Listing Rules and Speculation: Difference between pages

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''London Stock Exchange''
1. ''Risk.''
Any risk taking activity or decision which depends for its favourable result on market rates or prices. 


The Listing Rules are regulations which apply to all companies with a full listing - or seeking a full listing - on the London Stock Exchange.
For example, a decision to leave a natural operational exposure unhedged, or a decision not to buy a relevant insurance contract.


The Listing Rules are not mandatory for Alternative Investment Market (AIM) companies.


However, some AIM-listed and other companies choose to follow the Listing Rules on a voluntary basis.
2. ''Market manipulation.''


Intentionally creating market positions - for example by buying or selling assets or derivative contracts - in the hope of making profits from favourable changes in market rates or prices.


The Listing Rules are published by the UK's Financial Conduct Authority.
For example, buying an asset in the hope that its market price will rise in the short term.
 
 
3. ''Market pricing.''
 
Similar position-taking activity which depends for its favourable result on there being no material change in prevailing market rates, prices or conditions.
 
For example, selling straddle options (being one of the speculative activities undertaken by the Barings Bank ‘rogue trader’ Nick Leeson).
 
Another example would be a decision to operate without committed credit lines, or a decision to ride the yield curve.




== See also ==
== See also ==
* [[De-listing]]
* [[Arbitrage]]
* [[Disclosure and Transparency Rules]]
* [[Bubble]]
* [[Financial Conduct Authority]]
* [[Calendar effect]]
* [[Initial public offering ]]
* [[Carry trade]]
* [[Introduction]]
* [[Day trading]]
* [[Listing]]
* [[Default]]
* [[Listing particulars]]
* [[Forward contract]]
* [[London Stock Exchange]]
* [[Futures contract]]
* [[Premium Listing]]
* [[FX instrument]]
* [[Private placement]]
* [[Hedging]]
* [[Security]]
* [[Investment]]
* [[Standard Listing]]
* [[Market manipulation]]
* [[Stock]]
* [[Naked]]
 
* [[Riding the yield curve]]
* [[Risk management]]
* [[Rogue actor]]
* [[Rogue trader]]
* [[Speculative]]
* [[Speculator]]
* [[Straddle]]
* [[Uncovered arbitrage]]
* [[Uncovered interest arbitrage]]


===Other links===
[[Category:Financial_risk_management]]
[http://www.treasurers.org/node/10045 Make a debut, David Tilston, The Treasurer April 2014]

Latest revision as of 01:03, 13 March 2023

1. Risk.

Any risk taking activity or decision which depends for its favourable result on market rates or prices.

For example, a decision to leave a natural operational exposure unhedged, or a decision not to buy a relevant insurance contract.


2. Market manipulation.

Intentionally creating market positions - for example by buying or selling assets or derivative contracts - in the hope of making profits from favourable changes in market rates or prices.

For example, buying an asset in the hope that its market price will rise in the short term.


3. Market pricing.

Similar position-taking activity which depends for its favourable result on there being no material change in prevailing market rates, prices or conditions.

For example, selling straddle options (being one of the speculative activities undertaken by the Barings Bank ‘rogue trader’ Nick Leeson).

Another example would be a decision to operate without committed credit lines, or a decision to ride the yield curve.


See also

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