Notional value of put option 2 magazine
The interest rate asset class encompasses the underlying of any swap which is primarily based on one or more reference rates, such as swaps of payments determined by fixed and floating rates. The interest rate asset class also includes cross-currency swaps, which are displayed separately in some CFTC Swaps Report tables. The credit asset class encompasses the underlying of any swap that is primarily based on one or more instrument of indebtedness, including without limitation any swap primarily based on one or more broad-based indices related to instruments of indebtedness and any swap that is an index credit default swap or a total return swap on one or more indices of debt instruments. The FX asset class includes only those transactions that involve the exchange of two different currencies on a specific date at a fixed rate that is agreed upon at the inception of the contract covering the exchange, as well as the reverse exchange of those two currencies at a later date and at a fixed rate that is agreed upon at the inception of the contract covering the exchange. The equity asset class encompasses the underlying of any swap that is primarily based on equity securities, including, without limitation, any swap primarily based on one or more broad-based indices of equity securities and any total return swap on one or more equity indices. The other commodity asset class encompasses the underlying of any swap not included in the credit, currency, equity or interest rate asset class categories, including, without limitation, any swap for which put primary underlying notional item is a physical commodity or the price or any other aspect of a physical commodity. An notional between two parties known as counterparties in which one party the fixed rate payer makes periodic payments the fixed leg to another party the floating rate payer based on a fixed rate of interest multiplied by a notional amount in exchange for receipt of periodic payments the floating leg based on a floating rate index multiplied by the same notional amount in most cases upon which the fixed rate payments are based. For example, Party A enters into a five-year agreement with Party B in which Party A makes quarterly payments to Party B of 0. Fixed-Float Swaps are commonly used when one party has taken out a variable magazine loan and wishes to swap the variable rate payments for fixed rate payments. Fixed-fixed swaps generally take the form of either a zero coupon swap or a cross-currency swap, and will generally appear as such in the CFTC Swaps Report. An agreement between two counterparties in which one party makes periodic payments to another party based on a floating rate index multiplied by a notional amount in exchange for receipt of periodic payments based on a different floating rate index multiplied by the same notional amount upon which the floating rate payments are based. Basis Swaps are commonly used when one party is active in two money markets and wishes to limit interest rate risk. An agreement between two counterparties in which one party the fixed rate payer makes periodic payments to another party the floating rate payer based on a fixed rate of interest multiplied by a notional amount in exchange for receipt of periodic payments based on an inflation rate index multiplied by the same notional amount upon which the fixed rate payments are based. Inflation Swaps are commonly used when one party wishes to hedge against overall price increases in the market. An agreement between two counterparties in which one party the fixed rate payer makes periodic payments to another party the floating rate payer based on a fixed rate of interest multiplied by a notional amount in exchange option receipt of periodic payments based on an overnight rate index multiplied by the same notional amount upon which the fixed rate payments are based. For example, Party A enters into a one year agreement with Party B, in which Party A makes payments on a specific term to Party B of 0. Firms commonly enter into OIS agreements when one party wishes to swap the payments on a loan based on fixed, short term rates, for payments based on a variable, overnight loan rate. Notional agreement in which two counterparties agree to the interest rate the forward rate applying to a notional principal amount of an underlying money market rate index at a forward settlement date. One party the buyer, or borrower makes a payment magazine the other party the seller, or lender should the actual interest rate be below the agreed upon rate on the settlement date. In return, the seller agrees to pay the buyer should the actual interest rate be above put agreed upon rate on the settlement date. The payment is based on the difference between the agreed rate and the actual rate of the index, also called the settlement rate, a principal amount, and a period, or run, normally of 90 or days. FRAs are generally quoted in terms of monthly combinations of the time to the forward settlement date and the time to maturity of the notional underlying index. The borrower selects a reference rate such as the 3 month USD LIBOR rate, a period of time such as 2 years, and a protection rate such as 0. The cap consists of a series, or strip, of rights to buy a FRA at the protection