Author Archives: alexam212

“What Is” A Broker-Dealer?

In securities trading, the term broker-dealer refers to individuals or firms that facilitate the buying and selling of securities. The “broker” half of the term refers to when firms act as agents for clients. The “dealer” role encompasses those times … Continue reading

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“What Is” Corporate Governance?

Corporate governance is defined as the framework of rules that provide direction for a company’s business functions. These guidelines helped executives, board members and other managers run a company in order to achieve its long-term goals and manage crises. Ultimately, … Continue reading

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“What Is” Direct Market Access (DMA)?

In global securities trading, the term direct market access (DMA) refers to the complex of networking, routing and software facilities that allow buy- side firms to cost-effectively execute transactions via regional and global trading venues. DMA services enable buy-side firms … Continue reading

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“What Is” ISDA?

The International Swaps and Derivatives Association, a.k.a. ISDA, was established in 1985 by those in the privately negotiated, over-the-counter (OTC) derivatives trading markets. ISDA wants to achieve three mains goals: reduce counterparty credit risk, increase market transparency and improve the … Continue reading

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“What Is” Operational Risk?

Operational risk is classified as a form of loss caused by a company’s internal processes, which can be failures in a financial services company’s systems and people. In addition, operational risk can include legal actions or environmental events that serve … Continue reading

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“What Is” an Exchange?

A key component of financial services is the buying and selling of investment instruments—chief among them is the trading of equity also known as stocks. The meeting place for buyers and sellers is an exchange, defined as a marketplace for … Continue reading

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“What Is” Performance Measurement?

Performance measurement is the process by which investors and others collect and examine information about financial services firms and their capabilities to make a profit. In general, the performance measurement department of a financial services firm such as a hedge … Continue reading

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“What Is” The Flash Crash?

The Flash Crash, which happened after 2:30 pm EST on May 6, 2010, was a sudden, massive drop and recovery in securities prices. During the crash, the Dow Jones Industrial Average fell by nearly 1,000 points and bounced back within … Continue reading

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“What Is” the Sell Side?

The sell side consists of financial services firms such as broker-dealers, investment banks and market makers that offer securities and investment services to money managers working on behalf of pension funds, mutual funds and insurance companies, also known as the … Continue reading

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“What Is” the Buy-Side?

 In short, the buy side consists of firms looking to purchase assets or securities from the sell side, which offers these assets and other investment opportunities. The buy side mostly refers to the major institutions such as pension funds and … Continue reading

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