Cyber*School

An agency or separate corporation of a futures exchange that is responsible for settling trading accounts, clearing trades, collecting and maintaining margin monies, regulating delivery, and reporting trading data.

The in the auction determined price at which the highest order volume and the lowest surplus in the order book consists at the end of the call phase.

see also collateralised loan obligation

The last price of the trading day, which was formed for a continuously traded security. Contrary opening price.

closing a position through cancelling the original dealThe party with the positiv present value gets a compansation payment from the counterparty

The netting of all outstanding receivables and payables between two parties. The summation is only done in the case of specified events (eg, bankruptcy, late payments, etc.). Contrary Novation Netting

the premature termination of a deal with compensation of the market value and simultaneous closing of a deal for the duration of the remaining maturity of the original deal at actual marktet data. Close and reprice full fill the same purpose as the variation margin, namely the adaption of the security service by the accrued profits or losses, and is set in, where margin calls are legal not possible e.g. at sell and buy backs.

Particularly in the Anglo-Saxon countries - but also in Germany in the form of closed real estate funds - occurring funds of an investment company whose funds are raised through the sale of a certain limited of shares. If the planned volume is reached the fund is closed and the issue of shares is stopped.

Takes place as the final act of the main trading phase in the market model of continuous trading.

Transaction in which an existing position is liquidated on the futures market, by taking a contrary position. The owner of a long position thus acquires a short position and vice versa. Gain or loss is resulting from the difference between the purchase prices of the two positions.

abbr. Contribution margin

Chicago Mercantile ExchangeThe CME consists of three divisions:the actual CME, at which agricultural products are tradedthe IMM (International Money Market), at which interest-rate- and currency-instruments are traded, and IOM (Index and Option Market), at which index-instruments are traded.www.cme.com

abbr. Central Money Markets Office international clearing institution established by the Bank of England

v. constant maturity swap

abbr. Cost of Carry

abbr. Contingent convertible

combination of a cap and a floorwhereas one is bought and the other is sold in order to reduce prmium cost. If the premium of both options are equal , it is called zero cost collar.

floating rate note with a fixed floor and cap, From the view of the investor this position corresponds to a straight FRN plus a purchased floor and a sold cap (= FRN + collar)

asset pledged as a guarantee for repayment of a granted loan

a multi-tranche debt structure, similar to a collateralised mortgage obligationbut rather than mortgages, low-rated bonds serve as the collateral