Sunday, 31 August 2008

New Trading Glossary Terms

DWS Investments
The mutual fund arm of Deutsche Asset Management and the second-largest European mutual fund company
International Securities Lending Association
A trade association established in 1989 to represent the common interests of participants in the securities lending industry. ISLA works closely with European regulators and in the United Kingdom has representation on the Securities Lending and Repo Committee, a committee of market practitioners chaired by the Bank of England.
ISLA
International Securities Lending Association
RMA
Risk Managemement Association
Total Return Swap
A contract in which one party receives interest payments on a reference asset, plus any capital gains and losses over the payment period, whereas the other receives a specified fixed or floating cash flow unrelated to the credit worthiness of the reference asset, especially where the payments are based on the same notional amount. The interest payments are floating payments and are usually based upon the LIBOR with a spread added according to the agreement between parties. The reference asset may be any asset, index, or basket of assets.
TRS
Total Return Swap

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