Equities 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.
Advantest
Supplier of automatic test equipment to the semiconductor industry. Advantest's SoC, logic, memory, mixed-signal and RF testers and device handlers are integrated into the most advanced semiconductor fabrication lines in the world. Founded in Tokyo in 1954, Advantest established its North American subsidiary in 1982 and its European subsidiary in 1984. More information is available at www.advantest.com.
Arbitrage
Simultaneous sale and purchase of identical or equivalent financial instruments or commodity futures to benefit from a discrepancy in their prices.
At-the-money
Occurs if the strike price of the option is equal to the market price of underlying security.
Beauchamp
A platform to manage complex portfolios and satisfy investor and regulatory requirements. Supplied by Linedata
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.
Common Criteria
Set of strict predefined requirements for security.
Compliance Hub
Post-trade automation derivative products. Examples are credit and equity swaps. Communicator Inc.
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.
Equiduct
Multilateral trading facility majority owned by Borse Berlin and Burgundy. Nordic equities markets are the main target.
EquiLend
EquiLend is a provider of trading services for the securities finance industry. With its robust suite of automated trading tools, EquiLend enables its clients to scale their businesses with great efficiency on a global basis in all securities finance markets. Used by borrowers and lenders throughout the world, the EquiLend platform automates formerly manual trading and post-trade processes.
EVCA
Equity and Venture Capital Association
Fidessa Next Phase of European Multi-Asset Strategy
Fidessa group plc (LSE:FDSA), a leading global provider of multi-asset trading systems, market data and global connectivity solutions, has added an enhanced multi-asset, pre-trade risk module for account-based trading across equities, futures and contracts for difference (CFDs) to its European sell-side trading platform. The move marks the latest phase in Fidessa’s comprehensive multi-asset strategy, and is a direct response to increasing asset convergence seen in both the US and Europe.
Homeland Security Presidential Directive 12.
Directive from the U.S. Federal Government requiring all Federal employees and contractors be issued with a uniform card by October 2006 for access to facilities and computer systems.
Human Resource Management
Support activity in the value chain analysis. Included are recruitment, hiring, training, development, and compensation of all personnel required for the entity or company.
Initial Performance Bond
Also known as "Initial Margin". Funds required when a futures position is opened.
International Accounting Standards No.19
Accounting standard requiring listed companies account for the financial condition of their pension funds on the balance sheet, particularly in the case of defined pension pension schemes.
LEAPS
Long-Term Equity Anticipation Securities
Liquidnet
Electronic marketplace that facilitates institutional equities trading for asset management firms worldwide.
Livedoor
Japanese company at the centre of a corporate governance scandal. Can be seen as the equivalent of World-Com or Enron as it is used as evidence of the need for a Japanese Sarbanes-Oxley type legislation on internal controls over financial reporting.
Margin Requirement for Options
Amount an uncovered (naked) option writer is required to deposit and maintain to cover a position. Calculated
Market Timing
US illegal practice of trading in mutual fund companies after the daily fixed pric, profiting from knowledg of subsequent market moves that had not been in the price.
Marketplace Rules 4310(c)(4)
NASDAQ rule requiring companies to have a $1 share price to remain on the market.
NYSE Euronext
Parent company of exchanges including New York Stock Exchange, the world's largest cash equities market; Euronext, the Eurozone's largest cash equities market; Liffe, Europe's leading derivatives exchange by value of trading; and NYSE Arca Options, one of the fastest growing U.S. options trading platforms.
NYSE Euronext Advanced Trading Equities in a Box
NYSE Euronext Advanced Trading Solutions, a world leader in low latency trading technology and division of NYSE Euronext (NYX), today announced an innovative software based solution that has the capability to comfortably handle 10 major US equities feeds on a single server with potential headroom of 3x current market peak capacity.
Physical Controls
A type of control activity. They involve the physical security of assets. They ensure adequate safeguards over access to assets and records.
Private Equity Intelligence
Research group specialising in the private equity arena.
Quadriserv Investors
Quadriserv, Inc. today announced the addition of Susquehanna Private Equity Investments, LLLP, an affiliate of Susquehanna International Group, LLP, and Round Table Partners to its investor ranks. These investing partners join existing institutional investors Bessemer Venture Partners, Merrill Lynch and Renaissance Technologies, LLC to fund the ongoing development and commercialization of Quadriserv’s innovative securities lending platform.
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.
RFID
Radio Frequency Identification
Section 104
Section of the Sarbanes-Oxley Act requiring the PCAOB to inspect registered public accounting firms on a regular basis
Section 302
Section of the Sarbanes-Oxley Act of 2002 requiring a certification to accompany each quarterly and annual report filed with the SEC.
Seibu Railway Co.
Japanese company at the centre of a corporate governance scandal. Can be seen as the equivalent of World-Com or Enron as it is used as evidence of the need for a Japanese Sarbanes-Oxley type legislation on internal controls over financial reporting.
SFAS 123R
FASB Statement of Financial Accounting Standards No. 123, Share-Based Payment. Requires companies to recognize compensation paid in the form of employee stock options as a cost in their financial statements.
Statement No. 123R
FASB Statement of Financial Accounting Standards No. 123, Share-Based Payment. Requires companies to recognize compensation paid in the form of employee stock options as a cost in their financial statements.
Information, data or a device to which an end-user or other device requires access
Terra Firma
UK private equity firm.
Tervela
Founded in 2004, Tervela delivers the next-generation communications infrastructure -- the message network -- designed and engineered to exceed the information dissemination and processing requirements of the world's most demanding financial services institutions. Addressing the challenges of market volume, volatility and visibility, Tervela invented the message switch to enable investment banks, hedge funds, exchanges and other data-intensive organizations to deliver consistent, outstanding and predictable performance -- even in the most demanding market conditions. The company is funded by Goldman Sachs, Sigma Partners, Acartha Group and North Hill Ventures. For more information, please visit http://www.tervela.com/.

