Tag: featured

Where will the next European Banking Authority be located?

Where will the next European Banking Authority be located?

Financial Markets Explained
As the UK prepares to leave the EU, there are many questions on how the Brexit will take place. Among a number of things is the question on the future of the European Banking Authority (EBA). This article digs deeper into what the EBA is, why EU member nations are fighting for hosting the EBA. We also look at some of the key EU countries where the EBA is most likely to move, if it moves out of the City of London. The European Banking Authority (EBA) is an independent financial authority for the European Union (EU). The EBA is tasked to contribute to the creation and maintenance of single rulebook in banking in the EU. Established in 2011, the institution specializes in bringing uniformity among all the banking institutions based on the European Union, going in line with the principle...
What is a Multilateral trading facility (MTF)?

What is a Multilateral trading facility (MTF)?

Trading Articles
Multilateral trading facility  or MTF is a regulatory term in Europe for non-exchange financial trading venue. A non-exchange financial trading venue is an alternative to the more traditional stock or futures exchange. For example, forex is often traded over-the-counter with no centralized trading exchange. However, orders can be executed and matched at an MTF venue. An MTF works in the same way as a stock or a futures exchange and brings together buyers and sellers. In the United States, it is also referred to as an Alternative Trading System. A multilateral trading facility or MTF can be used as a stand alone entity to the stock exchanges. An MTF isn't as complex as one might think and one of the simplest examples is that of LMAX Exchange, which is allows forex trader access to CFD
What is happening to the bond markets after a Trump victory?

What is happening to the bond markets after a Trump victory?

Financial Markets Explained
The bond markets were in the news for the two straight weeks since the U.S elections held on November 8th 2016. After an initial rally, bond markets fell sharply and continued to fall in the following days making it one of the most talked about asset in the financial media. It wasn't just U.S bonds but also across the world, including Japan and Europe. For example, yields on the 10-year government bonds in Japan rose to 0.035% on Friday, November 18th, 2016, up from 0.005% just the day before. It was the first time that yields rose. Even far flung economies such as Singapore, Malaysia, Thailand, bond yields spiked. In bonds, yields run inversely to prices; meaning that when bond prices fall, yields rise. Learn the basics of bonds here. Blame Trump's policies for rise in bond
What are bonds. How to trade bonds online

What are bonds. How to trade bonds online

Financial Markets Explained
Bonds are the lesser known financial investment products in comparison to stocks or forex. This is largely thanks to the fact that trading in bonds offer high level of security and low returns as compared to stocks which works in the opposite. The most important thing to know about bonds is that they work the same way as loans albeit on a larger scale and volume. Bonds are debt instruments, as compared to stocks which are equity instruments. During bankruptcy, bond holders are given preference before equity holders. This is also known as seniority. Seniority pertains to the order of repayment in the event of a sale or bankruptcy of the issuer. As a thumb rule, senior debt holders must be repaid first before repaying subordinated or junior debt. What are bonds A bond is basically a deb
What is the ISM Manufacturing PMI Indicator

What is the ISM Manufacturing PMI Indicator

Economic Indicators
The Institute for Supply Management (ISM) releases a monthly economic report known as the ISM manufacturing Purchase Manager Index (PMI). The ISM manufacturing PMI for short is one of the leading economic indicators which give an early glimpse into the health of the manufacturing sector in the US. The ISM was formerly known as National Association of Purchasing Management (NAPM). The ISM has been conducting its survey since the end of World War II. In this article, you will learn what the ISM manufacturing PMI report is, what the components of the report are, how to read the ISM manufacturing PMI report and how it affects the markets. What is the ISM manufacturing PMI report? The ISM manufacturing PMI is an economic indicator that reports the economic health of the manufacturing secto...