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Topic: Equity derivative


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In the News (Thu 25 Apr 19)

  
  Equity derivative - Wikipedia, the free encyclopedia
An equity derivative is a derivative whose pay-offs depend on the value of an underlying share, basket of shares, or stock market index.
These are traded in the wholesale market, but are often used as the basis of guaranteed equity products, which offer retail buyers a participation if the equity index rises over time, but which provides guaranteed return of capital if the index falls.
Forward prices of equity indices are calculated by computing the cost of carry of holding a long position in the consitutuent parts of the index.
en.wikipedia.org /wiki/Equity_derivative   (395 words)

  
 f_summary7.htm
Non-marketable equity securities are subject to a periodic impairment review, including assessment of the investee's financial condition, the existence of subsequent rounds of financing and the impact of any relevant contractual preferences, as well as the investee's historical results of operations, projected results and cash flows.
For these derivatives, the effective portion of the gain or loss is reported as a component of other comprehensive income in stockholders' equity and is reclassified into earnings in the same period or periods in which the hedged transaction affects earnings, and within the same income statement line item.
In addition to the debt and equity investments that are offset by related derivatives, a portion of the company's trading asset portfolio consists of equity securities that are maintained to generate returns that partially offset changes in liabilities related to certain deferred compensation arrangements.
www.intel.com /intel/annual01/f_summary7.htm   (3963 words)

  
 Xenomorph Business Line Solution for Equity Derivatives   (Site not responding. Last check: 2007-10-08)
Many equity derivative specialists innovating new pricing models have good modelling capabilities, but lack a time-enabled data management environment that allows any type of financial product to be back–tested and priced at any point in history in order to reduce model risk.
Many equity derivative divisions face the unfortunate situation where trading, risk and IT departments are in conflict with different priorities and different timescales for delivery.
Equity derivative institutions require solutions that can automate data management so that all staff can focus on delivering value to the business in the most efficient manner possible.
www.xenomorph.co.uk /solutions/business/equityderivatives/overview-marketrequirements.shtml   (496 words)

  
 SG Warrants - Equity Derivative House of the Year   (Site not responding. Last check: 2007-10-08)
Equity derivatives are often seen as a French speciality and, as if to prove that point, the award, which was launched, this year, has gone, to a French house.
Christophe Mianné, Global Head of Equity Derivatives at SG, said "winning the Risk awards for the second time in a row is a great accomplishment for our teams and reflects their strong client commitment".
Christophe Mianné, Global Head of Equity Derivatives at SG, said "the IFR equity derivatives house of the year award is a great mark of recognition for SG and highlights the excellence and dedication of our teams and depth of their client relationship."
www.warrants.com /home/awards.htm   (1089 words)

  
 Untitled Document
Equity derivative products are playing an important role in the restructuring of European companies and investment institutions.
Girish Reddy, the Goldman partner in charge of marketing equity derivatives to institutional investors, has had as successful a year as his colleagues in the ECM division.
Hull is a leading market-maker of exchange-traded equity derivatives as well as a market-maker in the cash equity markets.
www.riskpublications.com /riskawards/riskawards-gs.htm   (900 words)

  
 FASB: Transition Provisions: Indexed Debt Hedging Equity Investment
Statement 133 defines derivative instruments based on their characteristics; the resulting definition includes certain instruments that were not previously separately accounted for as derivatives.
Upon transition, the embedded equity-based derivative that (1) was not previously separately accounted for as a derivative under generally accepted accounting principles before the date of initial application of Statement 133 and (2) meets the definition of a derivative under Statement 133 qualifies for the cumulative-effect-type adjustment described in paragraph 52(b) (as amended).
The embedded derivative, subsequent to the adoption of Statement 133, may be designated as the hedging instrument in either a fair value or cash flow hedging relationship, provided the appropriate criteria are met.
www.fasb.org /derivatives/issuej13.shtml   (793 words)

