London fox (London Futures and Options Exchange)
This is the name by which the London Commodity Exchange became known in 1987 to reflect the fact that, in addition to its function as an umbrella organization for various soft commodity futures market exchanges, it had embraced the hitherto separate Traded Options Market. It offers futures and options contracts in a list of defined commodities by both open outcry (outcry market) and electronic screen trading.
In 1991 BIFFEX, the Baltic International Freight Futures Exchange, was also merged with London Fox. All contracts made on London Fox are registered with the London Clearing House which becomes the central counter party by novation and acts as guarantor to the transaction – covering its risk by demanding a margin, by way of deposit, from each member on all their open positions and varying with the estimated risks on particular contracts. The margins are reviewed daily with reference to market prices, and differences are settled between members and the Clearing House.
London International Financial Futures and Options Exchange. (LIFFE)
This was created in 1991 by the merger of the London International Financial Futures Exchange with the London Trade Options Market. It has been given the status of a recognized investment exchange by the Securities and Investment Board. Which is charged with implementing the provisions of the Financial Services Act 1986.
Forward buying of currency in anticipation of future needs has long been common practice within the context of international trade. If, say, a manufacturer needs to obtain a given quantity of a raw material in nine month’s time he may arrange delivery with a seller in another country, but neither party can be certain of what the market price of the goods will be at the time of completion. By that time the prevailing market price may have moved up or down and the exchange rate for the currency needed to effect payment may have changed, perhaps dramatically. In seeking to minimize the risk the buyer might wish to insure against one or both of these variables. By fixing the price nine months in advance he ties himself into a fixed cost.
London Clearing House (LCH).
This is an independent clearing house which clears trades on various Recognized Investment Exchanges namely, London Fox, London Metal Exchange, London International Financial Futures Exchange and the International Petroleum Exchange. The LCH is owned by six leading banks: Barclay’s, Lloyds, Natwest, Midland, Royal Bank of Scotland and Standard Chartered. When the LCH registers a trade for a member of one of the Exchanges it becomes, by novation, the central counterparty. While not a party to any contract
entered into by such members, it ensures that those contracts will be financially performed. It covers the risk inherent in such an obligation by calling for margins to be deposited on all open
contracts margins.
Notes:
Outcry заключение биржевых сделок в торговом зале биржи голосом
и знаком
Thereto к этому
Reputedly по общему мнению
Hitherto до сих пор
Completion завершение
Inherent присущий
THE STOCK EXCHANGE.
The stock exchanges of the United Kingdom and Irish Republic amalgamated in 1973 to become “The Stock Exchange” with its main trading floor and central administration in London. There also trading floors in Glasgow, Liverpool, Manchester, Birmingham and Dublin.
The number and variety of securities officially listed on the Stock Exchange are greater than in any other market in the world and its turnover of company securities is roughly equivalent to that of all the European exchanges combined. Company issues represented more than four-fifth of the securities at market valuation, the remainder being British, Irish Republic and other overseas government and corporation stock. Institutional investors, such as pension funds, now own a higher proportion of ordinary shares than individuals. A market in unlisted securities (generally those of small companies which have been unable hitherto to obtain a Stock Exchange listing) was opened in 1980.
A market in traded share options opened in 1978 on the Stock Exchange. The market, in the shares of 15 prominent British companies, enables investors not only to buy options to purchase or sell shares in future at prefixed prices but also to trade in the options themselves. Since 1981 investors have also been able to buy options, to sell shares at prefixed prices.
Notes:
Floor 1 минимальный уровень /цен/
2 американский операционный зал фондовой биржи /в который
допускаются только члены биржи /;
3 производственная площадь
institutional investor институционный инвестор, учреждение-вкладчик
/инвестиционный трест, банк, страховое общество,
касса взаимопомощи /
unlisted securities ценные бумаги, не допущенные на биржу; ценные
бумаги, находящиеся во внебиржевом обороте.
THE FOREIGN EXCHANGE MARKET.
The market consists of banks and several firms of foreign exchange brokers which act intermediaries between the banks. It provides those engaged in international trade with foreign currencies for their transactions. The foreign exchange banks are in close contact with financial centers abroad and are able to quote buying and selling rates for both spots and future delivery. The forward market enables traders who, at a given date in the future are due to receive or make a specific foreign currency payment, to contract in advance to sell or buy the foreign currency involved for sterling at a prices fixed exchange rate.
Notes:
Foreign exchange broker агент по покупке и продаже иностранной валюты
Buying rate курс покупателей
Selling rate курс продавцов
Spot delivery немедленно оплачиваемая поставка
Forward market рынок по сделкам на срок.
THE STOCK EXCHANGE.
A stock exchange is a financial market which is organized so that securities (all the different kinds of investments) can change hands in the quickest, cheapest and fairest manner possible.
The securities traded on the stock exchange are:
· Debentures: loans to a company which pay interest regardless of whether the company is making a profit or not.
· Government loans or bonds: also called gilt-edged securities; floated to finance special project, with a fixed rate of interest and repayment guaranteed by the government.
· Stock and shares: documents which acknowledge investment in a company, there are two main types; preference shares which bear a fixed but modest rate of dividend (if profits are sufficient). On ordinary shares, the rate of dividend is not fixed.
Companies issue shares to raise the authorized share capital quoted in the Memorandum of Association, or to increase that capital once permission has been granted at a meeting of shareholders.
· All private limited companies and some public limited companies are unquoted companies, their shares may not be dealt in on a stock exchange.
· Quoted or listed companies are PLCs (Public Limited Companies) whose shares may be bought or sold on a stock exchange.
· Most companies use the expertise of an issuing house to handle the sale of new shares.
The main stock exchange in the United Kingdom is the London Stock Exchange and in the U.S. Wall Street in New York. The former is regulated by the Council of the Stock Exchange, the latter by the Securities and Exchange Commission (SEC).
The existence of a stock exchange is important because:
; Prices established on the stock exchange allow a means of valuing securities, thus the value of companies.
; It enables the government, firms and the public to raise money in the long-term.
; It gives savers the opportunity to participate in the profit of a country’s industry.
; The savings of individuals are also used by financial institutions (insurance companies, pension funds, etc.) to purchase securities on the exchange.
z Only members, called brokers or broker/dealers can actually buy and sell securities quoted on the Exchange; they act as intermediaries for individuals or firms and receive a commission.
z Today, the world’s major stock markets are computerized, deals are instantaneous and this sometimes gives rise to significant fluctuations in market trends since many buy/sell options are carried out automatically once a quotation price is reached.
z The leading indicators of stock market performance are:
The Financial Times Stock Exchange 100 Share Index for the London market, and the Dow Jones Industrial Average for Wall Street.
z Speculators operate on a stock exchange in three different ways:
£ The bull who takes an optimistic view of business trends and hopes to sell his shares at a profit. Bulls profit when shares are rising, which is why we say, “a market is bullish”
£ The bear sells shares he does not possess and hopes to buy the same shares at a lower price before the end of the account (trading period) in order to fulfill his contract. Bears profit when share prices are falling, which explains the expression, “the market is bearish”.
£ The stag specializes in the purchase of new shares, he does not want to keep the shares but simply to make a profit out of an issue.
Notes:
To change hands переходить из рук в руки
Debenture облигация акционерной компании
Preference share льготная таможенная пошлина
The bull спекуляция на повышение
The bear спекуляция на понижение
The stag спекулировать ценными бумагами
Instantaneous немедленный.