocol
fixed rate deals, executed trades
fixing dates, definition
floating rate notes (FRNs)
see also debt instruments; discounted margin;
simple margin
caps
collars
concepts
coupon calculations
definition
examples
floors
mark-to-market
position-related events
price calculations
security calculations
flooding, disaster recovery
floor, definition
‘follow the sun’ IT support model
FoP see free of payment
foreign exchange (FX) transactions
see also currencies
CLS Bank
concepts
examples
investment banks
settlement dates
statistics
STP flows
swaps
terminology
translation risks
forms, securities
forward date, definition
forward FX transactions, concepts
forward prices, concepts
forward rate agreements (FRAs), concepts
fountain model
see also software development models
France
Frankfurt Stock Exchange (Deutsche Börse)
FRAs see forward rate agreements
fraud, operational risk
free of payment (FoP), definition
‘Frequently Asked Questions’, IT departments
FRNs see floating rate notes
front-office systems
definition
investment banks
FSA see Financial Services Authority
FSMA see Financial Services and Markets Act
FTSE100
functional testing
functionality attributes, ISO9126
fund managers
concepts
definition
roles
stock lending
funding requirements, stock lending/repos
further reading
futures
see also derivatives
cash settlement
collateral
concepts
contract expiry/delivery dates
covering positions
definition
delivery dates
DMA facilities
examples
expiry dates
interest rates
investment banks
investment exchanges
margin
orders
physical delivery
position-related events
settlement methods
STP flows
SWIFT gateway
trade computations
trading volumes
FX see foreign exchange …
gains, general ledger system
Gartner Group
GBP currency code
general clearing members, concepts
general ledger system
see also investment accounting; stock records
account categories
balance information items
chart of accounts
concepts
correct postings
definition
double-entry bookkeeping
errors
IT
mark-to-market
posting entries examples
posting errors
reconciliations
securities
shareholders’ equity equation
static data
stock lending/repos
STP flows
translation risks
typical view
Germany
gharar
see also Islamic finance
GlaxoSmithKline plc
global custodians
see also custodians
concepts
definition
global perspectives, regulations
glossary
‘good till cancelled’ order instructions
government bonds
see also debt instruments
concepts
government debt
see also debt instruments
repos
grey box testing
gross redemption yield, definition
haircut
concepts
definition
haraam
see also Islamic finance
hard data, financial instruments
hedge funds
concepts
definition
derivatives
investment bank links
prime brokerage
stock lending
hedging
concepts
definition
market risk
helpdesks, IT departments
historical simulation models, VaR
holiday calendars, currencies
Hong Kong Stock Exchange
hot standby level, BCP
HSBC
‘hub and spoke’ order routing service
Hungary
hybrid markets, definition
IBAN code
IBERCLEAR
IBM
ICAP
ICMA see International Capital Markets Association
ICSDs see international central securities depositories
identification codes, financial instruments
identification procedures, money laundering
IFSB see Islamic Financial Services Board
illiquid assets, definition
implementation stage, software development
in-house software, buy or build decisions
income
general ledger system
investments
incremental software development models
index linked securities
see also debt instruments
concepts
definition
India
industry participants
see also institutional …; investment banks; investment exchanges; investors; settlement
agents
SWIFT gateway
inflation rates
see also Retail Price Index
index linked securities
Information Commissioner
information vendors
see also market data
concepts
infrastructure catalogues, IT departments
initial margin
concepts
definition
initial public offerings (IPOs)
see also public offerings
concepts
initiating a project (IP), PRINCE2 processes
innovation outsourcing
see also outsourcing
concepts
insider dealing
Chinese walls
IT departments
regulations
insourcing
institutional fund managers
concepts
definition
investment mandates
roles
institutional investors
see also insurance companies; pension funds
concepts
credit ratings
definition
equity agency trades
orders
statistics
STP
instrument associations, static data
insurance companies
see also institutional investors
concepts
integration testing
intellectual property rights (IPR)
interest payments
see also accrued interest; coupons
accounts
concepts
currencies
debt instruments
entitlement factors
FRNs
Islamic finance
position-related events
stock lending and repos
swaps
interest rate caps, concepts
interest rate fixings, position-related events