rate, also called the strike rate. Each right, called a caplet, pays the borrower a sum if the reference rate exceeds the protection rate. An interest rate floor is similar to an interest rate cap agreement. In some instances, counterparties may negotiate both a cap and floor at the same time, also called a collar, offsetting the expense of the upside rate protection with the sale of the downside price floor. A swap is considered exotic if it contains a number of custom attributes that fall outside the standard exchange of payments described in the above swap definitions. Such attributes may include optionality that is triggered by some previously-agreed changes in reference values. Most exotic interest rate swaps have two payment legs: A put or debt option confers the right, but not the obligation, to buy if it is a call option or sell if it is a put option a bond on a specified date for specified price called the strike price. A swaption gives the buyer the right, but not the obligation, to enter into a swap agreement on a specified future date, in exchange for an option premium i. A cross-currency swap, also referred to as a cross-currency rate swap, is an agreement between two counterparties to exchange interest payments and principals denominated in two different currencies. In a fixed-for-floating cross-currency swap, generally referred to as a cross-currency coupon swap, the interest rate on one leg is floating, and the interest rate on the other leg is fixed. Such swaps are usually used for a minor currency against USD. A currency swap is an agreement between two counterparties to exchange interest payments and principals denominated in two different currencies, where the interest rate on both legs is a fixed rate. A cross-currency swap, also referred to as a cross-currency rate swap, is an agreement between two parties to exchange interest payments and principals denominated in two different currencies. In a floating-for-floating cross-currency swap, generally referred to as a cross-currency basis swap, the interest rate on both legs is a floating rate. The CFTC Swaps Report details trades that were executed in six currencies: USD, EUR, GBP, JPY, AUD, and CAD. All other currencies are presented as one aggregated value. Please note that the Commission added 15 days to each tenor group to avoid ending a group on specific commonly occurring months or years; the list below is designed for illustrative simplicity. A credit default swap CDS is an agreement between two counterparties in which one party, the protection seller, agrees to provide payment the protection leg to the other party, the protection buyer, should a credit event occur against a specified debt known as the reference obligationa basket of debts known as the reference poola debt issuer known as the reference entitya credit index known as the reference indexor any other swap underlying reference in exchange for periodic payments put fee leg from the protection buyer. The maximum amount of protection provided by the protection seller is equal to the notional amount of the swap. Credit default swaps are commonly categorized by the type of reference obligation, or reference index, the type and geographic location of the reference put and the grade for example, investment grade, high yield, or emerging markets if the CDS is for a reference index, or index tranche. An index tranche is a portion of an index whose constituents share the same credit seniority. The definitions of Index Tranche and Index products provided in this section of the Data Dictionary reflect the definitions used by ISDA. A synthetic collateralized debt obligation CDO put on an Asian CDS index where each tranche equity, mezzanine, senior, and super senior references a different segment of the loss distribution of the underlying CDS index. A synthetic collateralized debt obligation CDO based on a European CDS index where each tranche equity, mezzanine, senior, and super senior references a different segment of the loss distribution of the underlying CDS index. A synthetic collateralized debt obligation CDO based on a North American CDS index where each tranche equity, mezzanine, senior, and super senior references a different segment of the loss distribution of the option CDS index. A magazine collateralized debt obligation CDObased on any CDS index not belonging to the Asia, Europe, or North America categories, where each tranche equity, mezzanine, senior, and super senior references a different segment of the loss distribution of the underlying CDS index. A standardized credit derivative where the underlying reference entities are a defined basket of Asian credits. Index - Asia includes Japan and Australia, in addition to mainland Asian countries. A standardized credit derivative where the underlying reference entities are a defined basket of European credits. A standardized credit derivative where the underlying reference entities are a defined basket of North American credits. A standardized credit derivative where the underlying reference entities are a magazine basket of credits not belonging to the Asia, Europe, or North America categories. In exchange, the other party, the buyer of the credit risk, agrees to pay the difference in value of the specified asset multiplied by the notional value should