Interest cap and Internalisation: Difference between pages

Revision as of 17:41, 12 November 2016

1.

The practice where customer trades are executed internally within a brokerage or through intermediaries rather than through an exchange.

The brokerage keeps any money it may make on the spread (the difference between the purchase price and the sale price).

2.

Netting of transactions within a group of businesses, thereby reducing the number and cost of external transactions.

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-''Tax - anti-avoidance''.
+.
-Limits on corporate tax relief for interest and amounts economically equivalent to interest.
+The practice where customer trades are executed internally within a brokerage or through intermediaries rather than through an exchange.
+The brokerage keeps any money it may make on the spread (the difference between the purchase price and the sale price).
-Do not confuse with an interest ''rate'' cap, which is a hedging instrument to manage interest rate risk.
+.
-==See also==
+Netting of transactions within a group of businesses, thereby reducing the number and cost of external transactions.
-* [[Corporate Interest Restriction]]
-* [[Debt cap]]
-* [[Fixed ratio method]]
-* [[Interest rate cap]]
-* [[Tax avoidance]]
-* [[Tax relief]]
-* [[Worldwide interest cap]]
-[[Category:Accounting,_tax_and_regulation]]
+== See also ==
+* [[Internalisation risk]]
+* [[Spread]]