interest rate floors, concepts
interest rate risk, definition
interest rate swaps
alternative forms
concepts
definition
examples
STP flows
interest rates
see also yield curves
bond prices
futures
FX transactions
secondary markets in debt instruments
Internal Ratings-Based (IRB) approach
internal reconciliations
see also reconciliations
internal static data
see also static data
internally driven changes, business change programmes
International Bulletin Board
International Capital Markets Association (ICMA)
international central securities depositories (ICSDs)
see also ClearStream …; Euroclear;
SegaInterSettle
communications
concepts
roles
International Order Book
International Securities Lending Association (ISLA)
International Swaps and Derivatives Association (ISDA)
Internet
see also web
Internet Protocol suite (IP)
interviews, requirements gathering
intranets
inverted yield curves
see also yield curves
concepts
investment accounting
see also financial control system; general ledger system
concepts
overview
investment banks
see also banks
back-office systems
concepts
configurations
credit policies/limits
debt instruments
equities
financial control systems
front-office systems
general ledger system
hedge fund links
main settlement system
market data
organisation chart
OTC market
reconciliation system
regulatory accounting system
risk management
roles
static data
stock lending
STP
swaps
SWIFT gateway
investment exchanges
see also individual exchanges; listed …
clearing houses
concepts
CSDs
definition
derivatives
DMA
example
futures
hybrid markets
identification codes of instruments
major exchanges
matching engines
options
order-driven markets
quote-driven markets
roles
static data
ticker symbols
trading system classifications
investment firms
general ledger account types
IT departments
stock lending
investment managers
investment mandates
definition
institutional fund managers
investment research services, investment banks
Investment Services Directive
investment trusts
see also fund managers
investments
see also financial instruments
types
investors
see also buy-side …; hedge funds;
institutional …; private …
concepts
definitions
objectives
statistics
STP
types
invitations to tender see requests for proposals
IP see Internet Protocol suite
IPOs see initial public offerings
IPR see intellectual property rights
IRB see Internal Ratings-Based …
ISDA see International Swaps and Derivatives Association
ISDA master agreement, definition
ISIN identification codes, codes
ISLA see International Securities Lending Association
Islamic Bank of Britain
Islamic finance
concepts
credit risk
debt instruments
definition
derivatives
financing instruments
interest payments
mortgages
prohibitions
regulations
risk management
service delivery
Sharia compliant instruments
stamp duty
statistics
Sukuk instruments
Islamic Financial Services Board (IFSB)
Islamic windows
ISO
ISO7775
ISO9126
ISO15022
ISO17799
issue price
concepts
definition
issuer limits, credit controls
issuers
debt instruments
equities
listed equities
securities
issues concepts, IT departments
IT
see also web
APIs
corporate actions packages
DMA
failed trades
financial control systems
general ledger system
RSPs
Smartstream TLM Corporate Actions
software packages
SWIFT gateway
TCP/IP
IT departments
backups
BCP
business change programmes
business strategy alignment
‘business as usual’ activities
buy or build decisions
change responsibilities
Chinese walls
contract management
critical/non-critical systems
data protection requirements
data retention requirements
data security
databases
disaster recovery
extended working hours support model
‘follow the sun’ support model
‘Frequently Asked Questions’
helpdesks
information classifications
infrastructure catalogues
insider dealing
insourcing
IPR
ISO9126
ISO17799
issues concepts
ITIL
offshoring
outsourcing
partial outsourcing support model
PDCA model
PMI
PRINCE2
project management standards
project over-runs
quality assurance testing
recording/actioning issues
regulations
requirements gathering
responsibilities
role in daily operations
SDLC
servers
SLAs
software development models
software packages
support models
testing
user support roles
VCS
vendor selections
version control systems
IT Infrastructure Library (ITIL)
iterative software development models
see also software development models
Japan
JIRA system, Atlassian Software Systems Pty Ltd
joint requirement development sessions (JRDs)
Jordan Islamic Bank
JP Morgan
JPY currency code
JRDs see joint requirement development sessions
Kerry, John
Last-In-First-Out (LIFO), mark-to-market P&L calculations
LCH.Clearnet
legal issues
see also regulations
data security
stock lending
lenders
repos
stock lending
lenders of last resort, central banks