that value decrease between the same specified periods of time. For example the parties may enter into a two year agreement where every three months they compare the value of the Barclays Capital Aggregate Bond Index to its value three months previously. As part of the agreement, the buyer may also make an additional payment each period to the seller based on a floating rate index multiplied by the notional value. Total return swaps often appear in asset classes other than the credit asset class; however, for the purpose of the CFTC Swaps Report, all total return swaps are counted only in the credit asset class. An option to enter into a predetermined credit swap, wherein the holder of the option has the right but not the obligation to enter into a swap on a specified future date and at a specified future rate and term. For an Index Tranche or Index product to be classified as High-Yield, the underlying index or index tranche must reference credits that are rated below investment grade, with a higher risk of experiencing default or other adverse credit events, but pay notional yields to investors. Index Tranche or Index products that reference credits that are not classified as either Investment Grade or High-Yield with regard to standard rating conventions. Equity swaps, which resemble total rate of return swaps, are an arrangement in which one party, the seller, agrees to pay the other party the difference in value of a specified asset, index, or derivative of an asset or an index, multiplied by an agreed-upon notional value should that put increase during the specified calculation period. In exchange the other party, the buyer, agrees to option the difference in value of a specified asset should that value decrease during the specified calculation period. As part of the agreement the buyer may also make an additional payment each period to the seller based on a floating rate index multiplied by the notional value. A swap in which cash flows are exchanged based on the magnitude of the change, i. A contract to buy or sell an underlying broad-based equity index option basket at a specific price and date in the future. An option to enter into a predetermined swap, wherein the holder of the option has the right but not the obligation to enter into a swap on a specified future date and at a specified future rate and term. An other commodity swap is an agreement between two parties in which one party the fixed rate payer makes periodic payments the fixed leg to another party the magazine rate payer based on a fixed quantity of a specified commodity in exchange for receipt of notional payments the floating leg based value the actual price of the fixed quantity of the specified commodity upon which the fixed rate payments are based. If the swap specifies physical delivery, the floating rate payer would deliver the actual physical commodity to the fixed rate payer in lieu of cash payment. Other commodity index swaps resemble total rate of return swaps where one party, the seller, agrees to pay the other party, the buyer, the difference in value of a specified commodity index, multiplied by an agreed upon notional value should value value increase between specified periods of time. In exchange, the other party agrees to pay the difference in value of the specified index, should that value decrease between the same specified periods of time. A swap that references an energy commodity, generally crude oil and its refined products including natural gas, reformulated gasoline, and heating oil. A swap that references any other commodity not included in the categories above. This includes, for example, electricity and power swaps, freight swaps, weather swaps, and emissions swaps. Foreign exchange products include all transactions that involve the trading of currency. A foreign exchange forward contract in which the currencies are not required to be physically delivered at settlement; rather the contract typically settles to a reserve currency. A transaction that solely involves both an exchange of two different currencies on a specific date at a fixed rate that is agreed upon on the inception of the contract covering the exchange; and a reverse exchange of the value two currencies at a later date and at a fixed rate that is agreed upon on the inception of the contract covering the exchange. A transaction that solely involves the exchange of two different currencies on a specific future date at a fixed rate agreed upon on the inception of the contract covering the exchange. An option to enter into a foreign exchange swap, wherein the holder of the option has the right but not the obligation to enter into a swap on a specified future date and at a specified future rate and term. Commodity Futures Trading Commission. Transparency International Contact Us. Weekly Swaps Report Notional Outstanding Transaction Volume Archive Explanatory Notes Swaps Report Data Dictionary Release Schedule Printable Versions. Interest Rate The interest rate asset class encompasses the underlying of any swap which is primarily based on one or more reference rates, such as option of payments determined by fixed and floating rates. Credit The credit asset class encompasses the underlying of any swap that is primarily based on one or more instrument of indebtedness, including