Copy of `The London Trade Group - Stock trading info`

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The London Trade Group - Stock trading info Category: Economy and Finance > London trading and exchange Date & country: 28/01/2011, UK Words: 312

acceptance
Applied to a Bill of Exchange, the person owing the debt signs or "accepts" the bill thereby acknowledging their indebtedness as evidenced by the bill.

acceptor
A debtor who signs a Bill of Exchange acknowledging or accepting his obligation to pay.

adr
See American Depositary Receipt

advance fee fraud
A form of financial fraud involving the payment of fees to intermediaries who promise to advance substantial sums of money. The fees, which are often small in proportion to the sums offered, are paid in advance of the transaction being completed. The victim usually never receives the sum promised.

advance payment guarantee
Issued by banks on behalf of their clients in the context of a large construction projects or export sales contract. The bank undertakes to repay an up-front payment that the client has received in the event that the client does not fulfil the terms of its contract.

advise
To notify the Beneficiary of Documentary Credit that it has been Opened in his favour.

advising bank
A bank that sends a Letter of Credit to the Beneficiary on behalf of the Issuing Bank.

agency fee
An annual fee payable to an agent or lead bank in a syndicated loan transaction for managing the loan and its lenders throughout the life of the transaction.

agent bank
A bank that leads, structures or manages certain types of loan and other transaction, often for a Syndicate of other lenders.

aim
Alternative Investment Market - the smaller companies market of the London Stock Exchange.

air waybill
A document used to evidence air transport of cargo. It is a confirmation that goods have been accepted for carriage

all risks insurance
Insurance cover for goods during transportation.

allongement
A piece of paper attached to a Bill of Exchange or Promissory Note allowing further space for stamps and Endorsements to be added.

amendment
A change to the terms of a documentary credit agreed and accepted by the parties to the credit.

american depositary receipt
Receipt for shares issued by a foreign company and held by a bank in the United States. ADRs may be listed on a stock exchange in the US enabling US investors to invest in the shares of foreign corporations.

awb
See Air Way Bill

back to back letter of credit
Simultaneously issued Letters of Credit where the credit standing of an ultimate Buyer of goods is used as security for issuing further credits in favour of other Beneficiaries in the supply chain.

bacs
Originally stood for Bankers Automated Clearing Services. Now called BACS Ltd., the company provides a payment and clearing system for Pounds Sterling in the UK.

barter
The exchange of goods for goods without the use of a unit of exchange such as currency.

bba
British Bankers Association.

beneficiary
The party to whom funds are payable under a Documentary Credit.

berne union
The International Union of Credit and Investment Insurers. Plays a central role in defining and governing the activities of the state Export Credit Agencies.

bid bond
May be called for by the employer in a construction contract. It covers the possibility of the bidder failing to perform if its bid is successful.

bi-lateral trading accounts
Reciprocal arrangements between two countries to trade together, maintaining records at their respective central banks of the exchange of goods and the values attaching to them in hard currency.

bill of exchange
A instrument of payment drawn by a seller ("the Drawer") on his buyer ("the Drawee") whereby the buyer accepts his obligation to pay a given or calculable sum of money at a fixed or determinable future time.

bill of lading
A document in one or more originals which is a receipt for goods accepted for carriage by sea. It lists information relating the cargo such as place of shipment, name of the carrying vessel, description of the cargo and its weight and also whether the goods are damaged in any way.

bills of exchange act 1882
The main piece of legislation in English Law governing Bills of Exchange and Promissory Notes. Promissory notes are deemed to be a subset of Bills of Exchange.

boot
Build, Own, Operate and Transfer. A structure used to finance revenue-driven projects.

bullet repayment
Repayment of a loan or other financing by one installment at the end of its life.

buy-back
Form of Countertrade where payment for capital plant and equipment is made, in whole or in part, from the proceeds of using the plant or equipment.

buyers credit
A loan to a buyer of goods to enable him to purchase imports on extended credit terms.

cac
Compagnie des Agents de Change. The index of largest companies listed on the Paris bourse.

carnet
A customs document allowing temporary importation of goods to a particular territory. Often used for temporary importation goods and equipment for exhibitions, concerts etc. May be issued by chambers of commerce.

cat bond
Catastrophe bond. An investment instrument issued to raise funds in respect of an insurance against a future catastrophe occurring, such as a hurricane for example.

cat mark
A standard introduced by the British government as its mark of approval for ISA investment products. The ISAs are measured against three criteria, Cost, Access and Terms.

cd
See Certificate of Deposit.

certificate of deposit
A document issued by a bank confirming that it has received a deposit of funds and when it will repay them.

certificate of inspection
See Inspection Agency.

certificate of origin
A certificate often issued by chambers of commerce attesting to the origin of manufactured goods.

certification
A process normally carried out by embassies, consulates, chambers of commerce or other official bodies whereby documents or signatures and other details borne by documents are confirmed as being authentic.

cesce
Compania Espanola de Seguros de Credito a la Exportacion. The Guaranteeing arm of the Spanish state export credit agency.

chaebol
South Korean manufacturing and trading conglomerate.

chaps
Clearing House Automated Payment System. A same day clearing system for high value payments in Pounds Sterling.

chips
Clearing House Inter-Bank Payments System. The real time New York-based clearing system which processes US Dollar payments.

cilc
Confirmed Irrevocable Letter of Credit. See Confirmation, Irrevocable and Letter of Credit.

cirr
Commercial Interest Reference Rate, a concessionary interest rate applied to ECA- supported export credit loans.

