Derivative security

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Derivative security

A financial security such as an option or future whose value is derived in part from the value and characteristics of another security, the underlying asset.

Derivative Security

Futures, forwards, options, and other securities except for regular stocks and bonds. The value of nearly all derivatives are based on an underlying asset, whether that is a stock, bond, currency, index, or something else entirely. Derivative securities may be traded on an exchange or over-the-counter. Derivatives are often traded as speculative investments or to reduce the risk of one's other positions. Prominent derivative exchanges include the Chicago Mercantile Exchange and Euronext LIFFE.
References in periodicals archive ?
As per the reports, the Reserve Bank of India (RBI) has given companies the flexibility to close or partially exit their notional derivative contracts with banks before maturity.
bank holding companies and just 8 percent of state-chartered member banks reported any positions in either exchange-traded or OTC derivative contracts.
Standardized weather-indexed-OTC derivative contracts with A-rated financial capacity to hedge revenue and supply costs influenced by temperature, wind and precipitation.
Adjusted EBITDA, as presented herein, is EBITDA excluding asset impairment, interest income, loss (gain) on derivative contracts net of cash (paid) received on settlement of derivative contracts, loss (gain) on sale of assets, transaction costs, legal settlements, consent solicitation costs, severance, loss on extinguishment of debt and other various non-cash items (including non-cash portion of noncontrolling interest and stock-based compensation).
The Company will assist in the introduction of derivative contracts based on its indices, enabling new futures, options and over-the-counter products geared to sophisticated institutions and traders.
27 per share) on the mark-to-market of financial commodity derivative contracts and net gains on asset dispositions of $3.
Filled with in-depth insight and practical advice, Derivatives provides readers with a comprehensive understanding of derivatives markets, derivatives valuation, and risk management using derivative contracts.
EOG has entered into additional crude oil and natural gas derivative contracts since filing its Quarterly Report on Form 10-Q dated November 6, 2013.
Important factors known to Ceridian that could cause such material differences are identified and discussed from time to time in Ceridian's filings with the Securities and Exchange Commission, including matters arising from the SEC investigation, the prior restatements of our financial statements, the investigation conducted by the Audit Committee, the pending shareholder litigation, the failure to timely comply with Section 404 of the Sarbanes-Oxley Act of 2002, volatility associated with Comdata's fuel price derivative contracts and those factors which are discussed in Ceridian's Annual Report on Form 10-K, for the year ended December 31, 2005, and Quarterly Report on Form 10-Q for the quarter ended March 31, 2006, which factors are also incorporated herein by reference.
Since the IOSCO PRA Principles were issued last year, Platts launched a company-wide initiative to ensure its alignment with those principles for assessments used for oil derivative contracts by October 2013, including engaging an external auditor to conduct an Assurance Review.
The driver of the Rating Watch Positive for Duke Capital is the significant reduction in business risk achieved over the past two years, primarily due to the successful disposition of its merchant generation fleet and associated derivative contracts, and not the separation from Duke Energy, which Fitch largely views as credit neutral.