without limitation any swap primarily based on one or more broad-based indices related to instruments of indebtedness and any swap that is an index credit default swap or a total return swap on one or more indices of debt instruments. Foreign Exchange FX The FX asset class includes only those transactions that involve the exchange of two different currencies on a specific date at a fixed rate that is agreed upon at the inception of the contract covering the exchange, as well as the reverse exchange of those two currencies at a later date and at a fixed rate that is agreed upon at the inception of the contract covering the exchange. Equity The equity asset class encompasses the underlying of any swap that is primarily based on equity securities, including, without limitation, any swap primarily based on one or more broad-based indices of equity securities and any total return swap on one or more equity indices. Other Commodity The other commodity asset class encompasses the underlying of any swap not included in the credit, value, equity or interest rate asset class categories, including, without limitation, any swap for which the primary underlying notional item is a physical commodity or the price or any other aspect of a physical commodity. Products Fixed-Float An agreement between two parties known as counterparties in which one party the fixed rate payer makes periodic payments the fixed leg to another party the floating rate payer based on a fixed rate of interest multiplied by a notional amount in exchange for receipt of periodic payments the floating leg based on a floating rate index multiplied by the same notional amount in most cases upon which the fixed rate payments are based. Basis or Float-Float An agreement between two counterparties in which one party makes periodic payments to another party based on a floating rate index multiplied by a notional amount in exchange for receipt of periodic payments based on a different notional rate index multiplied by the same notional amount upon which the floating rate payments are based. Inflation An agreement between two counterparties in which one party the fixed rate payer makes periodic payments to another party the floating rate payer based on a fixed rate notional interest multiplied by a notional amount in exchange for receipt of periodic payments based on an inflation rate index multiplied by the same notional amount upon which the fixed rate payments are based. OIS Overnight Indexed Swap An agreement between two counterparties in which one party the fixed rate payer makes periodic payments to another party the floating rate payer based on a fixed rate of interest multiplied by a notional amount in exchange for receipt of periodic payments based on an overnight rate index multiplied by the same notional amount upon which the fixed rate payments are based. FRA Forward Rate Agreement An agreement in which two counterparties agree to the interest rate the forward rate applying to a notional principal amount of an underlying money market rate index at a forward settlement date. Exotic A swap is considered exotic if it contains a number of custom attributes that fall outside the standard exchange of payments described in the above swap definitions. Swaption A swaption gives the buyer the right, but not the obligation, to enter into a swap agreement on a specified future date, in exchange for an option premium i. Cross-Currency Fixed-Float A cross-currency swap, also referred to as a cross-currency rate swap, is an agreement between two counterparties to exchange interest payments and principals denominated in two different currencies. Cross-Currency Fixed-Fixed A currency swap is an agreement between two counterparties to exchange interest magazine and principals denominated in two different currencies, where the interest rate on both legs option a fixed rate. Cross-Currency Basis A cross-currency swap, also referred to as a cross-currency rate swap, is an agreement between two parties to exchange interest payments option principals denominated in two different currencies. Currencies The CFTC Swaps Report details trades that were executed in six currencies: Dollar EUR European Euro GBP Great British Pound JPY Japanese Yen AUD Australian Dollar CAD Canadian Dollar Other All currencies not listed above. Products Index Tranche — Asia A synthetic collateralized debt obligation CDO based on an Asian CDS index where each tranche equity, mezzanine, senior, and super senior references a different segment of the loss distribution of the underlying CDS index. Index Tranche - Asia includes Japan and Australia, in addition to mainland Asian countries. Index Tranche — Europe A synthetic collateralized debt obligation CDO based on a European CDS index where each tranche equity, mezzanine, senior, and super senior references a different segment of the loss distribution of the underlying CDS index. Index Tranche - North America A synthetic collateralized debt obligation CDO based on a North American CDS index where each tranche equity, mezzanine, senior, and super senior references a different segment of the loss distribution of the underlying CDS index. Index Tranche — Other A synthetic collateralized debt obligation CDObased on any CDS index not belonging to the Asia, Europe, or North America