Category 3 messages and Rate of return: Difference between pages

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imported>Doug Williamson
(Mend link.)
 
imported>Doug Williamson
(Expand the page for different annual bases of quoting rates.)
 
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''Society for Worldwide Interbank Financial Telecommunications (SWIFT)''
The investor's return on an investment, expressed as a proportion of the amount invested.


SWIFT Category 3 messages relate to treasury markets and include:
Most commonly expressed as a percentage.
*Foreign exchange;
*Money markets; and
*Derivatives.




<span style="color:#4B0082">'''''Changes to SWIFT messages'''''</span>
<span style="color:#4B0082">'''Example'''</span>


:"Members using SWIFT Category 3 messages to report and confirm forex transactions and OTC derivatives were recommended to seek further information from SWIFT or their electronic trading platform suppliers, to ensure they were able to format messages by the November [2017 changes] implementation date."
GBP 1 million is invested.  


:''The Treasurer magazine, March 2017, p13 - Technical briefing.''
GBP 1.03 million is repayable at the end of the period.
 
 
The rate of return per period (r) is:
 
r = (End amount / Start amount) - 1
 
 
''Which can also be expressed as:''
 
r = (End / Start) - 1
 
''or''
 
r = <math>\frac{End}{Start}</math> - 1
 
 
= <math>\frac{1.03}{1}</math> - 1
 
= 0.0300
 
= '''3.00%''' per period
 
 
=== Basis of quoting rates of return ===
 
The rate of return in the example above has been calculated and stated on a periodic basis.
 
Rates of return are often also quoted on an annual basis, following the conventional quoting convention for the market in which the proposed deal is being quoted.




== See also ==
== See also ==
* [[Derivative instrument]]
* [[Conventional year]]
* [[Forex]]
* [[Effective annual rate]]
* [[MT940]]
* [[Nominal annual rate]]
* [[Over the counter]] (OTC)
* [[Periodic]]
* [[Society for Worldwide Interbank Financial Telecommunications]] (SWIFT)
* [[Periodic rate]]
* [[SWIFTNet]]
* [[Real return]]
* [[Return]]
* [[Yield]]


[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Financial_products_and_markets]]

Revision as of 17:01, 19 November 2015

The investor's return on an investment, expressed as a proportion of the amount invested.

Most commonly expressed as a percentage.


Example

GBP 1 million is invested.

GBP 1.03 million is repayable at the end of the period.


The rate of return per period (r) is:

r = (End amount / Start amount) - 1


Which can also be expressed as:

r = (End / Start) - 1

or

r = <math>\frac{End}{Start}</math> - 1


= <math>\frac{1.03}{1}</math> - 1

= 0.0300

= 3.00% per period


Basis of quoting rates of return

The rate of return in the example above has been calculated and stated on a periodic basis.

Rates of return are often also quoted on an annual basis, following the conventional quoting convention for the market in which the proposed deal is being quoted.


See also