Cyber*School

bonds issued by foreign entities in Japan which are not denominated in JPY, the issuer needs a permission by the Japanese ministry of finance

shortcut for short position

Sold or written put.

Sell an underlying asset without corresponding physical coverage. It creates a short position.

abbr. (Domestic) Systemically Important Banks. Describes banks which would be dangerous for the national financial system if they collapse. (see also SIFI)

abbr. (Global) Systemically Important Financial Institutions. Describes financial institutions whose insolvency / bankruptcy would have a serious effect on the financial markets and would lead to a collapse of the financial system.

Singapore International Monetary Exchange merged 1999 with SES (Stock Exchange of Singapore) to SGX (Singapore Exchange)

cp. duration

the general formula is: I = N * R * D/B whereI = interest amountN = nominal amountR = interest rateD = number of days of the interest periodB = assumed number of days of a year (360, 365 or actual calendar days)

(international) securities idenfitication number

(SGX) The SGX was formed in 1999 from the merger of SIMEX (Singapore International Monetary Exchange) and SES (Stock Exchange of Singapore).

money, either cash or eligible securities,periodically set aside by the borrower to redeem all or parts of its long-term deptopposite: purchase fund

cp. smile

Small and medium enterprises (SMEs) are defined as companies that belong to a group with consolidated annual turnover of less than € 50 million.

The shares of the smaller and lesser known companies are called small caps.

The smile-effect (or skew-effect) refers to the fact, that options with different strikes have a different implied volatility. Options pricing models usually assume equal volatilities for all strikes, which is frequently not true in financial markets.

abbr. Sterling Overnight Index Average reference rate of overnight GBP comparable to EONIA

GBP interest rate swap where a variable rate (SONIA) is exchanged against a fixed rate see also: OIS

The at an investment company invested capital against the issue of share certificates and the associated fixed assets of the investement company are linked.

Used in contrast to general collateral to refer to specific securities required in a repo transactionAs the cash lender has a special interest in a specific security he is ready to accept a interest rate which is frequently significantly below the interest rate of general repos.