letters of credit, definition
leverage
liabilities
general ledger system
shareholders’ equity equation
LIBOR
LIFFE FTSE June 2008 Index future
LIFFEConnect
LIFO see Last-In-First-Out
limit order instructions
liquidity risk
definition
VaR shortfalls
listed equities
see also investment exchanges; public limited companies
concepts
issuers
multi-listed securities
Lloyds TSB Bank
load testing see volume testing
loans, definition
local government investors
see also government …
log shipping
London Stock Exchange
see also investment exchanges; SETS …
background
non-UK securities platform
settlement agents
software vendor selections
STP
trading platforms
UK securities platform
long position
concept
definition
losses, general ledger system
lots
see also futures; options
definition
LSE see London Stock Exchange
Madrid Stock Exchange
main settlement system
see also back-office systems
investment banks
maintainability attributes, ISO9126
maintenance margin
concepts
definition
management accounting
see also financial control systems
management by exception, STP
management of risk see risk management
managing product delivery (MP), PRINCE2 processes
managing stage boundaries (SB), PRINCE2 processes
mandatory/voluntary aspects, corporate actions
margin
futures
repos
stock lending
margin management, concepts
mark-to-market
accounts
accrued interest
associated instruments
best practices
concepts
examples
general ledger system
position-related events
practical issues
processes
stock lending/repos
STP flows
swaps
market abuse, regulations
market data
see also data …; information vendors
investment banks
market makers
see also quote-driven markets
DbV
definition
roles
stock lending
market participants
see also institutional …; investment banks;
investment exchanges; investors; private
investors; settlement agents
categories
concepts
information vendors
money brokers
stock lending intermediaries
SWIFT gateway
market risk
causes
concepts
definition
diversification uses
forms
hedging uses
Islamic finance
protection measures
market-side trade, settlement instructions
Markets in Financial Instruments Directive (MiFID), concepts
‘matchbook lending’
see also specialist lending intermediaries
matching engines
concepts
definition
maturity date
concepts
definition
mergers and acquisitions
credit controls
Merrill Lynch
messages
see also communications
FIX Protocol
settlement agent status messages
stock lending/repos
SWIFT gateway
Mexico
Microsoft
Excel
Windows
mid price, definition
MiFID see Markets in Financial Instruments Directive
Minicorp Pension Fund
model risk, definition
money brokers
communications
concepts
trade agreement
money laundering
concepts
regulations
Money Laundering Regulations
money market loans/deposits
see also cash
concepts
examples
investment banks
orders
position-related events
settlement dates
STP flows
Monte Carlo simulation method
Moody’s
mortgages, Islamic finance
MT messages see FIN (MT) messages
MTFs see multilateral trading facilities
multi-listed securities, concepts
multilateral trading facilities (MTFs), definition
mutual exchange of confirmations method, trade agreement
mutual funds
see also fund managers
MX messages, SWIFT gateway
Myners, Paul
NASDAQ
see also investment exchanges
National Grid bonds
National Grid Electricity Transmission plc GBP 50 million 1.6574RPI-linked instruments due
National Grid plc EUR 500 million 4.375fixed rate instruments due
National Grid plc EUR 750 million floating rate instruments due
National Insurance numbers
Nationwide Building Society
NDAs see non-disclosure agreement documents
near-shoring model, offshoring
Netherlands
netting of positions advantages, clearing houses
New York Stock Exchange (NYSE)
next coupon date, concepts
nominal amount, definition
nominal ledger see general ledger system
nominal ownership, definition
nominal value see principal value
non-clearing members
concepts
definition
non-core operations, outsourcing
non-disclosure agreement documents (NDAs)
normal market size, definition
Northern Ireland
Northern Rock Bank
nostro account codes, SSIs
notional principal, definition
novation
concepts
definition
NSCC
NYSE see New York Stock Exchange
NYSE Euronext
see also Euronext …; investment exchanges
Oasys
OECD
off-balance sheet items, concepts
offer prices, concepts
Office of Government Commerce (OGC)
offshoring
best-shoring model
classic model
concepts
definition
near-shoring model
OGC see Office of Government Commerce
Omgeo
‘open order’ instructions
open systems, communications
operational risk
Basel Accords
capital calculation methods
causes
concepts
damages to physical assets
definition
disruptions to systems
employment practices
fraud
prevention measures
reconciliations
