Order ID:89JHGSJE83839 | Style:APA/MLA/Harvard/Chicago | Pages:5-10 |
Instructions:
A Company Exit a Financial Instrument
Exiting from a financial instrument we should consider an exit strategy. An exit strategy is a strategy that is executed by business owners investors traders to liquidate their position in a financial asset upon meeting certain criteria
A company can exit a financial instruments by the following means algorithmic trading , direct electronic access ,acting as a general clearing member and synchronisation of business clocks.
Algorithmic trading is a method of executing a large order using automated pre-programmed trading instructions accounting variables such as time price and volume to send small slices of the order out of the market over time.The term is also used to refer to mean automated trading system .Such systems run strategies market making a profit even as its declining.
Direct trading is an arrangement where the company of a trading venue permits a person to use its trading code so that the person can electronically transmit orders relating to financial instrument directly to the trading venue and includes arrangements which involve the use by a person of the infrastructure of the member or participant.
During the declining stage the company uses the service bureaus this are technology company that provide order routing and connectivity services for both the intermediaries and institutional customers. The company also acts as general clearing member this is where the company imposes requirements on the persons to whom the financial instruments are being provided to reduce the risk to the firm even at the declining stage .The company has a binding agreement with the person to whom it is providing clearing services detailing the essential rights and obligations of both parties arising from the provision of services.
Synchronisation of business clocks a company tend to use business clocks to monitor the performance of the financial instrument. Even at the final stages the company requires that all trading venues and their members or participants synchronise the business clocks that records the dates and time of any reportable events.
A Company’s Exit From Financial Instrument
THE CONTINUUM OF MODERN FINANCIAL PRODUCTS
Financial instruments can be created with any combination of risk protection, yield and potential gain. It is useful to be able to set them on a continuum, showing which are riskier for the investor and how the potential returns might change.
The continuum runs from secured debt as the safest instrument upto the ordinary shares capital as the riskiest. Other securities are shown on points on the risk return continuum between these two extremes
References
Article17(6) of MIFIP and MIFID RT6 specifying the organizational requirement of investment firms acting as general clearing
The Financial Services and Markets Act 2000
Amendments of markets in financial instruments and regulation
A Company Exit a Financial Instrument
RUBRIC |
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Excellent Quality 95-100%
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Introduction
45-41 points The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned. |
Literature Support 91-84 points The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned. |
Methodology 58-53 points Content is well-organized with headings for each slide and bulleted lists to group related material as needed. Use of font, color, graphics, effects, etc. to enhance readability and presentation content is excellent. Length requirements of 10 slides/pages or less is met. |
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Average Score 50-85% |
40-38 points More depth/detail for the background and significance is needed, or the research detail is not clear. No search history information is provided. |
83-76 points Review of relevant theoretical literature is evident, but there is little integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are included. Summary of information presented is included. Conclusion may not contain a biblical integration. |
52-49 points Content is somewhat organized, but no structure is apparent. The use of font, color, graphics, effects, etc. is occasionally detracting to the presentation content. Length requirements may not be met. |
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Poor Quality 0-45% |
37-1 points The background and/or significance are missing. No search history information is provided. |
75-1 points Review of relevant theoretical literature is evident, but there is no integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are not included in the summary of information presented. Conclusion does not contain a biblical integration. |
48-1 points There is no clear or logical organizational structure. No logical sequence is apparent. The use of font, color, graphics, effects etc. is often detracting to the presentation content. Length requirements may not be met |
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A Company Exit a Financial Instrument |
A Company Exit a Financial Instrument