Derivative: Difference between revisions

602 bytes removed ,  12 December 2020
no edit summary
No edit summary
 
(55 intermediate revisions by the same user not shown)
Line 1: Line 1:
==Skeleton==
{{def|Derivative|/dɪˈrɪvətɪv/|n|{{subtable|{{financial instruments}}}}}}
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]].


==By Format==
Not, and especially not now, in light of the fabulous parallel regulation of the [[Securities Financing Transactions Regulation]], a [[stock loan]] or a [[repo]].
===[[Securities]]===
*[[Debt Capital Markets]]
**[[Medium Term Note]] Programmes
**Stand Alone [[Eurobond]] Issuance
*[[Structured Securities]]
**Structured [[Medium Term Note]]s
**Repackagings and Securitisation


===[[OTC]]===
==Warning: boring stuff below this line==
*{{isdama}}
Where do you start?
===[[Exchange Traded]]===
:{{derivativecontractdefinition}}
*[[Exchange-Traded Funds]] (ETFs)
*[[Exchange-Traded Notes]] (ETNs)


==By Master Agreement==
:{{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:
===Derivatives===
*{{isdama}}
**{{1992ma}}
**{{2002ma}}
*{{tag|ISDA}} [[Credit Support Annex]]
**{{1995csa}} (title transfer  - English Law)
**{{1994csa}} (pledge - New York Law)
*[[European Master Agreement]]
*Domestic european master agreements
**[[Deutsche Rahmenvertrag]] (German Master Agreement)
**[[FBF]] (French Master Agreement)
**[[CMOF]] (Spanish Master Agreement)
===Securities Financing===
====Stock Lending====
*[[Global Master Securities Lending Agreement]] (GMSLA)
*[[Master Securities Lending Agreement]] (MSLA)
*[[Legacy Stock Lending Agreements]]
====Repurchase Agreements====
*[[Global Master Repurchase Agreement]] (GMRA)
*[[Master Repurchase Agreement]] (MRA)


==By Asset Class==
*[[Equity Derivatives]]
*[[Credit Derivatives]]
*[[Currency Derivatives]]
*[[Interest Rate Derivatives]]
*[[Commodity Derivatives]]


==By Activity==
{{sa}}
*[[FWMD Top Trumps]]


==By Risk==
{{ref}}
===Market Risk===
===Credit Risk===
==Regulatory Environment==
Implications for derivatives and capital markets transactions of regulatory initiatives. ''This should cross reference where appropriate the Financial Services Module''
====Supervision and Market Infrastructure====
=====Regulations=====
*[[Dodd Frank]]
*[[European Market Infrastructure Regulation]] (EMIR)
====Investor Protection====
=====Regulations=====
*[[MiFID]]
*[[Prospecus Directive/PRIPS]]
====Capital, Liquidity and Financial Stability====
=====Regulations=====
*[[Capital Requirements Directive]] (CRD4)
*[[Basel III]]
=====Market Making=====
=====Netting=====
=====Risk Weighted Asset Classification=====
*[[Banking book]]
*[[Trading Book]]
 
===Clearing===
===Suitability===