Securities Operations: A Guide to Trade and Position Management

Glossary of Terms

This glossary contains many of the terms mentioned within the book, but additionally contains frequently used terms not used within the book, but which may be of use to the reader. Words and phrases in italics within the description of terms indicate that an associated glossary item exists.

Account Settlement	The practice of applying a predefined value date to all trades executed within a predefined period of days. The alternative is rolling settlement.
Accrued Interest	On interest bearing bonds, the accumulated interest since the most recent coupon payment date and payable at the next coupon payment date.
Advisory	A communication received by a securities trading organisation advising the details of a trade that a counterparty believes it has executed with the STO, for which the STO has not issued a matching message (e.g. a settlement instruction)
Agency Trading	Effecting the purchase or the sale of securities (on behalf of clients) in the capacity of an agent.
Agent for Investors	An organisation that acts as an intermediary between its client and a market participant with whom the agent trades. Agents usually do not hold securities positions on their own behalf. See Proprietary Trading.
American Depository Receipts	Documents that represent shares held in overseas companies and which enable U.S. investors to invest in such securities in a tax-efficient manner. ADRs are traded in their own right at a US Dollar price. See Global Depository Receipts. ...