claused bill of lading
A Bill of Lading that indicates that a cargo was damaged, short-shipped or otherwise impaired at the time it was accepted for shipment.

clean on board bill of lading
A Bill of Lading evidencing that goods were shipped in good order. The opposite of a Claused Bill of Lading.

clean report of findings
An inspection certificate issued by Societe Generale de Surveillance (SGS) the Swiss based cargo inspection firm. See Inspection Agency.

club loan
A loan made by a small group of banks, a mini-Syndication.

cme
Chicago Mercantile Exchange

cmo
Central Money markets Office

cmr (note)
Convention relative au contrat de transport international de Marchandises par Route. A CMR Note is a transport document relating to carriage by road.

collection
An arrangement by which a bank forwards shipping documents provided by a seller to an overseas bank for collection by the buyer. The documents will be released against payment. Also known as a Documentary Collection.

combined transport document
A transport document covering two or more modes of transport by which goods may be moved.

comecon
The trading bloc formerly made up of the communist countries of eastern and central Europe.

commercial invoice
Invoice issued by the seller, addressed to the buyer, describing the goods or services supplied and showing the price and other details of the commercial transaction.

commitment
An undertaking by a bank that it will make funds available or issue its guarantee.

commitment commission / fee
A fee charged by a bank for committing to make funds available or to issue its guarantee. Commitment commissions are usually charged on the basis of the time during which the commitment is remains in place.

compliance
In banking and financial services this means complying with the rules or laws set out by a regulatory authority which govern the type of business in question.

confirmation
In the context of a Letter of Credit when a bank is requested by a bank Issuing a credit to inspect documents presented and make payment.

confirming bank
A bank which adds its Confirmation to a Letter of Credit.

confirming house
A company which makes payment to a supplier on behalf of a buyer because the buyer has insufficient credit strength for a bank to be prepared to issue a letter of credit on its behalf.

consensus
Proper name: Guidelines for Officially Supported Export Credits. An agreement between ECAs governing the terms of their support of export credit guarantees and interest rate subsidies.

consignee
The party to whom goods are consigned.

consignment note
Regarded by many banks as the same as a CMR Note.

consignor
The party who delivers goods to a freight carrier. It is often a manufacturer or exporter.

consob
Commissione Nazionale per la Società e la Borsa. Italian Stock Exchange body.

convergence
The process of aligning the economic performance of EMU member states prior to joining the single currency.

conversion rates
The irrevocable fixed exchange rates at which 11 European currencies converted to the euro.

correspondent bank
A bank in another financial centre with whom a bank may hold an account or co- operate on other forms of business. Thus a German bank may hold an account with a correspondent bank in New York to enable it to pay and receive US Dollars.

counterparty
A person or company with whom one transacts. E.g. banks involved in a foreign exchange transaction with each other are counterparties.

countertrade
The generic name for various forms of trade where goods are used to trade with rather than being simply bought or sold for cash.

country risk
The risk that a borrower, customer or obligor will not pay on due date because of events, often of a political nature, taking place in his country and which are beyond his control. Also referred to as Political Risk.

credit derivative
A financial structure added to or deriving from a credit risk to improve its standing.

credit risk
The risk that a borrower, customer or Obligor will not pay on due date.

currency swap
A financial instrument which enables one or a series of payments or cashflows to be exchanged for payments or cash flows in another currency.

dacon
Data on Consulting Firms. A database complied by the World Bank.

dax
Deutsche Aktien, the index of the largest companies listed on the Frankfurt stock exchange.

dbfo
Design, build, finance and operate. A structure used to finance revenue-driven projects.

delivered
A delivery term under which the seller prices his goods to include all costs including cost, insurance and freight, import duties and any other expenses up to the place where the buyers takes delivery, such as his works or warehouse. Refer to INCOTERMS for standard definition.

derivative
A financial structure such as a future or and option which derives from another financial asset. Thus for example equity derivatives derive from underlying equities.

disaggio
A subsidy used to balance the prices in an exchange of goods. Often used in countertrade transactions.

discount
To pay cash today for the benefit of receiving cashflows due for payment at a future time.

discount to yield
A method by which a future cashflow is discounted to a present value figure. By using a discount to yield an investor can calculate what the total return on his investment will be.

discrepancy
When a document presented under a Letter of Credit does not conform to its terms.

documentary credit
see LETTER OF CREDIT

documentry collection
see COLLECTION

documents against acceptance (d/a)
An arrangement by which a bank forwards shipping documents provided by a seller to an overseas bank for collection by the buyer. The documents will be released against Acceptance of a Bill of Exchange which will fall due for payment at a latter date.

documents against payment (d/p)
see COLLECTION

draft
A Bill of Exchange A bank draft is a form of cheque issued by a bank.

drawdown
Drawing made by a borrower under a loan facility. Used as both a noun and a verb.

drawee
The party to a Bill of Exchange from whom payment will be due in the future and on whom the Bill is drawn. Also known as the Acceptor.

drawer
The party to a Bill of Exchange to whom payment will be due and who draws the Bill.

dtb
Deutsche Terminbörse former name of the Frankfurt Stock Exchange now named Eurex.

eba
Euro Banking Association. A group of banks, formerly known as the ECU Banking Association, which has put in place a payment system to handle payments in euro.

ebrd
European Bank for Reconstruction and Development. London-based development bank set up to assist the countries of eastern and central Europe return to market economies.

eca
See Export Credit Agency.

ecb
European Central Bank which is responsible for monetary policy of the Eurozone countries including setting interest rates.

ecgd
Export Credits Guarantee Department. The state export credit agency of the United Kingdom.