United States - Revision history

imported>Doug Williamson: Update for LIBOR transition.

2022-04-27T13:46:18Z

Update for LIBOR transition.

← Older revision		Revision as of 13:46, 27 April 2022
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	===Benchmark rates===		===Benchmark rates===
	Short-term money market instruments can be ~~indexed off~~ a bank's prime rate, the Federal Reserve's discount rate, ~~LIBOR~~ or a three-month, six-month or one-year Treasury bill. The Federal Reserve's discount rate is the interest rate at which a depository institution lends immediately available funds (balances at the Federal Reserve) to another depository institution overnight. The rate may vary from one depository institution to another and from day-to-day.		Short-term money market instruments can be referenced to one of a number of different benchmark rates. For example a bank's prime rate, the Federal Reserve's discount rate, or a three-month, six-month or one-year Treasury bill. The Federal Reserve's discount rate is the interest rate at which a depository institution lends immediately available funds (balances at the Federal Reserve) to another depository institution overnight. The rate may vary from one depository institution to another and from day-to-day.

imported>Doug Williamson: Mend broken link to IRS home page.

2017-01-08T17:40:28Z

Mend broken link to IRS home page.

← Older revision		Revision as of 17:40, 8 January 2017
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	In addition to federal taxes, state and local governments have the power to impose taxes on income and property. Although state and local taxes are ordinarily imposed at rates significantly lower than those of the federal income tax, they are becoming increasingly important and must be taken into consideration in planning business transactions. US taxation is highly complex and treasurers are reminded to take appropriate professional advice on a timely basis. For extensive resources, including downloadable publications, visit the website of the [www.irs.gov Internal Revenue Service (IRS)].		In addition to federal taxes, state and local governments have the power to impose taxes on income and property. Although state and local taxes are ordinarily imposed at rates significantly lower than those of the federal income tax, they are becoming increasingly important and must be taken into consideration in planning business transactions. US taxation is highly complex and treasurers are reminded to take appropriate professional advice on a timely basis. For extensive resources, including downloadable publications, visit the website of the [https://www.irs.gov Internal Revenue Service (IRS)].

imported>Doug Williamson: Mend link.

2016-12-19T08:45:49Z

Mend link.

← Older revision		Revision as of 08:45, 19 December 2016
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	===Capital markets issuance===		===Capital markets issuance===
	* '''New York Stock Exchange listing''' – The New York Stock Exchange (NYSE) is owned by Intercontinental Exchange (ICE), a network of regulated exchanges and clearinghouses for financial and commodity markets. With over 12,000 listed issues from more than 55 countries, ICE's equities markets – the New York Stock Exchange, NYSE MKT, NYSE Arca, NYSE Amex Options and NYSE Arca Options – represent one-third of the world's equities trading and the most liquidity of any global exchange group. Domestic listing requirements for a listing on the NYSE call for a minimum distribution of a company's shares within the US. Distribution of shares can be attained through US public offerings, acquisitions made in the US or by other similar means. Non-US corporations may elect to qualify for listing under either the alternate listing standards for non-US corporations or the NYSE's domestic listing criteria. However, an applicant company must meet all of the criteria within the standards under which it seeks to qualify for listing. The full details of the minimum numerical listing standards are contained in the Listed Company Manual available for download at [https://www.nyse.com/index www.nyse.com]. Other SEC regulated stock exchanges are also available including the [www.chx.com Chicago Stock Exchange] and the [http://www.nsx.com/ National Stock Exchange-Chicago].		* '''New York Stock Exchange listing''' – The New York Stock Exchange (NYSE) is owned by Intercontinental Exchange (ICE), a network of regulated exchanges and clearinghouses for financial and commodity markets. With over 12,000 listed issues from more than 55 countries, ICE's equities markets – the New York Stock Exchange, NYSE MKT, NYSE Arca, NYSE Amex Options and NYSE Arca Options – represent one-third of the world's equities trading and the most liquidity of any global exchange group. Domestic listing requirements for a listing on the NYSE call for a minimum distribution of a company's shares within the US. Distribution of shares can be attained through US public offerings, acquisitions made in the US or by other similar means. Non-US corporations may elect to qualify for listing under either the alternate listing standards for non-US corporations or the NYSE's domestic listing criteria. However, an applicant company must meet all of the criteria within the standards under which it seeks to qualify for listing. The full details of the minimum numerical listing standards are contained in the Listed Company Manual available for download at [https://www.nyse.com/index www.nyse.com]. Other SEC regulated stock exchanges are also available including the [https://www.chx.com Chicago Stock Exchange] and the [http://www.nsx.com/ National Stock Exchange-Chicago].
	* '''NASDAQ''' – the National Association of Securities Dealers' Automated Quotation (NASDAQ) is owned by the NASDAQ OMX Group, which currently lists approximately 3,600 companies. As of July 2015 the companies had a combined market capitalisation of over $8.5 trillion. Listing requirements for the NASDAQ are available for download at [http://www.nasdaq.com/ www.nasdaq.com]. A useful introductory overview of the main securities regulation governing US listed companies is [http://www.sec.gov/about/laws.shtml provided by the SEC].		* '''NASDAQ''' – the National Association of Securities Dealers' Automated Quotation (NASDAQ) is owned by the NASDAQ OMX Group, which currently lists approximately 3,600 companies. As of July 2015 the companies had a combined market capitalisation of over $8.5 trillion. Listing requirements for the NASDAQ are available for download at [http://www.nasdaq.com/ www.nasdaq.com]. A useful introductory overview of the main securities regulation governing US listed companies is [http://www.sec.gov/about/laws.shtml provided by the SEC].

