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Trade Information Warehouse
The Trade Information Warehouse is a service offering of the Depository Trust & Clearing Corporation, Depository Trust & Clearing Corporation's Deriv/SERV, and is described by DTCC as "a centralized and secure global infrastructure for processing over-the-counter (OTC) derivatives over their life cycle" It is purported to be the security industry's only repository and centralized post-trade infrastructure for servicing Over-the-counter (finance), OTC Credit derivatives, credit derivative contracts throughout their multi-year lifecycles, and is expected to be involved in the newly created public Clearing house (finance), clearing facility of credit default swaps in conjunction with Clearing Corporation, CCorp Securities (finance) {{Econ-stub ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Depository Trust & Clearing Corporation
The Depository Trust & Clearing Corporation (DTCC) is an American Trade (financial instrument), post-trade financial services company providing clearing (financial), clearing and settlement (finance), settlement services to the financial markets. It performs the exchange of security (finance), securities on behalf of buyers and sellers and functions as a central securities depository by providing central custody of securities. DTCC was established in 1999 as a holding company to combine Depository Trust Company, The Depository Trust Company (DTC) and National Securities Clearing Corporation (NSCC). User-owned and directed, it automates, centralizes, standardizes, and streamlines processes in the capital markets. Through its subsidiaries, DTCC provides clearance, settlement, and information services for equities, corporate and municipal Bond (finance), bonds, unit investment trusts, government and mortgage-backed security, mortgage-backed securities, money market instruments, and ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Over-the-counter (finance)
Over-the-counter (OTC) or off-exchange trading or pink sheet trading is done directly between two parties, without the supervision of an exchange (organized market), exchange. It is contrasted with exchange trading, which occurs via exchanges. A stock exchange has the benefit of facilitating liquidity, providing transparency, and maintaining the current market price. In an OTC trade, the price is not necessarily publicly disclosed. OTC trading, as well as exchange trading, occurs with commodities, financial instruments (including stocks), and derivative (finance), derivatives of such products. Products traded traditional stock exchanges, and other regulated bourse platforms, must be well standardized. This means that exchanged deliverables match a narrow range of quantity, quality, and identity which is defined by the exchange and identical to all transactions of that product. This is necessary for there to be transparency in stock exchange-based equities trading. The OTC ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Credit Derivatives
In finance, a credit derivative refers to any one of "various instruments and techniques designed to separate and then transfer the ''credit risk''"The Economist ''Passing on the risks'' 2 November 1996 or the risk of an event of default of a corporate or sovereign borrower, transferring it to an entity other than the lender or debtholder. An unfunded credit derivative is one where credit protection is bought and sold between bilateral counterparties without the protection seller having to put up money upfront or at any given time during the life of the deal unless an event of default occurs. Usually these contracts are traded pursuant to an International Swaps and Derivatives Association (ISDA) master agreement. Most credit derivatives of this sort are credit default swaps. If the credit derivative is entered into by a financial institution or a special purpose vehicle (SPV) and payments under the credit derivative are funded using securitization techniques, such that a debt ob ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Clearing House (finance)
A clearing house is a financial institution formed to facilitate the exchange (i.e., '' clearance'') of payments, securities, or derivatives transactions. The clearing house stands between two clearing firms (also known as member firms or participants). Its purpose is to reduce the risk of a member firm failing to honor its trade settlement obligations. Description After the legally binding agreement (i.e., ''execution'') of a trade between a buyer and a seller, the role of the clearing house is to centralize and standardize all of the steps leading up to the payment (i.e. ''settlement'') of the transaction. The purpose is to reduce the cost, settlement risk and operational risk of clearing and settling multiple transactions among multiple parties. In addition to the above services, central counterparty clearing (CCP) takes on counterparty risk by stepping in between the original buyer and seller of a financial contract, such as a derivative. The role of the CCP is to perform t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Credit Default Swap
A credit default swap (CDS) is a financial swap agreement that the seller of the CDS will compensate the buyer in the event of a debt default (by the debtor) or other credit event. That is, the seller of the CDS insures the buyer against some reference asset defaulting. The buyer of the CDS makes a series of payments (the CDS "fee" or "spread") to the seller and, in exchange, may expect to receive a payoff if the asset defaults. In the event of default, the buyer of the credit default swap receives compensation (usually the face value of the loan), and the seller of the CDS takes possession of the defaulted loan or its market value in cash. However, anyone can purchase a CDS, even buyers who do not hold the loan instrument and who have no direct insurable interest in the loan (these are called "naked" CDSs). If there are more CDS contracts outstanding than bonds in existence, a protocol exists to hold a credit event auction. The payment received is often substantially less ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Clearing Corporation
The Clearing Corporation (TCC, former CCorp) is "a Delaware corporation owned by 17 stockholders (which include banks Goldman Sachs, Deutsche Bank and Morgan Stanley, as well as inter-dealer brokers ICAP (company), ICAP and GFI Group and German derivatives exchange Eurex), many of whom represent the world-wide derivatives marketplace participants and market makers." In 2008, the Clearing Corporation and the Depository Trust & Clearing Corporation (DTCC) announced a Credit default swap, credit default swap (CDS) public clearing facility that will be linked to DTCC's Trade Information Warehouse. On September 29 of 2008, CCorp affirmed that the CDS clearing counterparty will launch by year-end. References External links www.theice.com/clearing-corp Financial services companies of the United States {{US-company-stub ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
