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Total return swap: Difference between revisions
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Defined for the purposes of [[SFTR]] as follows: | Defined for the purposes of [[SFTR]] as follows: | ||
:[[total return swap]] means a [[derivative]] contract as defined in point (7) of Article 2 of Regulation (EU) No 648/2012 in which one counterparty transfers the total economic performance, including income from interest and fees, gains and losses from price movements, and credit losses, of a reference obligation to another counterparty. | :''[[total return swap]] means a [[derivative]] contract as defined in point (7) of Article 2 of Regulation (EU) No 648/2012 in which one counterparty transfers the total economic performance, including income from interest and fees, gains and losses from price movements, and credit losses, of a reference obligation to another counterparty.'' | ||
A [[derivative contract]], in turn — and you’ll love this — is defined as per {{tag|MiFID}} as follows: | A [[derivative contract]], in turn — and you’ll love this — is defined as per {{tag|MiFID}} as follows: | ||
:{{derivativecontractdefinition}} | :''{{derivativecontractdefinition}}'' | ||
In a nutshell this means [[option]]s, [[future]]s, [[swap]]s, [[forward rate agreement]]s and any other [[derivative contract]]s relatiing to | |||
*[[securities]], [[currency|currencies]], [[interest rate]]s or [[yield]]s, or other [[derivatives instrument]]s, indices or financial measures | *[[securities]], [[currency|currencies]], [[interest rate]]s or [[yield]]s, or other [[derivatives instrument]]s, [[Index - Equity Derivatives Provision|indices]] or financial measures | ||
*cash settled commodities; | *[[cash settled]] [[commodities]]; | ||
*exchange traded physically settled commodities; | *exchange traded [[physically settled]] [[commodities]]; | ||
*physically settled commodities that otherwise have the characteristics of derivative contracts<ref>I mean Lord, give me strength.</ref> | *physically settled commodities that otherwise have the characteristics of derivative contracts<ref>I mean Lord, give me strength.</ref> | ||
*credit derivatives | *[[credit derivatives]] | ||
*[[contracts for difference]] | *[[contracts for difference]] | ||
{{anat|eqderiv}} | {{anat|eqderiv}} | ||
{{ref}} | |||