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Swap Term

The lifetime of a swap at the end of which parties to the swap no longer pay obligations since it ceases to...

Swap Tenor

The lifetime of a swap at the end of which parties to the swap no longer pay obligations since it ceases to...

Swap DV01

A swap dollar value of one basis point (0.01%). It refers to the change in the present value of a swap in response to...

MOC Algo

A trading algorithm (algo) that targets the closing price, and hence the name “market-on-close (MOC) algo”. This algorithm allows electronic traders to capture the last...

Asset-Backed Financing

Islamic banks lend funds based on trade (i.e., real economic activities) rather than pure finance. In other words, they act as...

Market Maker

For a specific option, it is an individual trader who stands ready to quote both a bid and an offer price on the...

Accounting Mismatch

A measurement or recognition inconsistency that arises from using different measurement models for asset or liability values or different recognition...

Embedded Derivative

A derivative that is added to a financial asset or financial liability or generally to a non-derivative contract (also known...

Warrant Intrinsic Value

A component of the value of a warrant (warrant value) that is measured as the difference between its underlying share price and...

M2M

It stands for marking to market; the practice which is used to revalue a financial instrument, in general. In the...