Margin and NFC+: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Mend link.)
 
imported>Doug Williamson
(Create the page. Source: The Treasurer November 2013 page 11.)
 
Line 1: Line 1:
1. ''Accounting.''
A Non Financial Counterparty which is not exempted under [[EMIR]] from [[central clearing]] and [[collateral]] requirements, because of the very large numbers of derivatives transactions it has outstanding.


Profit margins measure the surplus of revenues over relevant costs, often expressed as a percentage.
Other Non Financial Counterparties are normally exempted from these requirements under EMIR.
 
Profit margins are usually expressed as a percentage of revenues, for example in the Net profit margin.
 
 
Less commonly, margins can also be expressed as a margin (percentage) on relevant costs.
 
Gross profit measured as a percentage of costs is also sometimes known as ''markup'', an amount added to costs to determine a selling price.
 
 
2. ''Banking.''
 
Net interest margin (NIM).
 
 
3. ''Bank lending.''
 
Lending margin is a percentage amount added explicitly to a market reference rate, to calculate the total rate of interest payable by a borrower.
 
 
4. ''Derivatives markets.''
 
Margin is a refundable deposit payable by market participants to protect other participants in the market against the risk of a default.
 
In this context, margin is a form of collateral.
 
 
5. ''Financing.''
 
An amount implicitly built into a total interest rate or discount rate - charged to a client - to cover risk and a level of profit for the finance provider.
 
 
6. ''Secured lending.''
 
An amount deducted from the value of an asset used as collateral, to calculate the maximum amount of any loan to be secured against the asset.
 
Also known as a 'haircut'.
 
 
7.  ''Project planning and management.''
 
A ''safety margin'' is an allowance for worsening of a key input or variable in a project.
 
 
8.
 
Any other difference, usually a relatively small difference compared with the amounts themselves being compared.
 
For example, forward margin in foreign exchange markets.




== See also ==
== See also ==
* [[Alternate Base Rate]]
* [[NFC]]
* [[Bank margin]]
* [[Basel Committee on Banking Supervision]]  (BCBS)
* [[Collateral]]
* [[Contribution margin]]
* [[EBIT margin]]
* [[EMIR]]
* [[Exchange traded]]
* [[Forward contract]]
* [[Forward margin]]
* [[Futures contract]]
* [[Haircut]]
* [[Initial margin]]
* [[International Swaps and Derivatives Association]]  (ISDA)
* [[International Organization of Securities Commissions]]  (IOSCO)
* [[Maintenance margin]]
* [[Margin call]]
* [[Margin compression]]
* [[Margin of safety]]
* [[Margin on costs]]
* [[Margin risk]]
* [[Marginal]]
* [[Margining]]
* [[Markup]]
* [[Net profit margin]]
* [[NII]]
* [[NIM]]
* [[Over the counter]]
* [[Profit margin]]
* [[Stepped margin]]
* [[Sustainability-Linked Loan Principles]]
* [[Tax sparing]]
* [[Uncleared Margin Rule]]  (UMR)
* [[Variation margin]]
* [[WGMR]]
 
 
== External link ==
[https://www.bis.org/bcbs/publ/d499.pdf Margin requirements for non-centrally cleared derivatives - BCBS and IOSCO]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Financial_products_and_markets]]

Revision as of 15:45, 4 November 2013

A Non Financial Counterparty which is not exempted under EMIR from central clearing and collateral requirements, because of the very large numbers of derivatives transactions it has outstanding.

Other Non Financial Counterparties are normally exempted from these requirements under EMIR.


See also