  
 FRB: Legal Interpretations -- Application of section 9 of the Federal Reserve Act regarding equity hedges for state ...
The OCC also recently determined that a national bank, subject to certain conditions and OCC review and approval, may acquire equity securities solely for the purpose of hedging the bank’s exposure arising from customer-driven equity derivative transactions lawfully entered into by the bank.
These conditions and restrictions provide that, among other things, a state member bank may acquire an equity security solely for purposes of hedging the bank’s exposure arising from one or more equity derivative transactions entered into by the bank with, and at the request of, an unaffiliated third party.
An “equity derivative transaction” is a contract that provides for the bank to pay or receive an amount that is based, at least in part, on the price or total return of an individual equity security, a group of equity securities, or an index of equity securities.
www.federalreserve.gov /boarddocs/legalint/FederalReserveAct/2002/20020221/default.htm   (824 words)

  
 Amazon.com: The Handbook of Equity Derivatives (Wiley Series in Financial Engineering): Books: Jack Clark ...   (Site not responding. Last check: 2007-10-08)
With equity derivatives comprising one of the most important components of the capital markets, it's more crucial than ever for every financial professional, specialist and nonspecialist alike, to understand how derivative instruments behave, how they're structured, and how to use them profitably.
In nonmathematical language, the book provides a clear introduction to equity derivatives, including the fundamentals and history of options, basic equity structures, and pricing determinants, along with a historical perspective on their evolution.
Once, equity derivatives were exotic instruments relegated to the hands of specialists.
www.amazon.com /exec/obidos/tg/detail/-/0471326038?v=glance   (1769 words)

  
 Equity Derivative - Slinkyslate.com
The act of using options right equity derivative awards by the warrant is referred to as Exercise varant...
Equity derivative awards ask warrants warrants financial tools sg warrants sgcapels warrants_au.
A top-tier bank is currently recruiting for its fund of funds and equity derivative structuring teams...
www.slinkyslate.com /equity-derivative.htm   (578 words)

  
 FDIC: Inactive FIL-141-2001: Financial Institution Letters
In this situation, the carrying value of the host contract and the fair value of the embedded derivative on the report date may be combined and presented together on the balance sheet in the asset or liability category appropriate to the host contract.
As for the separate freestanding derivative contracts the bank enters into to manage its market risk, these derivatives must be carried on the balance sheet as assets or liabilities at fair value and "marked to market" at least quarterly with changes in their fair value recognized in earnings.
The fair value of the freestanding derivatives should not be netted against the fair value of the embedded equity derivatives for Call Report balance sheet purposes because these two derivatives have different counterparties.
www.fdic.gov /news/news/inactivefinancial/2002/fil02141a.html   (3631 words)

  
 FDIC: Law, Regulations, Related Acts - Rules and Regulations
Derivative contracts not explicitly covered by any of the columns of the conversion factor matrix are to be treated as "other commodities."
To avoid double counting such exposures in the assessment of capital adequacy and, perhaps, assigning inappropriate risk weights, counterparty credit exposures arising from the types of instruments covered by these guidelines may need to be excluded from balance sheet assets in calculating a bank's risk-based capital ratio.
However, voting common stockholders' equity capital generally will be expected to be the dominant form of Tier 1 capital and banks should avoid undue reliance on other Tier 1 capital elements.
www.fdic.gov /regulations/laws/rules/2000-4650.html   (3821 words)

  
 SG Warrants: SG securities London ltd, Société Générale, SG, financial tools, live quotes
SG, the corporate and investment banking arm of Société Générale, has been named "Equity Derivatives House of the Year" 2005 by Risk Magazine, confirming that SG maintains its lead in the highly competitive market for equity and index derivatives.
A major player in the equity options business since the mid-1980s, SG is recognized for leading the market in the development of fund-linked and principal-guaranteed products, and for providing attractive market solutions with an excellent risk profile to investors and corporates in all regions.
The Equity Derivatives team of SG CIB is the largest in the world.
uk.warrants.com /help/awards.php   (768 words)