imported>Doug Williamson: Typo correction remove surplus '['

2016-12-19T08:44:07Z

Typo correction remove surplus '['

← Older revision		Revision as of 08:44, 19 December 2016
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	==Risk management==		==Risk management==
	The major US derivative exchanges are the [[http://www.cmegroup.com Chicago Board of Trade, Chicago Mercantile Exchange] and [http://www.cboe.com Chicago Board Options Exchange]. All three provide comprehensive data on US derivatives contracts and market conditions via their websites.		The major US derivative exchanges are the [http://www.cmegroup.com Chicago Board of Trade, Chicago Mercantile Exchange] and [http://www.cboe.com Chicago Board Options Exchange]. All three provide comprehensive data on US derivatives contracts and market conditions via their websites.

	{\| border="1" cellpadding="5" cellspacing="0" class="infotable" style="float:right; background:#fff; min=width:100%; width:100%"		{\| border="1" cellpadding="5" cellspacing="0" class="infotable" style="float:right; background:#fff; min=width:100%; width:100%"

imported>Doug Williamson: Typo correction 'Volcker'.

2016-12-18T20:15:13Z

Typo correction 'Volcker'.

← Older revision		Revision as of 20:15, 18 December 2016
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	The ~~Volker~~ Rule provisions within the Act impose a prohibition on most proprietary trading by US banks and their affiliates, subject to limited exceptions. It also restricts covered institutions from owning, sponsoring or investing in hedge funds or private equity funds.		The Volcker Rule provisions within the Act impose a prohibition on most proprietary trading by US banks and their affiliates, subject to limited exceptions. It also restricts covered institutions from owning, sponsoring or investing in hedge funds or private equity funds.
	The act requires more SEC scrutiny and corporate governance of US and Foreign Financial Institutions. On the governance side, the Act encourages whistleblowers to report any kind of securities violations by offering rewards of between 10% and 30% of funds recovered that exceed $1m. There is a greater role for shareholders with two important provisions relating to the act: the “say on pay” and “say on golden parachutes” rules. The “say on pay” is offered to shareholders once every three years at the annual meeting. It is a non-binding vote offered to shareholders in order to approve executive compensation as disclosed in agreement with the SEC rules. The “say on golden parachutes” is the shareholders' rights to a nonbinding vote to approve payments made to any executive in connection with a M&A transaction that needs to be approved in a shareholder meeting. This rule covers both financial institutions and public companies.		The act requires more SEC scrutiny and corporate governance of US and Foreign Financial Institutions. On the governance side, the Act encourages whistleblowers to report any kind of securities violations by offering rewards of between 10% and 30% of funds recovered that exceed $1m. There is a greater role for shareholders with two important provisions relating to the act: the “say on pay” and “say on golden parachutes” rules. The “say on pay” is offered to shareholders once every three years at the annual meeting. It is a non-binding vote offered to shareholders in order to approve executive compensation as disclosed in agreement with the SEC rules. The “say on golden parachutes” is the shareholders' rights to a nonbinding vote to approve payments made to any executive in connection with a M&A transaction that needs to be approved in a shareholder meeting. This rule covers both financial institutions and public companies.

imported>Doug Williamson: Typos amended to 'mortgage' and added 'depository'.