opportunities, business change programmes
option premiums
concepts
definition
options
see also call…; derivatives; put…; warrants
concepts
corporate actions
DMA facilities
examples
expiry dates
investment banks
investment exchanges
orders
OTC options
position-related events
STP flows
SWIFT gateway
types
order-driven markets
definition
investment exchanges
orders
definition
execution
futures
institutional investors
instructions
money market loans/deposits
options
private investors
STP
swaps
outsourcing
see also software packages; vendor …
benchmarking uses
benefits
buy or build decisions
call centres
case studies
concepts
contractual documents
core operations
cost benefits
definition
disadvantages
documentation shortfalls
employment practices
example activities
forms
insourcing
non-core operations
offshoring
partial outsourcing IT support model
quality concerns
Railtrack plc
reversibility problems
SLA shortfalls
subcontracting contrasts
successfulness assessments
over 365 method see actual/365 calculation method
over-the-counter (OTC) market
see also swaps
concepts
definition
investment banks
OTC derivatives
OTC options
settlement dates
statistics
STP usage
trade agreement
overdrafts, stock lending/repos
P&L accounts see profit and loss accounts
parallel tests, BCP
parent trades, definition
partial outsourcing IT support model
PDCA model, IT departments
pension funds
see also institutional investors
concepts
perpetual FRNs
Philippines
physical assets, operational risk
physical delivery, futures
PIDs see project initiation documents
plain vanilla bonds see straight bonds
planning committees, BCP
planning (PL), PRINCE2 processes
PMBOK
PMI see Project Management Institute
POCA see Proceeds of Crime Act
Poland
POMS
portability attributes, ISO9126
posing errors, general ledger system
position-related events
accrued interest
collection of maturity proceeds
concepts
contract expiry/delivery dates
corporate actions
debt instruments
definition
derivatives
dividends
equities
interest payments
interest rate fixings
mark-to-market procedures
overview
reconciliations
settlement dates
trade dates
value dates
post-implementation stage, SDLC
post-trade anonymity advantages, clearing houses
post-trade transparency requirements, MiFID
posting entries examples, general ledger system
pre-trade transparency requirements, MiFID
premiums see option premiums
present value (PV)
press relations, BCP
prevention methods, failed trades
previous coupon date
concepts
definition
price limits, definition
prices
bonds
concepts
credit ratings
debt instruments
equities
interest rates
market risk secondary markets in debt instruments
secondary markets in equities
software packages
zero coupon bonds
primary market in debt instruments, concepts
primary market in equities, concepts
prime brokerage, concepts
PRINCE2
accreditation qualifications
concepts
principal amount, definition
principal trades, definition
principal value
calculation methods
concepts
principles-based regulations
concepts
definition
private investors
concepts
equity agency trades
orders
stockbrokers
STP flows
private limited companies
see also companies
concepts
Proceeds of Crime Act 2002 (POCA)
process improvements, business change programmes
processing cycle
STP
SWIFT gateway
production outsourcing
see also outsourcing
concepts
profit and loss accounts
see also general ledger …
concepts
currencies
mark-to-market profits
project boards
PRINCE2
vendor selections
project initiation documents (PIDs)
Project Management Institute (PMI)
project management standards
concepts
PMI
PRINCE2
project managers, PRINCE2
project over-runs, IT department
project risk, definition
project sponsors, PRINCE2
project teams
PRINCE2
vendor selections
projects, definition
prototyping iterative software development model
PTM levy
public holidays
see also calendars
public limited companies
see also companies; listed …
concepts
public offerings
see also initial public offerings
concepts
purchases perspectives, failed trades
put options
see also options
concepts
definition
long positions
PV see present value
quality assurance testing
see also IT …; software …; testing
concepts
ISO9126
quasi interest periods
quote-driven markets
see also market makers
definition
Railtrack plc
real-time enquiries, settlement systems
realised profits, concepts
receiving firms, SWIFT gateway
reconciliations
bank reconciliations
business rules
concepts
definition
depot positions
external reconciliations
internal reconciliations
investment banks
position-related events
software packages
stock records
SWIFT gateway
record dates
concepts
definition
recording/actioning issues, IT departments
recovery strategies, BCP
registered securities
see also securities
definition
registrars