Gain Capital Announces Algorithmic and FX Tools

GAIN Capital Group, today announced two new technology integrations designed to provide enhanced support for algorithmic trading and streamlined FX prime brokerage services for institutional customers. GAIN is now a liquidity provider to FlexTrade Systems' FlexFX platform, which provides robust algorithmic trading capabilities, and has also connected to Traiana's Harmony prime brokerage network. These new integrations, aimed at institutional clients such as hedge funds and investment managers, will build upon the existing technology relationship established between FlexTrade and Traiana in 2006.

"The integration of GAIN's trading platform with FlexTrade's FlexFX and Traiana's Harmony Network demonstrates our commitment to serving the needs of the institutional FX market," said Tom Levine, vice president of institutional sales for GAIN Capital. "Linking GAIN's trading platform directly into these innovative, best-of-breed FX tools directly addresses the growing appetite for FlexTrade's algorithmic trading and leverages the wide market acceptance of Traiana's Harmony Network for automating post-trade services," added Mr. Levine.

FlexTrade, the leader in broker-neutral algorithmic execution management systems, now offers direct access to GAIN's streaming price feed through FlexFX, providing users with a new liquidity source for their FX transactions. Clients using FlexTrade's algorithmic trading systems enjoy a complete STP connection to the Traiana Harmony prime brokerage network.
Traiana's Harmony Network is used by over 50 of the world's leading financial market participants and has become the market standard for post-trade processing of foreign exchange transactions. By connecting to the Traiana Harmony network, GAIN'S institutional clients and prime brokerage trading partners benefit from automated FX trade processing, including accurate, automated give-up notification and confirmation and seamless, straight through clearing and settlement.

Gerson Lehrman Group

Gerson Lehrman Group today announced that it will serve as a Premium Partner sponsor for the "Algorithmic Trading: Dynamic Portfolios, Optimal Executions, and Risk" conference, held at New York University's Skirball Center for the Performing Arts on October 3, 2008. The event is organized jointly by the Courant Institute of Mathematical Sciences-New York University, and Finance Concepts.

The conference, focusing on a rapidly growing area of quantitative finance, includes a keynote address, "Measuring and Modeling Execution Cost and Risk" by Dr. Robert Engle, 2003 recipient of the Nobel Prize in Economics.

FlexTrade Systems

Founded in 1996, FlexTrade Systems Inc. is the industry pioneer and global leader in broker-neutral algorithmic trading platforms and execution management systems for equities, foreign exchange and listed derivatives. FlexTRADER, our flagship platform for algorithmic trading, is widely viewed as unique in the industry for its high performance and multi-asset capability. With offices in North America, Europe and Asia, FlexTrade has a worldwide client base spanning more than 120 buy- and sell-side firms, including many of the largest investment banks, hedge funds, asset managers, commodity trading advisors and institutional brokers. Clients include Bank of America, Bank of New York, Barclays Global Investors, Jefferies & Company, Inc., Sanford C. Bernstein & Co., LLC, UBS Global Asset Management and Wachovia. For more information, visit FlexTrade Systems at www.flextrade.com