2016-03-23T15:09:35Z

Typos amended to 'mortgage' and added 'depository'.

← Older revision		Revision as of 15:09, 23 March 2016
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	\| style="background:#f2ebef"\|Book entry		\| style="background:#f2ebef"\|Book entry
	\|-		\|-
	\| style="background:#e9d7e0"\|'''GNMA ~~mort-gate~~ backed securities'''		\| style="background:#e9d7e0"\|'''GNMA mortgage backed securities'''
	\| style="background:#e9d7e0"\|Usually 30 year final maturity; assumed average life of 12 years		\| style="background:#e9d7e0"\|Usually 30 year final maturity; assumed average life of 12 years
	\| style="background:#e9d7e0"\|Principal and interest guaranteed by US government		\| style="background:#e9d7e0"\|Principal and interest guaranteed by US government
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	\| style="background:#e9d7e0"\|Interest and a portion of principal (eg 104 5/32)		\| style="background:#e9d7e0"\|Interest and a portion of principal (eg 104 5/32)
	\| style="background:#e9d7e0"\|In 32nds of USD; 1 per $100 depository		\| style="background:#e9d7e0"\|In 32nds of USD; 1 per $100 depository
	\| style="background:#e9d7e0"\|Master certificate in		\| style="background:#e9d7e0"\|Master certificate in depository
	\|}		\|}