regression testing
regulations
see also Basel …
banks
BIS
business change activities
business change programmes
CAD
capital adequacy requirements
CFTC
clearing houses
concepts
data security
European Union
FSA
FSMA
global perspectives
ICMA
insider dealing
Islamic finance
IT departments
market abuse
MiFID
money laundering
objectives
principles-based regulations
reconciliations
SEC
transparency requirements
United Kingdom
United States
regulatory accounting system
see also financial control systems
definition
investment banks
regulatory news service, definition
regulatory reporting
see also financial control systems
regulatory trade reporting
see also post-trade transparency requirements
concepts
OTC derivatives
reliability attributes, ISO9126
reports
regulatory reporting
testing
repos see sale and repurchase agreements
reputational risk
business change programmes
business recovery efforts
concepts
definition
failed trades
requests for information (RFIs)
requests for proposals (RFPs), concepts
requirement workshops
requirements gathering
see also software development …
activities
common methods
concepts
RFPs
software development
stakeholder interviews
test cycle
use cases
Retail Price Index (RPI)
see also inflation rates
retail service providers (RSPs)
concepts
definition
Reuters
reverse repos
see also sale and repurchase agreements
reverse stock splits
review stage, SDLC
RFIs see requests for information
RFPs see requests for proposals
riba
see also Islamic finance
rights issues, concepts
risk assessments
BCP
data security
risk management
board of directors
concepts
credit controls
investment banks
Islamic finance
types of risk
VaR
Risk Management Association
risk management department, roles
risk-based pricing, credit ratings
RiskMetrics
risks, types of risk
Royce’s model see waterfall process models
RPI see Retail Price Index
RSPs see retail service providers
safe custody services
sale and repurchase agreements (repos)
see also collateral; stock lending
business applications
buy-sellbacks
cash flow projections
classic repos
collateral types
concepts
conceptual example
definition
depot positions
examples
forms
funding requirements
interest payments
margin
mark-to-market
messages
posting entries
repo rates
reverse repos
stock lending contrasts
stock records
tri-party repos
users
uses
sales perspectives, failed trades
SDLC see software development lifecycle
SEAQ
SEC see Securities and Exchange Commission
secondary markets in debt instruments
accrued interest
concepts
interest rates
prices
terminology
secondary markets in equities
concepts
definition
prices
terminology
trades
securities
see also debt …; equities; financial instruments
collateral
definition
forms
general ledger account types
issuers
terminology
Securities and Exchange Commission (SEC)
securities lending see stock lending
securitisation
see also asset-backed securities
concepts
security issues
data security
static data
SWIFT gateway
SEDOL identification codes
SegaInterSettle
sell-side firms
see also investment banks
clearing houses
definition
failed trades
stock lending
seller has insufficient securities, failed trades
sending firms, SWIFT gateway
Serious Organised Crime and Police Act (SOCPA)
servers, BCP
service contract documents
service level agreements (SLAs)
concepts
contractual documents
definition
SETS
see also London Stock Exchange
SETSqx
settlement
best practices
concepts
definition
failed trades
futures
real-time enquiries
STP
swaps principles
trade agreement
settlement agents
see also clearing houses; custodians; depositories
automated lending services
concepts
confirmation/affirmation/allocation trade
agreement method
failed trades
ISIN identification codes
London Stock Exchange
roles
settlement messages
settling within tolerance
static data
status messages
stock lending
STP flows
SWIFT gateway
trade agreement
tri-party repos
settlement dates
concepts
definition
position-related events
settlement instructions
communications
concepts
contents
definition
failed trades
stock lending
unique reference numbers
unmatched settlement instructions
settlement messages
ISIN identification codes
settlement agents
settling within tolerance
Shanghai Stock Exchange
share certificates
see also equities
concepts
share markets see investment exchanges
shareholders
see also equities
concepts
shareholders’ equity equation
shares
see also equities
Sharia law
see also Islamic finance
Sharia Supervisory Board
short position
concepts
definition
short selling
Simmons, Michael
simple margin
definition
formula
simple yield to maturity
see also gross redemption yield
definition
SIs see systematic internalisers
site considerations, disaster recovery
skills
deficits
SDLC definitions
vendor selections
