Glossary

A B C D E F G H I L M N O P R S T V

ICING/PUTTING STOCK ON HOLD: The practice whereby a lender holds securities at a borrower's request in anticipation of that borrower taking delivery.
IMPLIED REPO RATE: The rate of return for the supplier of cash in a buy/sell back. The rate is not quoted separately but is incorporated in the buy/sell back price. The implied repo rate if return of a trader in cash and carry trade.
INDEMNITY: A form of guarantee or insurance, frequently offered by Agents. Terms vary significantly and the value of the indemnity does also.
INITIAL MARGIN: Initial margin is the excess of cash over securities or securities over cash in repo or securities lending transaction. One party may require a initial margin because of the perceived credit risk of the counterpart. No initial margin is typically expected in fixed income transactions but where it does occur it normally ranges from 1% to 5%. Initial margin is normally posted in securities lending transactions. Australian domestic loans are typically collateralised at 105% of their market value with cash collateral and 100% with non-cash collateral. The purpose of initial margin is usually to protect the supplier of cash with protection in the fall in market value of the collateral during the course of the trade. The size of the margin often varies between according to the volatility of the collateral and the credit standing of the counterparts.
INTERDEALER BROKER: An agent or intermediary that is paid a commission to bring buyers and sellers together. The broker's commission may be paid either by the initiator of the transaction or by both counterparts.
INTERNATIONAL SECURITIES LENDERS ASSOCIATION (ISLA): The UK based securities lending trade association changed its name from the International Stock Lenders Association in May 1996.
INTERNATIONAL SECURITIES MARKET ASSOCIATION (ISMA): International Securities Market Association is an organization of international bond dealers, which sets standards of business conduct in fixed income securities market.
ISLA: The International Securities Lenders Association, the trade association for securities lenders.
ISMA: The International Securities Market Association, an organisation of international securities dealers, maintains offices in Zurich. ISMA is an industry group that sets standards of business conduct in the global securities markets, advises regulators on market practices and provides educational opportunities for industry participants.
ISSUED OUTSTANDING: The quantity/nominal of a security available in the market as at the reporting date. This value will fluctuate as more shares/bonds are issued or repurchased/redeemed.