imported>Jeeten.patel@thinkpublishing.co.uk at 14:24, 13 November 2015

2015-11-13T14:24:53Z

Show changes

imported>Jeeten.patel@thinkpublishing.co.uk at 14:20, 13 November 2015

2015-11-13T14:20:39Z

Show changes

imported>Jeeten.patel@thinkpublishing.co.uk at 14:06, 13 November 2015

2015-11-13T14:06:55Z

← Older revision		Revision as of 14:06, 13 November 2015
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	* '''Negotiable certificates of deposit (NCD)''' – these are money market instruments issued by a bank. They specify that a sum of money has been deposited, payable with interest to the bearer of the certificates on a return date. Technically, a NCD is a deposit but it is similar to a short-term note, which earns the depositor a competitive rate of return. NCDs were developed so that large deposits could be made at a competitive interest rate with some liquidity. Banks sell NCDs to a wide range of investors, including individuals, corporations, financial institutions, trust departments, pension funds, mutual funds and public agencies. NCDs are typically issued at face value in amounts of $1m or more. Interest on US domestic NCDs with maturities of more than one year is typically paid semi-annually while Eurodollar NCDs are paid interest annually.		* '''Negotiable certificates of deposit (NCD)''' – these are money market instruments issued by a bank. They specify that a sum of money has been deposited, payable with interest to the bearer of the certificates on a return date. Technically, a NCD is a deposit but it is similar to a short-term note, which earns the depositor a competitive rate of return. NCDs were developed so that large deposits could be made at a competitive interest rate with some liquidity. Banks sell NCDs to a wide range of investors, including individuals, corporations, financial institutions, trust departments, pension funds, mutual funds and public agencies. NCDs are typically issued at face value in amounts of $1m or more. Interest on US domestic NCDs with maturities of more than one year is typically paid semi-annually while Eurodollar NCDs are paid interest annually.
	* '''Overnight sweep accounts''' – through overnight sweep accounts, funds are automatically moved from a depository account and invested overnight in an instrument or fund managed by the financial institution. Funds may be invested in a variety of instruments including repurchase agreements, commercial paper, money market mutual funds and offshore investments.		* '''Overnight sweep accounts''' – through overnight sweep accounts, funds are automatically moved from a depository account and invested overnight in an instrument or fund managed by the financial institution. Funds may be invested in a variety of instruments including repurchase agreements, commercial paper, money market mutual funds and offshore investments.
	* '''US treasury services'''		* '''US treasury services:'''
	: - Treasury bills: US treasury bills (T-bills) are short-term obligations of the US government. The Federal Reserve Bank auctions T-bills to investors and dealers, selling the bills to the highest bidders. Bills that mature in 4 weeks, 13 weeks and 26 weeks are auctioned weekly. Bills with the maximum 52 weeks maturity are auctioned every four weeks. T-bills are issued only in book-entry form and are sold at a discount, paying the face amount at maturity. Rates are quoted on an actual/360-day basis. T-bills are traded in round lots of $5m. T-bills can be bought or sold for an initial minimum of $100 and in increments of $100 thereafter. The secondary market for T-bills is the broadest of all short-term money market investments because of the low credit risk, the variety of maturities and the large volume of issues offered. Constant trading at very low spreads provides excellent liquidity.		: - ''Treasury bills:'' US treasury bills (T-bills) are short-term obligations of the US government. The Federal Reserve Bank auctions T-bills to investors and dealers, selling the bills to the highest bidders. Bills that mature in 4 weeks, 13 weeks and 26 weeks are auctioned weekly. Bills with the maximum 52 weeks maturity are auctioned every four weeks. T-bills are issued only in book-entry form and are sold at a discount, paying the face amount at maturity. Rates are quoted on an actual/360-day basis. T-bills are traded in round lots of $5m. T-bills can be bought or sold for an initial minimum of $100 and in increments of $100 thereafter. The secondary market for T-bills is the broadest of all short-term money market investments because of the low credit risk, the variety of maturities and the large volume of issues offered. Constant trading at very low spreads provides excellent liquidity.
	: - Treasury notes and bonds: US treasury notes and bonds are medium- and longer-term interest-bearing obligations of the US government. Notes have original maturities of two to 10 years, while bonds have maturities of 30 years.		: - ''Treasury notes and bonds:'' US treasury notes and bonds are medium- and longer-term interest-bearing obligations of the US government. Notes have original maturities of two to 10 years, while bonds have maturities of 30 years.
	: - Treasury Inflation-Protected Securities (TIPS): TIPS are marketable securities whose principal is adjusted by changes in the Consumer Price Index. TIPS have maturities of five, 10 and 30 years. They are issued in electronic form and can be bought or sold for an initial minimum of $100 and in increments of $100 thereafter.		: - ''Treasury Inflation-Protected Securities (TIPS):'' TIPS are marketable securities whose principal is adjusted by changes in the Consumer Price Index. TIPS have maturities of five, 10 and 30 years. They are issued in electronic form and can be bought or sold for an initial minimum of $100 and in increments of $100 thereafter.
	: - Treasury STRIPS: certain US treasury notes and bonds issued since 1984 are eligible for the “separate trading of registered interest and principal of securities” (STRIPS) programme. STRIPS are sold at a deep discount from their face value, representing interest income that will be received at maturity. Their high yield, liquidity, safety and the wide range of maturities make STRIPS attractive to many investment strategies. As is true of all zero-coupon securities, the market price of STRIPS can be more sensitive to interest rate changes than interest-bearing instruments of a similar maturity. Interest income on STRIPS is subject to federal income taxes on an actual basis.		: - ''Treasury STRIPS:'' certain US treasury notes and bonds issued since 1984 are eligible for the “separate trading of registered interest and principal of securities” (STRIPS) programme. STRIPS are sold at a deep discount from their face value, representing interest income that will be received at maturity. Their high yield, liquidity, safety and the wide range of maturities make STRIPS attractive to many investment strategies. As is true of all zero-coupon securities, the market price of STRIPS can be more sensitive to interest rate changes than interest-bearing instruments of a similar maturity. Interest income on STRIPS is subject to federal income taxes on an actual basis.
	* '''Federal agency securities''' – generally, federal agency debt is incurred in order to make loans to borrowers under various federal credit programmes. Federal agency issues are obligations of US government agencies or departments. Some of these agencies are owned and directed by the federal government; others are federally sponsored but privately owned. In most cases, Congress has established these agencies to borrow funds in the market and then re-loan the proceeds to support public policy goals. These securities offer many of the advantages of treasury securities (book entry, tax advantages, acceptable collateral for public accounts, etc) and usually provide a slightly higher yield than US treasury securities. Some of the federal agencies issuing securities are the Federal National Mortgage Association (FNMA or Fannie Mae), the Government National Mortgage Association (GNMA or Ginnie Mae), the Federal Home Loan Bank System, the Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac) and the Federal Farm Credit Administration. Only GNMAs are guaranteed by the full faith and credit of the US government.		* '''Federal agency securities''' – generally, federal agency debt is incurred in order to make loans to borrowers under various federal credit programmes. Federal agency issues are obligations of US government agencies or departments. Some of these agencies are owned and directed by the federal government; others are federally sponsored but privately owned. In most cases, Congress has established these agencies to borrow funds in the market and then re-loan the proceeds to support public policy goals. These securities offer many of the advantages of treasury securities (book entry, tax advantages, acceptable collateral for public accounts, etc) and usually provide a slightly higher yield than US treasury securities. Some of the federal agencies issuing securities are the Federal National Mortgage Association (FNMA or Fannie Mae), the Government National Mortgage Association (GNMA or Ginnie Mae), the Federal Home Loan Bank System, the Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac) and the Federal Farm Credit Administration. Only GNMAs are guaranteed by the full faith and credit of the US government.
	* '''Municipal securities''' – these are issued by state and local governments and their agencies to raise capital for public projects or general obligations. Municipal securities are generally issued in two forms: short-term notes (1 day to 1 year) and bonds (1 to 30 years). Their income is exempt from US taxes and usually from state and local taxes in the state where they were issued. Moody's and Standard & Poor's rate municipal issues according to their perception of the credit quality of the issuer. Tax-exempt notes differ from each other in the pledge that backs the payment of interest and principal. Tax and revenue anticipation notes are sold in anticipation of future tax receipts or funds from other revenue sources. Bond anticipation notes are sold in anticipation of the receipt of proceeds from a future bond sale. Tax-exempt municipal bonds fall under several categories including general obligations, special tax bonds, revenue bonds and refunding bonds. It should be noted that many municipal bond issues contain early redemption features, which could alter the length of investment and return.		* '''Municipal securities''' – these are issued by state and local governments and their agencies to raise capital for public projects or general obligations. Municipal securities are generally issued in two forms: short-term notes (1 day to 1 year) and bonds (1 to 30 years). Their income is exempt from US taxes and usually from state and local taxes in the state where they were issued. Moody's and Standard & Poor's rate municipal issues according to their perception of the credit quality of the issuer. Tax-exempt notes differ from each other in the pledge that backs the payment of interest and principal. Tax and revenue anticipation notes are sold in anticipation of future tax receipts or funds from other revenue sources. Bond anticipation notes are sold in anticipation of the receipt of proceeds from a future bond sale. Tax-exempt municipal bonds fall under several categories including general obligations, special tax bonds, revenue bonds and refunding bonds. It should be noted that many municipal bond issues contain early redemption features, which could alter the length of investment and return.

