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Financial Services Authority in the United Kingdom of Great Britain and Northern Ireland. www.fsa.gov.uk

The Financial Stability Institute (FSI), is one of the bodies hosted by the Bank of International Settlements (BIS) at its headquarters in Basel. Established in 1999 by the BIS and the Basel Committee on Banking Supervision, its primary role is to improve the co-ordination between national Bank Regulators through holding seminars and acting as a clearing house for information on regulatory practice.

A financial contract obligating the buyer to purchase an asset (or the seller to sell an asset), such as a physical commodity or a financial instrument, at a predetermined future date and price. Futures contracts detail the quality and quantity of the underlying asset; they are standardized to facilitate trading on a futures exchange. Some futures contracts may call for physical delivery of the asset, while others are settled in cash. The futures markets are characterized by the ability to use very high leverage relative to stock markets.

The holder receives predetermined interest at regular intervals by the issuer. (usually annual).

also straight bondbond with a fixed couponopposite: floating rate note

Exchange of fixed against variable interest rates.

A deposit held at a financial institution that has a fixed term. These are generally short-term with maturities ranging anywhere from a month to a few years. When a term deposit is purchased, the lender (the customer) understands that the money can only be withdrawn after the term has ended or by giving a predetermined number of days notice. By having the money tied up you'll generally get a higher rate with a term deposit compared with a demand deposit.

Bond with a fixed coupon. Contrary floating rate note

A debt instrument such as a bond, debenture or gilt-edged bond that investors use to loan money to a company in exchange for interest payments. A fixed-interest security pays a specified rate of interest that does not change over the life of the instrument. The face value is returned when the security matures.

couponswap in which a fixed interest rate (coupon) is paid, and a variable interest rate (e.g. EURIBOR, LIBOR) is received

coupon swap in which a fixed interest rate (coupon) is received, and a variable interest rate (e.g. EURIBOR, LIBOR) is paid.

price- resp.rate-fixing, e.g. LIBOR, EURIBOR, goldfixing, foreign exchange fixing, etc.

yield curve with the same interest rate level for all periods

a US-style repo in which the purchaser redeems the cash in fixed installments.

abbr. Floating Rate Note

A bond with a variable coupon that is linked to an index (eg, 6-month EURIBOR).

a repo with a variable interest rate (e.g. EONIA)

A floor is an interest rate floor for a variable interest rate, and consists of a series of put options on a fixed reference interest rate (e.g. 6-months EURIBOR) with the same strike. A single option of this series is called floorlet. The purchaser of the cap receives a compensation from the seller, if the reference interest rate is fixed below the strike at the expiry date.

Classic stock exchange type in which the trade takes place physically in a trading room.

a single option out of a floorv. floor