Chapter 2 Futures Market & CCP Flashcards
define
contract size
Futures Markets and Central Counterparties
specifies the amount of the asset that has to be delivered under one contract
Futures Markets and Central Counterparties
fill in the blank
Those OTC transactions that are not cleared through CCPs are cleared ___
Futures Markets and Central Counterparties
bilaterally
Futures Markets and Central Counterparties
fill in the blank
In the bilaterally cleared OTC market, two companies usually enter into ______ covering all their trades.
Futures Markets and Central Counterparties
[a] master agreement
Futures Markets and Central Counterparties
fill in the blank
master agreements usually include ___ , requiring both parties to provide collateral
Futures Markets and Central Counterparties
[a] credit support annex
Futures Markets and Central Counterparties
Which type(s) of securities won’t receive a haircut in the determination of margin/collateral requirements in a master agreement
Futures Markets and Central Counterparties
treasury securities
Futures Markets and Central Counterparties
settlement determination
Forward
Futures Markets and Central Counterparties
settled at end of contract
Futures Markets and Central Counterparties
settlement determination
Futures
Futures Markets and Central Counterparties
settled daily
settlement determination
Futures Markets and Central Counterparties
standardization
Forward
Futures Markets and Central Counterparties
not standardized
standardization
Futures Markets and Central Counterparties
standardization
Futures
Futures Markets and Central Counterparties
contracts are standardized
standardization
Futures Markets and Central Counterparties
clearing
Forward
Futures Markets and Central Counterparties
private contract between two parties
clearing
Futures Markets and Central Counterparties
clearing
Futures
Futures Markets and Central Counterparties
traded on an exchange
clearing
Futures Markets and Central Counterparties
credit risk
Forward
Futures Markets and Central Counterparties
some credit risk
credit risk
Futures Markets and Central Counterparties
credit risk
Futures
Futures Markets and Central Counterparties
virtually no credit risk
credit risk
Futures Markets and Central Counterparties
list
two types of futures traders
Futures Markets and Central Counterparties
FCMs; locals
Futures Markets and Central Counterparties
define
FCMs
Futures Markets and Central Counterparties
futures commission merchants - follow the instructions of their clients and charge a commission for doing so
define
Futures Markets and Central Counterparties
