Market Data Explained

■ Settlement conventions – rules by which securities transactions must be com-

pleted through to full exchange and accounting (Settlement varies by instrument

type and geography)

■ Regulatory details – rules and conventions mandated by regulators of individual

markets.

RATINGS

The value of publicly traded financial instruments is directly affected, sometimes vio-

lently, by evaluations issued by rating agencies. These ratings are issued at two levels:

1. Security – evaluation of the security (primarily fixed income) and associated risk

of default in servicing the payment stream

2. Corporate – an assessment of the creditworthiness of the issuer.

As ratings ...