Index Arbitrage definition

Index Arbitrage means a trading strategy in which pricing is based on discrepancies between a "basket" or group of stocks and the derivative index product (i.e. a basis trade) involving the purchase or sale of a "basket" or group of stocks in conjunction with the purchase or sale, or intended purchase or sale, of one or more derivative index products in an attempt to profit by the price difference between the "basket" or group of stocks and the derivative index products. While the purchase or sale of the stocks must be in conjunction with the purchase or sale of derivative index products, the transaction need not be executed contemporaneously to be considered index arbitrage. The term "derivative index products" refers to cash- settled options or futures contracts on index stock groups, and options on any such futures contracts.
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Index Arbitrage. ’ means an arbitrage trading strategy involving the purchase or sale of a group of stocks in conjunction with the purchase or sale, or intended purchase or sale, of one or more cash-settled options or futures contracts on index stock groups or
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Index Arbitrage means a strategy that primarily involves trading in securities or related futures contracts to profit from temporary discrepancies between the prices of the securities comprising an index and the theoretical futures prices of the same index.
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Examples of Index Arbitrage in a sentence

  • Equity Index Arbitrage involves capturing the pricing differences that may arise between an index and its component stocks.

  • Index Arbitrage: An Index derives its value from the underlying stocks and the underlying stocks can be used to create a synthetic index matching the Index levels.

  • Following are some of the illustrations on the different types of Derivative exposure strategies that the Scheme may adopt: Example of Index Arbitrage replacing Company A, Company B and Company C with similar stocks.

  • Arbitrage – Arbitrage strategies exist to take advantage of discrepancies between prices or markets, for example: Index Arbitrage: Simultaneous buying (selling) of stock index futures while selling (buying) the underlying stocks of that index with the goal of capturing the profit between the two baskets.

  • This term contract embodies the entire understanding between the parties and cannot be varied except by written agreement of the undersigned parties and Board approval of the new or additional writing at a lawfully called meeting.

  • Mr. Orser began his career in finance supporting an Index Arbitrage desk at RBC Dominion Securities, then moved to Merrill Lynch where he worked on the trading desk for the Equity Linked Products Group.

  • Index Arbitrage: As the Nifty 50 derives its value from fifty underlying stocks, the underlying stocks can be used to create a synthetic index matching the Nifty 50 Index levels.

  • Index Arbitrage If F  SerqTt , profits can be made by buying the stocks underlying the index and shorting futures contracts.

  • DeCore, Former Co- Head U.S. Index Arbitrage (1997–2007), Nomura Securities, to Elizabeth M.

  • Figure 5: Messages Between an Index Arbitrage Transaction and Object Instances RTC-based psuedo-code and show that it expresses a correct index arbitrage in our real-time object-oriented database model.In our solution, the index arbitrage transaction is the coordinator that initiates the TAC;the participants are the database BROKER objects that the transaction uses.

Related to Index Arbitrage

  • Accounting Arbitrator has the meaning set forth in Section 2.6(c).

  • trade dispute means any dispute or difference between employers and workmen, or between workmen and workmen, connected with the employment or non-employment, or the terms of employment, or with the conditions of labour, of any person;

  • Benchmark Gilt means, in respect of a Reset Period, such United Kingdom government security having a maturity date on or about the last day of such Reset Period as the Calculation Agent, with the advice of the Reference Banks, may determine to be appropriate;

  • Dispute Board (DB) means the person or persons named as such in the SCC appointed by agreement between the Procuring Entity and the Contractor to make a decision with respect to any dispute or difference between the Procuring Entity and the Contractor referred to him or her by the Parties pursuant to GCC Sub-Clause 46.1 (Dispute Board) hereof.

  • ICC Rules means the Rules of Arbitration of the International Chamber of Commerce in effect on the date the applicable arbitration proceeding begins.

  • CPR means cardiopulmonary resuscitation.

  • Notice of Arbitration means the formal notice from the CONTRACTOR or the CUSTOMER to the other party referring a dispute to arbitration in accordance with the provisions of Schedule 2-9.

  • Expedited Dispute Timetable means the accelerated timetable for the resolution of disputes as set out in paragraph 2.6;

  • Arbitrable Dispute means any dispute arising under or in connection with this Agreement.

  • UNCITRAL Arbitration Rules means the arbitration rules of the United Nations Commission on International Trade Law.

  • AAA Rules has the meaning set forth in Section 11.2.

  • Benchmark Replacement Adjustment means, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement for any applicable Interest Period and Available Tenor for any setting of such Unadjusted Benchmark Replacement:

  • Commercial Discovery means any Discovery, which has been declared to be commercial by the Contractor;

  • Formal Dispute means a written objection by an Interested Party to any of the following: i. A solicitation or other request by OGS for offers for a contract for the procurement of commodities, services or technology. ii. The cancellation of the solicitation or other request by OGS. iii. An award or proposed award of the Contract by OGS. iv. A termination or cancellation of an award of the Contract by OGS. v. Changes in the scope of the Centralized Contract by the Commissioner. vi. Determination of “materiality” in an instance of nonperformance or contractual breach. vii. An equitable adjustment in the Centralized Contract terms and/or pricing made by the Commissioner during a Force Majeure event.

  • AAA means the American Arbitration Association.

  • Voluntary arbitration means the procedure whereby parties involved in a labor dispute

  • Arbitration Act means the Arbitration and Conciliation Act, 1996 and shall include any amendment to or any re-enactment thereof as in force from time to time.

  • Money Market Absolute Rate has the meaning set forth in Section 2.3(d).

  • Index Price on a given date means the weighted average (weighted in accordance with the factors listed above) of the closing prices of the companies comprising the Index Group.

  • JAMS Rules has the meaning assigned thereto in Section 13 hereof.

  • conciliator means an individual appointed as such in terms of section 82;

  • LCIA means the London Court of International Arbitration;

  • Money Market Rate has the meaning specified in Section 2.03(c)(ii)(C).

  • Benchmark Rate means, with respect to any Redemption Date, the rate per annum equal to the annual equivalent yield to maturity or interpolated maturity of the Comparable Benchmark Issue (as defined below), assuming a price for the Comparable Benchmark Issue (expressed as a percentage of its principal amount) equal to the Comparable Benchmark Price for such Redemption Date.

  • HKIAC Rules shall have the meaning ascribed to it in Section 10.13(a).

  • Reconciliation Dispute has the meaning set forth in Section 7.9 of this Agreement.