Central securities depository and Periodic discount rate: Difference between pages

Revision as of 10:43, 25 October 2015

A rate of return - or cost of borrowing - expressed as:

GBP 1 million is borrowed.

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

The periodic discount rate (d) is:

(End amount - start amount) / End amount

= (1.03 - 1) - 1.03

= 0.029

= 2.9%

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-(CSD).
+A rate of return - or cost of borrowing - expressed as:
-A facility for holding securities that allows securities transactions to be processed by book entry.
+*The excess of the amount at the end over the amount at the start
+*Divided by the amount at the end
-Physical securities may be immobilised by the depository or securities may be dematerialised (solely recorded as electronic records).
+==Example==
+GBP 1 million is borrowed.
-In addition to safekeeping, a central securities depository may produce comparison, clearing and settlement functions.
+GBP 1.03 million is repayable at the end of the period.
-== See also ==
+The periodic discount rate (d) is:
-* [[Clearing]]
-* [[CRESTCo]]
-* [[CSDR]]
-* [[Euroclear]]
-* [[International Central Securities Depository]]
-* [[Securities settlement system]]
-* [[Security]]
-* [[Settlement]]
-[[Category:Cash_management]]
+(End amount - start amount) / End amount
+= (1.03 - 1) - 1.03
+= 0.029
+= 2.9%
+==See also==
+*[[Annual effective rate]]
+*[[Discount rate]]
+*[[Periodic yield]]
+*[[Yield]]