Legal Dictionary

Search results for: “futures”

  • Derivative Instruments

    Contracts such as options and futures whose price is derived from the price of the underlying financial asset….

  • Delivery Notice

    The written notice given by the seller of his intention to make delivery against an open, short futures position on a particular date. Related: notice day…

  • Delivery Options

    The options available to the seller of an interest rate futures contract, including the quality option, the timing option, and the wild card option. Delivery options make the buyer uncertain of which Treasury Bond will be delivered or when it will be delivered….

  • Delivery Points

    Those points designated by futures exchanges at which the financial instrument or commodity covered by a futures contract may be delivered in fulfillment of such contract….

  • Delivery Price

    The price fixed by the Clearing house at which deliveries on futures are in invoiced; also the price at which the futures contract is settled when deliveries are made….

  • Cross Hedging

    The practice of hedging with a futures contract that is different from the underlying being hedged….

  • Convergence

    The movement of the price of a futures contract toward the price of the underlying cash commodity. At the start, the contract price is higher because of the time value. But as the contract nears expiration, the futures price and the cash price converge….

  • Conversion Factors

    Rules set by the Chicago Board of Trade for determining the invoice price of each acceptable deliverable Treasury issue against the Treasury Bond futures contract….

  • Contract Month

    The month in which futures contracts may be satisfied by making or accepting a delivery. Also called value managers, those who assemble portfolios with relatively lower betas, lower price-book and P/E ratios and higher dividend yields, seeing value where others do not….

  • Commission House

    A firm which buys and sells future contracts for customer accounts. Related: futures commission merchant, omnibus account….

  • Commodities Exchange Center (Cec)

    The location of five New York futures exchanges: Commodity Exchange, Inc. (COMEX), the New York Mercantile exchange (NYMEX), the New York Cotton Exchange, the Coffee, Sugar and Cocoa exchange (CSC), and the New York futures exchange (NYFE). common size statement A statement in which all items […]

  • Clearinghouse

    An adjunct to a futures exchange through which transactions executed its floor are settled by a process of matching purchases and sales. A clearing organization is also charged with the proper conduct of delivery procedures and the adequate financing of the entire operation….

  • Cftc

    The Commodity Futures Trading Commission is the federal agency created by Congress to regulate futures trading. The Commodity Exchange Act of 1974 became effective April 21, 1975. Previously, futures trading had been regulated by the Commodity Exchange Authority of the USDA….

  • Cheapest To Deliver Issue

    The acceptable Treasury security with the highest implied repo rate; the rate that a seller of a futures contract can earn by buying an issue and then delivering it at the settlement date….

  • Chicago Mercantile Exchange (Cme)

    A not-for-profit corporation owned by its members. Its primary functions are to provide a location for trading futures and options, collect and disseminate market information, maintain a clearing mechanism and enforce trading rules….