SLAs see service level agreements
SLC see systems life cycle
SLIs see specialist lending intermediaries
Smartstream TLM Corporate Actions
smoke testing
Social Security numbers
SOCPA see Serious Organised Crime and Police Act 2005
soft data, financial instruments
software development lifecycle (SDLC)
see also IT …
concepts
deliverables
stages
software development models
see also IT …
agile model
concepts
end-user development model
fountain model
iterative models
prototyping model
spiral model
waterfall process models
software licence documents
software maintenance contract documents
software packages
see also development projects; IT; vendor …
buy or build decisions
concepts
contractual documents
corporate actions
evaluation criteria
identification methods
IPR
key people evaluations
price considerations
product demonstrations
reconciliations
references
RFPs
VCS
software selection procedures
see also IT
software testing
see also testing
definition
software vendors see vendor selections
Solvency Directive see Capital Adequacy Directive
Sony
sovereign risk
see also credit risk
definition
SPAN, definition
special-purpose vehicles (SPVs)
specialist lending intermediaries (SLIs)
see also stock lending
concepts
DbV
definition
spinoffs
spiral iterative software development model
spot date, definition
spot FX transactions
see also foreign exchange …
concepts
definition
spot prices, definition
spreads
SPVs see special-purpose vehicles
SQL databases
SSIs see standard settlement instructions
stakeholder interviews, requirements gathering
stamp duty
Standard & Poor’s
standard settlement instructions (SSIs)
concepts
data examples
definition
depot account codes
nostro account codes
Omgeo Alerts
standardised capital calculation approach for operational risk
standby servers, BCP
start date, definition
starting up a project (SU), PRINCE2 processes
static data
associated instruments
calendars
challenges
commissions
concepts
country information
credit policies/limits
currencies
definition
duplication problems
fees
financial instruments
general ledger system
identification codes of instruments
important items
instrument associations
internal static data
overview
security calculations
settlement agents
SSIs
STP role
trading books
trading parties
user-defined instrument groups
working days
static data repositories
concepts
definition
status messages, settlement agents
statutory reporting
see also financial control systems
stock exchanges see investment exchanges
stock lending
see also sale and repurchase agreements
beneficial ownership
business applications
cash flow projections
collateral types
concepts
conceptual example
definition
depot positions
examples
fees
funding requirements
interest payments
intermediaries
legal issues
margin
mark-to-market
messages
nominal ownership
posting entries
repo contrasts
settlement agents
settlement instructions
SLIs
statistics
stock records
SWIFT gateway
users
uses
stock records
see also general ledger system
concepts
corporate actions
currencies
definition
double-entry bookkeeping
investment banks
reconciliations
stock lending/repos
STP flows
stock splits
stock transfer forms, concepts
stockbrokers
stocks
see also equities
stop loss order instructions
store and forward principle, SWIFT gateway
STP see straight-through-processing
straight bond price calculations
see also gross redemption yield; simple yield …
concepts
straight bonds
see also bills; bonds
concepts
definition
examples
security calculations
straight-through-processing (STP)
agency trades
buy-side and sell-side connectivity
client orders
concepts
currency swaps
debt instruments
definition
derivatives
DMA
equity agency trades
futures
general ledger system
institutional investors
interest rate swaps
London Stock Exchange
money market loans/deposits
options
order flow overview
orders
OTC derivatives
posting entries examples
private investors
regulatory trade reporting
RSPs
settlement
static data
stock records
swaps
trade agreement
usage statistics
stress testing, definition
strike price, definition
subcontracting contrasts, outsourcing
subprime mortgages
substitutions, collateral
Sukuk instruments
see also Islamic finance
supervision see regulations
support models, IT departments
SwapClear
swaps
see also currency …; interest rate …
CDSs
collection of maturity proceeds
concepts
equity swaps
examples
interest payments
investment banks
mark-to-market
orders
position-related events
public holidays
settlement principles
STP flows
SWIFT gateway
ACK/NACK protocol
BIC codes
concepts
connectivity issues
corporate actions
data retention requirements
definition
FIN (MT) messages
futures
IP-based network
ISO standards
message standards
MX messages
new developments
options
receiving firms
