Securities Trading

ABCDS
A credit default swap based on an Asset-Backed Security itself based on relatively risky home equity loans (U.S.) In effect a type of insurance against default on the underlying ABS.
Assignment
Receipt of an exercise notice by an option writer (seller) that obligates him to sell (in the case of a call) or purchase (in the case of a put) the underlying security at the specified strike price.
At-the-money
Occurs if the strike price of the option is equal to the market price of underlying security.
Avalanche
Network load and stress testing tool for web applications from Spirent Communications. Includes security stress testing, networks, web application testing, web services.
Call
An option contract giving the holder the right to buy the underlying security at a specified price for a certain, fixed period of time.
Capped-Style Option
Option with an established profit cap. The cap price is equal to the option's strike price plus a cap interval for a call option or the strike price minus a cap interval for a put option. Exercised automatically when the underlying security closes above or below the cap price, depending on whether it is a call or a put.
CISSP
Certified Information Systems Security Professional
Common Criteria
Set of strict predefined requirements for security.
Covered Call Option Writing
Trading strategy involving simultaneously selling call options and owning an equivalent position in the underlying security. The reverse is to sells a put option and shorting the underlying security.
Cox, Christopher
Chairman of the Securities and Exchange Commission. Confirmed in 2005.
Data Governance
The process by which companies govern appropriate access to and the use and transmission of their critical data by measuring operational risk and controlling security exposures.
Derivative Security
Financial security whose value is determined in part from an another security's (the underlying security) value and characteristic.
DHS
Department of Homeland Security
Donaldson, William
Former chairman of the Securities and Exchange Commission
Expiration Cycle
The dates on which options on an underlying security expire. A given option is assigned to one of three cycles, January, February or March.
Futures Commission Agent
Engages in soliciting or accepting handling orders for the purchase or sale of futures contracts , subject to the rules of a futures exchange and, who, in connection with solicitation or acceptance or orders, accepts any money or securities to margin any resulting trades or contracts. Can be a firm or person.
General Controls
A type of control activity. Typically involve controls over data center operations, system software acquisition, system maintenance and access security.
HSPD-12
Homeland Security Presidential Directive 12.
IISP
Institute of Information Security Professionals
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.
In-the-money
Occurs if the strike price of a call option is less than the market price of the underlying security. For put options the strike price has to be higher than the market price of the underlying security for it to be in-the money.
ISLA
International Securities Lending Association
LEAPS
Long-Term Equity Anticipation Securities
NNSP
National Nuclear Security Administration
NSA
National Security Agency
Options Industry Council
An industry cooperative funded by the American Stock Exchange, Boston Options Exchange, Chicago Board Options Exchange, International Securities Exchange, NASDAQ Options Market, NASDAQ OMX PHLX, NYSE Arca, and The Options Clearing Corporation.
Physical Controls
A type of control activity. They involve the physical security of assets. They ensure adequate safeguards over access to assets and records.
PSLRA
Private Securities Litigation Reform Act of 1996
Qualified Domestic Institutional Investor
China: programme enabling Chinese insurance companies to invest in oversease securities.
Rule enforced by the SEC requiring U.S. to make available to the public that they make to securities analysts. If the disclosure is intentional the release has to be simultaneous. Unintentional disclosure has to be made available to the public within 24 hours.
RSA Conference
Conference organised every year by security giant RSA.
SEC
Securities and Exchange Commission.
Securities Lending
Lending of securities by one party to another in return for collateral in the form fo cash, government securities or letter of credit. Terms of the loan are governed by a Securities Lending Agreement.
Securities Lending Agreement
Document detailing the terms of a securities lending deal or repurchase agreement (repo).
SIPC
Securities Investors Protection Corporation
TradeSecurity
Provider of security compliance and risk management solutions
TS2
System proprosed by the ECB for a single securities settlements across the Eurozone.
WFI
Supplier of design, deployment and management of wireless communication networks, technology networks and security systems.
Trade Suite / CNS Interface
Application used to streamline trade processing and reduce risk to executing broker and the prime broker. Supplied by National Securities Clearing Corporation
NSCC
National Securities Clearing Corporation
Swaps Pricing Platform
Accessing security quotes generated by broker-dealers that prime brokers use for calculating client's net asset values (NAV). Tool vendor is SQX.