Discretion

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Discretion

Freedom given to the floor broker by an investor to use his judgment regarding the execution of an order. Discretion can be limited, as in the case of a limit order that gives the floor broker some distance from the stated limit price to use his judgment in executing the order. Discretion can also be unlimited, as in the case of a market-not-held order. See also: Market Not Held Order.

Discretion

The ability to make decisions on one's own without the need to consult others. For example, a discretionary account gives a broker the right to make significant investment decisions without permission from or even consultation with the account's owner. Likewise, certain investments give an investor more discretion than others. An option contract allows but does not require the holder to buy (or sell) the underlying, while a futures contract requires the exchange to take place.
References in periodicals archive ?
One bold discretion gaming strategy agencies employ is to pull out the nondiscretion claim only when needed to stave off the ESA and NEPA and put it back in the box for all other purposes.
For example, in the most recent of FEMA's trio of no discretion claim losses involving its flood insurance program, (235) the court noted that while FEMA on the one hand argued lack of discretion for purposes of ESA consultation, a finding that the agency indeed does enjoy "discretion to consider endangered and threatened species ...
The apex bank said, 'These documents lay down how the exercise of options and discretions in banking legislation is to be harmonized in the euro area.
The Basel Committee of banking supervisors from nearly 30 countries published six examples of capital requirements on Tuesday where national regulators will no longer have discretion over whether to apply them or not.
"National discretion allows countries to adapt the Basel standards to reflect differences in local financial systems," the committee said in a statement on Tuesday.
(179) Most jurisdictions use the abuse of discretion standard of review for hearsay rulings as well.
In spite of the fact that courts using this standard emphasize the "fact- and case-specific" determinations, a few of the appellate courts ordinarily reviewing admission of hearsay evidence for abuse of discretion find that there may be some questions of law within the hearsay rule, which permits the court to review those questions de novo.
The Commission asked CEBS to look again at eight specific discretions at national level, particularly those relating to real estate.
(63) Their Honours held that the trial judge had failed to consider the exercise of either discretion. (64) In separate judgments, Deane and Toohey JJ distinguished the two discretions, holding that both had miscarried.
It is now settled that, in a case where a voluntary confessional statement has been procured by unlawful police conduct, a trial judge should, if appropriate objection is taken on behalf of the accused, consider whether evidence of the statement should be excluded in the exercise of either of two independent discretions. The first of those discretions exists as part of a cohesive body of principles and rules on the special subject of evidence of confessional statements.
After finding wide variations in the amount of capital that banks hold against a similar set of loans, the Basel Committee of banking supervisors published six examples of capital requirements where national regulators would no longer have discretion over whether to apply them or not.
The committee said, 'National discretion allows countries to adapt the Basel standards to reflect differences in local financial systems.