Glossary

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

PAIR OFF: The netting of cash and securities in the settlement of two trades in the same security for the same value date. Pairing off allows for settlement of net differences.
PARTIALLING: Market practice or a specific agreement between counterparts that allows a part-delivery against an obligation to deliver securities.
PASLA: The Pan Asia Securities Lending Association
PAY FOR HOLD: The practice of paying a fee to the lender to hold securities for a particular borrower until the borrower is able to take delivery.
POSITIVE CARRY: Net gain earned when financing cost is less than yield on financed securities.
PRIME BROKERAGE: A service offered to hedge funds and other customers by securities house to support their trading, investment and hedging activities. The service comprises of clearing, custody, securities lending and financing arrangements. Effectively a non-stop banking service to eliminate the need for the hedge fund to have a large back office and multiple clearance relationships.
PRINCIPLE: A principle is a party to a loan transaction that acts on its behalf (and therefore always represents its own risks rather than that of a client).
PROPRIETARY TRADING: Trading activity conducted by a securities firm for its own account rather than for its clients.
PSA: The Public Securities Association is a U.S.-based industry organisation of participants involved in certain bond markets sectors. The PSA establishes non-binding standards of business conduct in the fixed income securities markets and advises regulators and others on market practices.
PSA/ISMA GLOBAL MASTER REPURCHASE AGREEMENT (GMRA): The market-standard document used for trading repo in instruments other than U.S. Treasuries. The GMRA is based on the U.S. PSA Master Repurchase Agreement, was introduced in November 1992 and revised in November 1995.
PUBLIC SECURITIES ASSOCIATION (PSA): A UB-based industry organization of bond market participation. The PSA establishes non-binding standards of business conduct in the fixed-income securities market and advises regulators and others on market practices.