reconciliations
role
security issues
sending firms
settlement messages
statistics
stock lending/repos
store and forward principle
STP flows
SWIFTnet Link
XML
SWIFT Partner Solutions Directory
SWIFTnet Link
SWIFTnet PKI
system integration testing
system specification stage, SDLC
system testing
systematic internalisers (SIs)
systems development lifecycle see software development lifecycle
systems life cycle (SLC)
T + 1 value date
T + 2 value date
see also value dates
T + 3 value date
see also value dates
T + 4 value date
T + 10 value date
task order documents
tax management
see also financial control systems
tax sheltered investments
TCP see Transmission Control Protocol
technical skills, SDLC definition
terms of reference, SDLC
terrorist attacks
Tesco plc
test beds
test cases
test scenarios
test scripts
testing
acceptance test problem grades
automated test tools
axioms
back testing
BCP
concepts
cycle
ISO9126
IT departments
planning
quality assurance testing
regression testing
reports
retesting the defects
software development
stages
strategy
stress testing
techniques
types
Thomson Financial
ticker symbols, investment exchanges
time loans/deposits
see also money market …
concepts
definition
timely execution, concepts
Tokyo Stock Exchange
see also investment exchanges
TOMS
Toronto Stock Exchange
trade agreement
central matching engines method
concepts
confirmation followed by no further action
method
confirmation/affirmation/allocation method
definition
ISDA master agreement
methods
money brokers
mutual exchange of confirmations method
OTC derivatives
settlement agents
settlement instructions
STP
trade computations, futures
trade dates
definition
position-related events
trade price
see also prices
definition
trade settlements, concepts
traded options
see also options
concepts
trades
definition
secondary markets in debt instruments
secondary markets in equities
trading books
concepts
definition
trading parties
see also clearing houses; investment banks; investment exchanges
definition
identifiers
spot FX transactions
static data
SWIFT gateway
trade agreement
trading volumes, futures
training
PRINCE2 accreditation
SDLC stage
transaction risk, definition
transactions
general ledger system
STP
SWIFT gateway
transfer agents
definition
translation risks
currencies
definition
Transmission Control Protocol (TCP)
transparency requirements, MiFID
TRAX2, ICMA
treasury
see also financial control systems
tri-party repos
see also sale and repurchase agreements
concepts
trusts
Turner, Richard
UBS
underlying instruments
see also derivatives
concepts
definition
types
volatility risk
underwriters, concepts
unique reference numbers, settlement instructions
unit testing
unit trusts
see also fund managers
United Bank of Kuwait
United Kingdom
see also London Stock Exchange
Data Protection Act
FSA
FSMA
insider dealing
Islamic finance
market abuse
money laundering
offshoring
OGC
outsourcing concerns
regulations
specific offences
United States
Unix
unlisted equities, concepts
unmatched settlement instructions, failed trades
unrealised profits, concepts
usability attributes, ISO9126
USD currency code
use cases, requirements gathering
user acceptance testing
user support roles, IT departments
user-defined instrument groups, static data
valuation difficulties
see also prices
asset-backed securities
Islamic financing instruments
value dates
see also T + …
concepts
defaults
definition
position-related events
Value-at-Risk (VaR)
associated instruments
back testing
benefits
calculations
concepts
definition
disadvantages
overview
stress testing
variation margin see maintenance margin
VCS see version control systems
vendor selections
see also outsourcing; software packages
concepts
contractual documents
evaluation criteria
history quality checks
identification methods
key people evaluations
price considerations
product demonstrations
references
RFPs
stages
version control systems (VCS), concepts
Vodafone plc
volatility risk, definition
volume testing
voluntary aspects, corporate actions
W3C see World Wide Web Consortium
WAP see weighted average price
warm standby level, BCP
warrants
concepts
definition
waterfall process models
see also software development models
concepts
web
see also Internet
private investors
RSPs
weighted average price (WAP), concepts
white box testing
Wholesale Money Brokers Association
work order documents
work packages, PRINCE2
workflow applications, corporate actions
working days
currencies
static data
World Bank
World Wide Web Consortium (W3C)
write OTC options, definition
written plans, BCP
XML
yield curves, concepts
yield to maturity, concepts
zero coupon bonds
see also bonds
concepts
definition
discounts
examples
prices
Index compiled by Terry Halliday