  
 Equity derivative -- Facts, Info, and Encyclopedia article   (Site not responding. Last check: 2007-10-08)
Equity derivatives are (Click link for more info and facts about financial derivative products) financial derivative products whose value is dependent on the value of an underlying (Assets belonging to or due to or contributed by an individual person or group) share or group of shares.
For example, the right but not the obligation to cash delivery based on the difference between the designated (Click link for more info and facts about strike price) strike price, and the value of the designated index at (State of being mature; full development) maturity.
(Click link for more info and facts about Forward price) Forward prices of equity indices are calculated by computing the cost of carry of holding a long position in the consitutuent parts of the index.
www.absoluteastronomy.com /encyclopedia/e/eq/equity_derivative.htm   (511 words)

  
 [No title]
In determining the current credit exposure for multiple derivative contracts executed with a single counterparty, a bank may net derivative contracts subject to a qualifying bilateral netting contract by offsetting positive and negative mark-to-market values, provided that: (1) The qualifying bilateral netting contract is in writing.
Once the credit equivalent amount for a derivative contract, or a group of derivative contracts subject to a qualifying bilateral netting contract, has been determined, that amount is assigned to the risk category appropriate to the counterparty, or, if relevant, the guarantor or the nature of any collateral.
For derivative contracts that are subject to a qualifying bilateral netting contract, the current exposure is, generally, the net sum of the positive and negative mark-to-market values of the contracts included in the netting contract (or zero if the net sum of the mark-to-market values is zero or negative).
www.occ.gov /ftp/bulletin/95-50a.txt   (12696 words)

  
 Derivative Design; Equity Derivatives Consultancy/Software.   (Site not responding. Last check: 2007-10-08)
Derivative Design is a service driven consulting and software company specialising in problem solving for all institutions which are involved with, or exposed to Equity Derivatives.
It is Derivative Design's mission to provide its clients with a profound understanding of risk management, pricing methodology and know-how of a fast moving Equity Derivative Market.
We cater to institutions which are end-users of Equity Derivatives as well as to the more sophisticated product providers and risk managers.
www.derivative-design.co.uk   (214 words)

  
 International Accounting Standards Board (IASB) Agenda: IAS 39 Amendments
If the derivative requires net cash or net share settlement, or gives the counterparty a choice of net cash or net share settlement, is a derivative asset or liability (not an equity instrument).
If the derivative gives the issuing entity a right to require net cash or net share settlement is a derivative asset or liability (not an equity instrument) unless the issuer has an established history of settling such contracts through gross physical settlement.
Changes in the fair value of a derivative that is fully indexed to the price of an entity's own shares and that will result in the receipt or delivery of a fixed number of own shares in exchange for a fixed amount of cash should not be recognised in the financial statements.
www.iasplus.com /agenda/ias39rev.htm   (8843 words)

  
 ISDA EQUITY DERIVATIVES DEFINITIONS AND CONFIRMATIONS
The publication of this Master Confirmation is intended to encourage wholesale adoption of the 2002 ISDA Equity Derivatives Definitions (the “2002 Definitions”) and to simultaneously address large numbers of unsigned equity derivatives confirmations amongst the dealer community.
This Master Confirmation is not intended to be a master confirmation for OTC equity derivative transactions with entities that are not dealers, as many dealers’ elections under the 2002 Definitions differ depending on the particular risks that they are hedging.
The 1996 ISDA Equity Derivatives Definitions are intended for use in confirmations of individual transactions governed by agreements such as the 1992 ISDA Master Agreements.
www.isdadocs.org /publications/isdaequityderivdefconfir.html   (962 words)

  
 Equity derivative - Encyclopedia.WorldSearch   (Site not responding. Last check: 2007-10-08)
Equity derivatives are financial derivative products whose value is dependent on the value of an underlying share or group of shares.
Indices for OTC products are broadly similar, but offer more flexibility.
Structured Equity Derivatives: The Definitive Guide to Exotic Options and Structured Notes
encyclopedia.worldsearch.com /equity_derivatives.htm   (396 words)