imported>Jeeten.patel@thinkpublishing.co.uk at 15:48, 13 October 2015

2015-10-13T15:48:42Z

Show changes

← Older revision		Revision as of 15:09, 23 March 2016
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	\| style="background:#f2ebef"\|Book entry		\| style="background:#f2ebef"\|Book entry
	\|-		\|-
	\| style="background:#e9d7e0"\|'''GNMA ~~mort-gate~~ backed securities'''		\| style="background:#e9d7e0"\|'''GNMA mortgage backed securities'''
	\| style="background:#e9d7e0"\|Usually 30 year final maturity; assumed average life of 12 years		\| style="background:#e9d7e0"\|Usually 30 year final maturity; assumed average life of 12 years
	\| style="background:#e9d7e0"\|Principal and interest guaranteed by US government		\| style="background:#e9d7e0"\|Principal and interest guaranteed by US government
Line 548:		Line 548:
	\| style="background:#e9d7e0"\|Interest and a portion of principal (eg 104 5/32)		\| style="background:#e9d7e0"\|Interest and a portion of principal (eg 104 5/32)
	\| style="background:#e9d7e0"\|In 32nds of USD; 1 per $100 depository		\| style="background:#e9d7e0"\|In 32nds of USD; 1 per $100 depository
	\| style="background:#e9d7e0"\|Master certificate in		\| style="background:#e9d7e0"\|Master certificate in depository
	\|}		\|}