Clearing House Automated Payments System (CHAPS)
A computerized clearing system for sterling funds that began operations in 1984. It includes 14 member banks, nearly 450 participating banks, and is one of the clearing companies within the structure of the Association for Payment Clearing Services (APACS). |
Similar financial terms
Mortgage-Backed Securities Clearing CorporationA wholly owned subsidiary of the Midwest Stock Exchange that operates a clearing service for the comparison, netting, and margining of agency-guaranteed MBSs transacted for forward delivery.
Market clearing
Total demand for loans by borrowers equals total supply of loans from lenders. The market, any market, clears at the equilibrium rate of interest or price.
Clearing House Interbank Payments System (CHIPS)
An international wire transfer system for high-value payments operated by a group of major banks.
Clearing member
A member firm of a clearing house. Each clearing member must also be a member of the exchange. Not all members of the exchange, however, are members of the clearing organization. All trades of a non-clearing member must be registered with, and eventually settled through, a clearing member.
Clearing House
An adjunct to a futures exchange through which transactions executed its floor are settled by a process of matching purchases and sales. A clearing organization is also charged with the proper conduct of delivery procedures and the adequate financing of the entire operation.
Wire house
A firm operating a private wire to its own branch offices or to other firms, commission houses or brokerage houses.
Trade house
A firm which deals in actual commodities.
Public warehouse
Warehouse operated by an independent warehouse company on its own premises.
Block house
Brokerage firms that help to find potential buyers or sellers of large block trades.
Commission house
A firm which buys and sells future contracts for customer accounts.
Household income
The total level of income earned by all the households in the economy. This will be a significant part of the overall level of National Income.
Licensed Warehouse
A warehouse approved by exchange from which a commodity may be delivered on a futures contract.
Prepayments
Payments made in excess of scheduled mortgage principal repayments.
Payments pattern
Describes the lagged collection pattern of receivables, for instance the probability that a 72-day-old account will still be unpaid when it is 73-days-old.
Payments netting
Reducing fund transfers between affiliates to only a netted amount. Netting can be done on a bilateral basis (between pairs of affiliates), or on a multi-lateral basis (taking all affiliates together).
Lag response of prepayments
There is typically a lag of about three months between the time the weighted average coupon of an MBS pool has crossed the threshold for refinancing and an acceleration in prepayment speed is observed.
Balance of payments
A statistical compilation formulated by a sovereign nation of all economic transactions between residents of that nation and residents of all other nations during a stipulated period of time, usually a calendar year.
Coupon payments
A bond's interest payments.
Systematic risk
The systematic risk of an asset or portfolio is the risk that cannot be diversified away.
Accelerated cost recovery system (ACRS)
Schedule of depreciation rates allowed for tax purposes.
Unsystematic risk
Also called the diversifiable risk or residual risk. The risk that is unique to a company such as a strike, the outcome of unfavorable litigation, or a natural catastrophe that can be eliminated through diversification.
Two-tier tax system
A method of taxation in which the income going to shareholders is taxed twice.
Systematic risk principle
Only the systematic portion of risk matters in large, well-diversified portfolios. The expected returns must be related only to systematic risks.
Systematic
Common to all businesses.
Split-rate tax system
A tax system that taxes retained earnings at a higher rate than earnings that are distributed as dividends.
Progressive tax system
A tax system wherein the average tax rate increases for some increases in income but never decreases with an increase in income.
Nonsystematic risk
Nonmarket or firm-specific risk factors that can be eliminated by diversification. Also called unique risk or diversifiable risk. Systematic risk refers to risk factors common to the entire economy.
Multirule system
A technical trading strategy that combines mechanical rules, such as the CRISMA (cumulative volume, relative strength, moving average) Trading System of Pruitt and White.
Coastal Barrier Resources System (CBRS)
Designed to save Federal funds, protect human lives, and conserve coastal natural resources.
Specialist System
A type of trading commonly used for the exchange trading of securities in which one individual or firm acts as a market-maker in a particular security, with the obligation to see that trading in that security is fair and orderly by offsetting temporary imbalances in supply and demand by trading for his own account.
