trade confirmation

trade confirmation
USA
trade confirmation, Also known as a swap confirmation, or simply a confirmation.
A document which parties to a derivatives transaction use to specify the commercial terms of the transaction, including pricing terms such as spreads. A confirmation also typically lists the notional amount of the transaction and the reference entity, if any. A credit derivatives confirmation will also specify the reference obligation and set out deliverable obligation characteristics (such as, for example, senior unsubordinated notes of the reference entity), among other terms, of the transaction.
Although ISDA publishes certain template confirmations for various types of derivatives transactions, a confirmation can take many forms and is sometimes simply an informal documentation of a bespoke trade (bespoke transaction).
The confirmation is generally incorporated by reference into, and forms a part of, an ISDA Master Agreement. While the ISDA Master Agreement specifies terms that may be applicable to one or more transactions, each transaction under an ISDA Master is usually documented by a separate confirmation.
Parties to derivatives transactions also may use a long-form confirmation, which lists the commercial terms of a transaction in addition to terms that might typically be found in a Schedule, such as additional termination events and events of default.
For more on the confirmation, see Practice Note, ISDA Documents: Overview: Confirmation (www.practicallaw.com/1-386-3976).
See also

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Игры ⚽ Нужно решить контрольную?

Look at other dictionaries:

  • confirmation — con·fir·ma·tion /ˌkän fər mā shən/ n 1: the act or process of confirming, assuring, or upholding seeking confirmation of the agreement; specif: the ratification of an executive act by a legislative body senate confirmation of the Supreme Court… …   Law dictionary

  • Electronic Trade Confirmation Project —   Is a computerised system for fund managers to execute trade confirmations. The project was started as a response the banks refusing to allow fund managers to join the SWIFT. This situation was reversed in 1992 when fund managers were admitted… …   International financial encyclopaedia

  • confirmation — The document used to state in writing the terms of a trade that were previously agreed to orally by the buyer and the seller. American Banker Glossary The written statement that follows any trade in the securities markets. Confirmation is issued… …   Financial and business terms

  • Confirmation — 1. The occurrence of two or more indicators corresponding with one another and thereby corroborating the predicted trend. 2. The written acknowledgment provided by a broker indicating that a trade has been completed. This includes details such as …   Investment dictionary

  • Confirmation — The written statement that follows any trade in the securities markets. Confirmation is issued immediately after a trade is executed. It spells out settlement date, terms, commission, etc. The New York Times Financial Glossary * * * confirm… …   Financial and business terms

  • Confirmation On A Chart — An indicator or chart pattern that provides evidence that the initial trading alert in question is indicative of an actual trading opportunity. Traders look to other technical indicators to confirm their expected prediction so that they can have… …   Investment dictionary

  • confirmation note — The derivative equivalent of a securities contract note which outlines the details of a trade just undertaken; normally sent out with due despatch (end of next business day). Dresdner Kleinwort Wasserstein financial glossary …   Financial and business terms

  • swap confirmation — USA trade confirmation, Also known as a swap confirmation, or simply a confirmation. A document which parties to a derivatives transaction use to specify the commercial terms of the transaction, including pricing terms such as spreads. A… …   Law dictionary

  • long-form confirmation — USA A document that specifies the terms of a derivatives transaction, which functions as both a Schedule to an ISDA Master Agreement and a trade confirmation. Parties to a derivatives transaction may use a long form confirmation if they wish to… …   Law dictionary

  • Eire (Confirmation of Agreements) Act 1938 — The Eire (Confirmation of Agreements) Act 1938 (182 Geo.VI, c.25) was an Act of the British Parliament passed on 17 May 1938. It was the British implementing measure for the 1938 Anglo Irish Agreements which were signed at London on 25 April 1938 …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”