Template:M summ Equity Derivatives 1.12: Difference between revisions
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Now back in the day counterpartiers exchasnged long-form conformations starting out Dear Ladies and Gentlemen, and cleaved to a long and tedious form, but in {{eqderiv}} world it quickly became apparent this was quite the waste of trees: equity derivatives tend to be vanilla, delta-one and traded in high volumes. | [[Confirmation - Equity Derivatives Provision|Now]] back in the day counterpartiers exchasnged long-form conformations starting out Dear Ladies and Gentlemen, and cleaved to a long and tedious form, but in {{eqderiv}} world it quickly became apparent this was quite the waste of trees: equity derivatives tend to be vanilla, delta-one and traded in high volumes. | ||
Thus ISDA-sponsored [[master confirmation]]s quickly emerged, allowing parties to agree general terms up front, so the process of confirming was nothing more than a spreadsheet or xml file exchanged at the end of each day. | Thus ISDA-sponsored [[master confirmation]]s quickly emerged, allowing parties to agree general terms up front, so the process of confirming was nothing more than a spreadsheet or xml file exchanged at the end of each day. | ||
In the prime brokerage space, the parties developed their own synthetic equity swap master conformations — somewhat more bespoke than the ISDA MCs, with a further level of standardisations of currencies and tenors, designed to replicate cash equity trading as nearly as possible. | In the [[prime brokerage]] space, the parties developed their own [[synthetic equity swap]] master conformations — somewhat more bespoke than the ISDA MCs, with a further level of standardisations of currencies and tenors, designed to replicate [[cash equity]] trading as nearly as possible. | ||
All of these things count as {{eqderivprov|Confirmation}}s. No doubt some bright spark will try to do something one day on a [[blockchain]]. | All of these things count as {{eqderivprov|Confirmation}}s. No doubt some bright spark will try to do something one day on a [[blockchain]]. | ||
Revision as of 16:01, 9 May 2022
Now back in the day counterpartiers exchasnged long-form conformations starting out Dear Ladies and Gentlemen, and cleaved to a long and tedious form, but in Equity Derivatives world it quickly became apparent this was quite the waste of trees: equity derivatives tend to be vanilla, delta-one and traded in high volumes.
Thus ISDA-sponsored master confirmations quickly emerged, allowing parties to agree general terms up front, so the process of confirming was nothing more than a spreadsheet or xml file exchanged at the end of each day.
In the prime brokerage space, the parties developed their own synthetic equity swap master conformations — somewhat more bespoke than the ISDA MCs, with a further level of standardisations of currencies and tenors, designed to replicate cash equity trading as nearly as possible.
All of these things count as Confirmations. No doubt some bright spark will try to do something one day on a blockchain.