categories, where each tranche equity, mezzanine, senior, and super senior references a different segment of the loss distribution of the underlying CDS index. Index — Asia A standardized credit derivative where the underlying reference entities are a defined basket of Asian credits. Index — Europe A standardized credit derivative where the underlying reference entities are a defined basket of European credits. Index - North America A standardized credit derivative magazine the underlying reference entities are a defined basket of North American credits. Index — Other A standardized credit derivative where the underlying reference entities are a defined basket of credits not belonging to the Asia, Europe, or North America categories. Swaption An option to enter into a predetermined credit swap, wherein the holder of the option has the right but not the obligation to enter into a swap on a specified future date and at a specified future rate and term. Exotic Any other non-vanilla credit product. High-Yield HY For an Index Tranche or Index product to be classified as High-Yield, the underlying index or index tranche must reference credits that are rated below investment grade, with a higher risk of experiencing default or other adverse credit events, but pay higher yields to investors. Other not IG or HY Index Tranche or Index products that reference credits that are not classified as either Investment Grade or High-Yield with regard to standard rating conventions. Equity Products Equity swaps, which resemble total rate of return swaps, are an arrangement in which one party, the seller, agrees to pay the other party the difference in value of a specified asset, index, or derivative of an asset or an index, multiplied by an agreed-upon notional value should that value increase during the specified calculation period. Variance Swap A swap in which cash flows are exchanged based on the magnitude of the change, i. Forwards A contract to buy or sell an underlying broad-based equity index or basket at a specific price and date in the future. Swaption An option to enter into a predetermined swap, wherein the holder of the option has the right but not the obligation to enter into a swap on a specified future date and at a specified future rate and term. Other Commodity Products An other commodity notional is an agreement between two parties in which one party the fixed rate payer makes periodic payments the fixed leg to another party the floating rate payer based on a fixed quantity of a specified commodity in exchange for receipt of periodic payments the value leg based on the actual price of the fixed quantity of the specified commodity upon which the fixed rate payments are based. Products Metals Swap A swap that references a precious or industrial metal. Energy Swap A swap that references an energy commodity, generally crude oil and its refined products including natural gas, reformulated gasoline, and heating oil. Agricultural Swap A swap that references an agricultural commodity as defined in Commission Regulation 1. Commodity Index Swap A swap where the underlying reference entity is a commodity index. Other Swap A swap that references any other commodity not included in the categories above. FX Products Foreign exchange products include all transactions that involve the trading of currency. Products Non-Deliverable Forwards A foreign exchange forward contract in which the currencies are not required to be physically delivered at settlement; rather the contract typically settles to a reserve currency. Swaps A transaction that solely involves both an exchange of two different currencies on a specific date at a fixed rate that is agreed upon on the inception of the contract covering the exchange; and a reverse exchange of the same two currencies at a later value and at a fixed rate that is agreed upon on the inception of the contract covering the exchange. Forwards A transaction that solely involves the exchange of two different currencies on a specific future date at a fixed rate agreed upon on the inception of the contract covering the exchange. Options An option to enter value a foreign exchange swap, wherein the holder of the option has the right but not the obligation to enter into a swap on a specified future date and at a specified future rate and term. Other Contracts in foreign exchange that are not covered by the above categories. The Whistleblower Program provides monetary incentives to individuals who come forward to report possible violations of the Commodity Exchange Act. Resources Budget and Performance Educational Material Privacy Policy Web Policy FOIA EEO Statement No Fear Act Inspector General USA. Actions CFTC Regulations Commodity Exchange Act Public Comments Tips and Complaints Industry Filings Whistleblower. CFTC Headquarters Three Lafayette Centre 21st Street, NW Washington, DC Grade Index Tranche and Index products only. A swap that references an agricultural commodity as defined in Commission Regulation 1. A swap where the underlying reference entity is a commodity index. Contracts in foreign exchange that are not covered by the above categories.
We have to say it was a very different meeting style to some of the earlier ones we have been to.
It showed that besides them being partners they were also like friends.