82,891
edits
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) No edit summary |
||
Line 1: | Line 1: | ||
[[Confirmation - Equity Derivatives Provision|Now]] back in the day | ====Section {{eqderivprov|1.12}} {{eqderivprov|Confirmations}}==== | ||
[[Confirmation - Equity Derivatives Provision|Now]] back in the day, counterparties exchanged [[long-form confirmation|long-form conformations]] starting out “Dear Ladies and Gentlemen”, and cleaved to a long and tedious form, but in the quick-fire [[High-frequency trading|HFT]] world of {{eqderiv}} it quickly became apparent this was quite the waste of trees: {{eqderivprov|Transaction}}s tend to be vanilla, [[delta-one]] and traded in high volumes. | |||
Thus ISDA-sponsored [[master confirmation]] | Thus, ISDA-sponsored “[[master confirmation]]s” quickly emerged — sort of intermediate steps between a [[Schedule - ISDA Provision|Schedule]] and a trade {{isdaprov|Confirmation}} 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. | ||
[[Prime broker]]s developed their own [[synthetic equity swap]] [[master confirmation]]s — somewhat more bespoke than the ISDA MCs, with a further level of standardisation 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]]. What is that? Oh, yes, sorry — not blockchain: [[ChatGPT]]. Keep up at the back. |