Commodity exchange

Commodity exchange

Industry: Financial services

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Commodity exchange

co-location

Financial services; Commodity exchange

The placement of servers used by market participants in close physical proximity to an electronic trading facility's matching engine in order to facilitate high-frequency trading.

time decay

Financial services; Commodity exchange

The tendency of an option to decline in value as the expiration date approaches, especially if the price of the underlying instrument is exhibiting low volatility.

electronic trading facility

Financial services; Commodity exchange

A trading facility that operates by an electronic or telecommunications network instead of a trading floor and maintains an automated audit trail of transactions.

exchange

Financial services; Commodity exchange

A central marketplace such as a designated contract market with established rules and regulations where buyers and sellers meet to trade futures and options contracts or securities.

spark spread

Financial services; Commodity exchange

The differential between the price of electricity and the price of natural gas or other fuel used to generate electricity, expressed in equivalent units.

five against bond) spread (fab)

Financial services; Commodity exchange

A futures spread trade involving the buying (selling) of a five-year Treasury note futures contract and the selling (buying) of a long-term (15-30 year) Treasury bond futures contract.

clearing mandate

Financial services; Commodity exchange

The requirement in the Dodd-Frank Act that certain swap transactions be cleared through a derivatives clearing organization unless the transaction is subject to the end-user exception.