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{{anat|isda|{{subtable|'''[[Financial instrument - FCA Rulebook Term|Financial Instruments]]''' | |||
{{ | |||
'''[[Financial instrument - FCA Rulebook Term|Financial Instruments]]''' | |||
(1) [[Transferable securities]]; <br> | (1) [[Transferable securities]]; <br> | ||
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(8) [[credit derivatives|Derivative instruments for the transfer of credit risk]]; <br> | (8) [[credit derivatives|Derivative instruments for the transfer of credit risk]]; <br> | ||
(9) Financial [[contract for differences|contracts for differences]]; <br> | (9) Financial [[contract for differences|contracts for differences]]; <br> | ||
(10) Options, futures, swaps, forward rate agreements and any other derivative contracts relating to climatic variables, freight rates, emission allowances or inflation rates or other official economic statistics that must be settled in cash or may be settled in cash at the option of one of the parties (otherwise than by reason of a default or other termination event), as well as any other derivative contracts relating to assets, rights, obligations, indices and measures not otherwise mentioned in this Section, which have the characteristics of other derivative financial instruments, having regard to whether, inter alia, they are traded on a regulated market or an MTF, are cleared and settled through recognised clearing houses or are subject to regular margin calls. <br> | (10) Options, futures, swaps, forward rate agreements and any other derivative contracts relating to climatic variables, freight rates, emission allowances or inflation rates or other official economic statistics that must be settled in cash or may be settled in cash at the option of one of the parties (otherwise than by reason of a default or other termination event), as well as any other derivative contracts relating to assets, rights, obligations, indices and measures not otherwise mentioned in this Section, which have the characteristics of other derivative financial instruments, having regard to whether, inter alia, they are traded on a regulated market or an MTF, are cleared and settled through recognised clearing houses or are subject to regular margin calls. <br>}}}} | ||
}} | A [[financial instrument]], feared in Nebraska as some kind of [[Financial weapons of mass destruction|WMD]], in the cradle of the Levant as a sort of Godless gambling contract, amongst commodity producers of the Midwest (other than that one fellow in Omaha) as a legitimate [[hedging]] activity, and for legions of patient [[negotiator|negotiators]] in London, New York, Hong Kong and the thriving satellite constellation of low-cost jurisdictions from Bangalore to Nashville, a steady, dreary, unglamorous means of keeping home fires stoked and food upon the table. | ||
Could be a [[swap]]<ref>Also, fondly, known as a [[sw-ŏp]], but ''never'' a [[sw-æp]]. [[Swap does not rhyme with crap|Swaps aren’t, and don’t rhyme with, crap]].</ref>, an [[option]] or a [[future]] | |||
Not, and especially now in light of the fabulous parallel regulation of the [[Securities Financing Transactions Regulation]], a [[stock loan]] or a [[repo]]. | |||
==Warning: boring stuff below this line== | |||
Where do you start? | |||
:{{derivativecontractdefinition}} | |||
:{{tag|MiFID}} definition of [[derivative]] comes from the latter half (items (4) - (10)) of the definition of “[[Financial instrument - FCA Rulebook Term|Financial Instruments]]” set out in Section C of Annex I to {{tag|MiFID}} as follows: | |||
{{sa}} | |||
*[[FWMD Top Trumps]] | |||
{{ref}} | {{ref}} | ||