  
 BS&R: Acquiring Stock to Hedge Equity Derivative Transactions (02/27/2002): FRBSF
The Federal Reserve Board will not apply section 9 of the Federal Reserve Act to prohibit a state member bank from acquiring equity securities to hedge the bank's customer-driven equity derivative transactions if such purchases are made in accordance with the conditions and restrictions applicable to national banks.
Any state member bank that seeks to acquire equity securities to hedge the bank's equity derivative transactions must receive the prior approval of the Board's Director of Banking Supervision and Regulation.
In addition, a state member bank may engage in equity hedging activities only to the extent permitted by state law, and the bank must comply with any applicable state notice or approval requirements.
www.frbsf.org /banking/letters/2002/0227.html   (178 words)

  
 equity derivative system   (Site not responding. Last check: 2007-10-08)
Derivatives.com combines the industrial strength analytics of the world's preeminent real-time derivatives trading and portfolio risk management software with a state-of-the-art online services bureau.
Trio Equity Derivatives, a subsidiary of Trio Holdings plc, are leading equity option brokers in the City, with offices in the shadow of St Paul's Cathedral.
Trio Equity Derivatives have developed, in-house, a sophisticated system, which captures details of all equity derivative sales on a...
www.financial-repeater1.com /articles/34/equity-derivative-system.html   (455 words)

  
 12-18-00, Press Release   (Site not responding. Last check: 2007-10-08)
As in the case of the OCC’s decision to allow national banks to hold equities as part of their equity derivatives business, it appears that at least two of these decisions were made in secret, with dissent from key OCC staff, and in order to obtain regulatory advantage over the Federal Reserve.
Accordingly, I would request that the GAO examine the basis for the OCC’s decision to permit national banks to purchase equity securities to hedge their equity derivative transactions and give the Committee a legal opinion as to whether this activity is permissible under existing law.
Accordingly, I would request that your office examine the basis for the OCC’s decision to permit national banks to purchase equity securities to hedge their equity derivative transactions and give the Committee a legal opinion as to whether this activity is permissible under existing law.
financialservices.house.gov /banking/121800pr.htm   (8403 words)

  
 CityJobs Search Results
A Derivatives Open Evening for Operations Professionals Barclays Capital is IFR magazine's 'Bank of the Year' and Risk magazine's 'Derivatives House of the Year'.
Derivative Margin and Collateral Management The primary focus for the applicant is to mitigate Lehman Risk.
Equity and FX derivative pricing libraries, you will have excellent C++ skills and a keen awareness of the practical implications of running production production systems.
www.cityjobs.com /cgi-bin/advsearch?search_emp_mkt_cd=FI&skill_include=Derivatives   (1453 words)

  
 Equity Derivative Strategies Replace Some Stock Issues| Print Bowne Review   (Site not responding. Last check: 2007-10-08)
Equity derivatives also meet the need for discretion, since selling large blocks of equity in the open market might send out a warning signal and depress stock prices.
The popularity of this classic equity collar has decreased with falling interest rates, since banks find it difficult to charge enough interest to make the deals cost-effective.
In weighing the pros and cons of equity derivative strategies, the author suggests considering whether the cost of debt associated with each will exceed the rate of appreciation on assets.
www.bowne.com /newsletters/friendly.asp?storyID=675   (513 words)

  
 Wiley::Equity Derivatives: Theory and Applications
Written by the quantitative research team of Deutsche Bank, the world leader in innovative equity derivative transactions, this book acquaints readers with leading-edge thinking in modeling and hedging these transactions.
Equity Derivatives offers a balanced, integrated presentation of theory and practice in equity derivative markets.
The book covers: the newest and fastest-growing class of derivative instruments, fund derivatives; cutting-edge developments in equity derivative modeling; new developments in correlation modeling and understanding volatility skews; and new Web-based implementation/delivery methods.
www.wiley.com /WileyCDA/WileyTitle/productCd-0471436461.html   (249 words)

  
 Jobs - Global Equity Derivative Documentation - UK [ United Kingdom ], London
This is an outstanding opportunity to be involved in all facets of the Tier 1 outstanding population.
The team's primary goal is to achieve maximum benefit to this major European Bank in terms of receipt/despatch of executed documentation, dispute resolution and management of unsigned documentation risk in as short a time as possible.
Knowledge of the 1996 and 2002 ISDA Equity Derivatives Definitions and the 2000 ISDA Definitions is preferable though not essential.
www.tiptopjob.com /search/jobs/1129626_job.asp   (246 words)

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