Basis Trade definition
Basis Trade means a privately negotiated transaction consisting of the simultaneous execution of an Interest Rate Derivative against an offsetting equivalent amount of a related underlying cash bond instrument in a quantity that meets a minimum volume threshold;
Basis Trade means an EFP and is further defined in Rule 416.
Basis Trade means a transaction whereby a basket of securities or an index participation unit is transacted at a price calculated in the prescribed manner which represents the average accumulation (or distribution) price of the position, subject to an agreed upon basis spread, achieved through the execution of related exchange-traded derivative instruments, which may include listed index futures, index options and index participation units in an amount that will correspond to an equivalent market exposure.
More Definitions of Basis Trade
Basis Trade means a transaction consisting for one party (“A”) of: