Finan Words

Trading Pit A specially constructed area on the trading floor of some exchanges where trading in a futures contract is conducted. On other exchanges, the term ring designates the trading area for a commodity. Chicago Mercantile Exchange An exchange which trades a wide range of currency futures and options, interest rate futures and options, commodity futures and options, and share index futures and options. International Monetary Market The part of the Chicago Mercantile Exchange which specializes in currency and Eurodollar futures. Clearing corporation The institution that acts as the counterparty to both sides of all futures market transactions, guaranteeing that the parties to the contract will meet their obligations. Margin A minimum down payment legally required to purchase a stock. 2. A deposit placed by the buyer and seller of a futures contract with the clearing corporation. LIFFE London International Financial Futures and Options Exchange What Does New York Stock Exchange - NYSE Mean? A stock exchange based in New York City, which is considered the largest equities-based exchange in the world based on total market capitalization of its listed securities. Formerly run as a private organization, the NYSE became a public entity in 2005 following the acquisition of electronic trading exchange Archipelago. The parent company of the New York Stock Exchange is now called NYSE Euro next, following a merger with the European exchange in 2007. COMEX – Commodity Exchange. The leading US exchange for metals futures and options trading. What Does Mark To Market - MTM Mean? 1. The act of recording the price or value of a security, portfolio or account to reflect its current market value rather than its book value. 2. In terms of mutual funds, a MTM is when the net asset value (NAV) of the fund is valued upon the most current market values.