Middle Office
What is the Middle Office? The middle office is a department within a financial services institution. It comprises a team of employees that includes risk managers, information technology officers, and other officers who manage risks within the organization, as well as managing information technology. How It Works A financial services institution, such as an investment...
Middle East and North Africa (MENA)
What is the Middle East and North Africa (MENA)? MENA is an abbreviation that stands for the Middle East and North Africa. The Middle East and North Africa is a region comprising of a heterogeneous group of countries. According to the World Atlas, the MENA region consists of 19 countries ranging from oil-exporting nations in...
Max Pain (Options)
What is Max Pain (Options)? Max pain is a situation in which the stock price locks in on an option strike price as it nears expiration, which would cause financial losses for the highest possible number of options traders. It attempts to explain how, during the last days, the underlying stock prices often cluster around...
Markets in Financial Instruments Directive (MiFID)
What is the Markets in Financial Instruments Directive (MiFID)? The Markets in Financial Instruments Directive (MiFID) is a European Union regulatory framework that exerts a higher degree of transparency in the operation of financial markets and standardizes disclosure requirements for investment firms and banks operating in the European Union. MiFID aims to increase investor protection...
Debt Instrument
What is a Debt Instrument? A debt instrument is a fixed-income asset that legally obligates the debtor to provide the lender interest and principal payments. Accessing debt financing requires the debtor to pay the creditor according to pre-defined contractual terms. The contract should outline the interest payment schedule, collateral if applicable, interest rate, maturity date, covenants,...
