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The interest accrued but not yet paid on a bond. It is calculated by multiplying the nominal interest rate of the bond by the time fraction elapsed since the coupon started accruing.
Can be of buy and sell, and implies the action of buying and selling by the system members.
Are
the software companies, certified by the Senaf as capable of developing
applications compliant with the SAPI
Smallest measure used in quoting yelds on bills, notes and bonds.
A security maturing in the medium or long term and which usually generates returns to the investor through periodic payments (coupons) until maturity. Among Treasury Securities, Bonos and Obligaciones del Estado fall into this category.
A form of representation of securities which substitutes special accounting entries for the physical paper support.
(See Brokerage Member).
Are the participants of the System that are authorised by the competent bodies to mediate in the system and that have entered into relevant contracts with Senaf well as any other entities that in the future could be authorised.
The nominal interest, usually paid on a regular basis and expressed in terms of percentage of the face value, which bondholders have the right to receive. Coupons can be fixed (when a specific amount is set at the time of bond issuance) or floating (when the amount is related to a specific variable, in a relation established when the bond is issued). All outstanding Bonos and Obligaciones currently pay fixed annual coupons.
Participants of the System that are authorised by the competent bodies to trade in the market and have entered into the relevant contracts with the SENAF or with other entities which may be authorised in the future.
Each participant can visualize all prices, with their accumulated volume, relating to each reference.
Type
of asset that originates in issuer entities, through which they
request money from investors for their financing. It represents
a legal right on a gross profit.
Return, generally expressed in yearly percentage, received for an investment. It can be interpreted in two ways: *Nominal interest: only present in explicit yield securities. It is equivalent to the coupon of the securities. *Effective interest: the rate which equals the invested capital to the current value of all amounts which will be received from the investment in the future. This is, therefore, the best measure of a security's return at the time of purchase.
They
refer to the prices of two simultaneous orders, which are of opposite
sign and which proceed from different members. The demand price
is higher than the offer price, or the offer price is lower than
the demand price.
Internal rate of return. It is the rate of discount applied to the interests and to the redemption of the principal, which makes the price equal to the current value.
The transaction through which a security is created and sold by the issuer to investors.
Feature of a financial asset that refers to the ease with which it can be sold in the secondary market; thus, a high level of liquidity is essential to the investor who envisages selling his or her securities prior to maturity. In general terms, the liquidity of a security is high when its outstanding volume is large, when the clearing and settlement system (i.e. the system for executing buy and sell orders) works efficiently, when there are no legal or fiscal impediments to buying and selling it, and when the cost of doing so is low.
A small group of financial entities with special rights and obligations, in order that they contribute to the liquidity of the Secondary Public Debt Market managed by the Central de Anotaciones (Book-Entry System of the Bank of Spain) and cooperate with the Dirección General del Tesoro y Política Financiera in the diffusion of the National Debt both in Spain and abroad.
The best price in offer and demand relating to each reference.
The date on which a security is redeemed.
All those Entities which have signed a contract of adhesion to the SENAF having accepted all its stipulations.
The amount established by the issuer as the unit price of an asset; the main use of the nominal (face) value is as a reference for coupon payments. In the case of Bonos and Obligaciones, the nominal value is equal to the redemption value.
Market of newly issued securities, i.e., the market in which securities are offered to investors for the first time. Therefore, this is a market in which investors (called subscribers) purchase new securities from the issuer.
The
redemption value of a bond.
It consists of positioning every order of the same price, no matter its volume, in accordance with the time it was made.
The
transaction through which the owner of a security receives the amount
to which the security entitles him/her at maturity.
The amount received by the owner of a security at maturity. In the case of Bonos and Obligaciones del Estado, the final payment is increased by the last coupon payment (which takes place on the same date as maturity).
(Also known as repurchase agreement). A transaction through which a security is purchased with the commitment to resell it on a later date at a pre-set price. For practical purposes, the repo is an option for small investors to invest in Treasury Securities for very short periods of time.
The
total yield resulting from holding a certain security.
(Senaf Application Programmer Interface) The SAPI is an interface between the mebers and the Senaf wich allows members to integrate in their systems all our market information, and to send market orders from automatic trading systems.
Market in which previously issued securities are traded.
The legal concept referring to the set of financial rights attached to a document (a physical security) or to a specific accounting entry (securities held in book-entry form). Securities are easily transferable.
Two opposite transactions -a purchase and a sale-with different dates agreed simultaneously with the same financial institution at pre-set prices. Sell-buybacks are very similar to repos, and allow investment in Treasury Securities for short periods of time.
Difference between yelds on securities of the same quality but different maturities
The
transaction through which a bond is transformed into a set of zero-coupon
bonds which may be traded separately. Each of these new securities
(referred to as strips) entitles the owner to receive one single
payment (be it a coupon payment or the redemption of the principal)
in the future.
Zero-coupon bonds resulting from stripping a bond. There are two types of strips: "principal only strips" (the nominal value corresponding to the redemption value of the original bond) and "interest only strips" (the nominal value of which is the coupon of the original bond).
An issuance mechanism by which a security -identified by its code-is issued in successive auctions. Securities with exactly the same features thus join other securities previously issued, all of them being fully fungible. The main goal is to reach a total size for the security big enough to ensure liquidity in the secondary market.
Every day marked as such in the Trading Calendar of SENAF for the current year.
It
occurs when the existing orders of a reference -of the same price
or better price and of opposite nature- are automatically crossed. *Interesting
Glossaries: |
