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Fed

• Is the Federal Reserve Bank.

 
 Embedded terms in definition
 Reserve
 
 Referenced Terms
 All in cost: Total costs, explicit and implicit.Total costs, explicit and other. Example: The all-in cost to a bank of CD money is the explicit rate of interest it pays on that deposit plus the FDIC premium it must pay on the deposit plus the hidden cost it incurs because it must hold some portion of that deposit in a non-interest-bearing reserve account at the Fed.

 Blind broker: A broker who acts as principal and does not give up names to either side of a brokered trade. Blind brokering of securities is common, whereas blind brokering of Fed funds and Euro time deposits would be infeasible.

 Book entry securities: The Treasury and Federal agencies are moving to a book-entry system in which securities are not represented by engraved pieces of paper but are maintained in computerized records at the Fed in the names of member banks, which, in turn, keep records of the securities they own as well as those they are holding for customers. In the case of other securities for which there is a book- entry system, engraved securities do exist somewhere in quite a few cases. These securities do not move from holder to holder but are usually kept in a central clearinghouse or by another agent.The Treasury and Federal agencies are moving to a book-entry system in which securities are not represented by engraved pieces of paper but are maintained in computerized records at the Fed in the names of member banks, which in turn keep records of the securities they own as well as those they are holding for customers. In the case of other securities where a book-entry has developed, engraved securities do exist somewhere in quite a few cases. These securities do not move from holder to holder but are usually kept in a central clearinghouse or by another agent.

 Book entry securities: The Treasury and Federal agencies are moving to a book-entry system in which securities are not represented by engraved pieces of paper but are maintained in computerized records at the Fed in the names of member banks, which, in turn, keep records of the securities they own as well as those they are holding for customers. In the case of other securities for which there is a book- entry system, engraved securities do exist somewhere in quite a few cases. These securities do not move from holder to holder but are usually kept in a central clearinghouse or by another agent.The Treasury and Federal agencies are moving to a book-entry system in which securities are not represented by engraved pieces of paper but are maintained in computerized records at the Fed in the names of member banks, which in turn keep records of the securities they own as well as those they are holding for customers. In the case of other securities where a book-entry has developed, engraved securities do exist somewhere in quite a few cases. These securities do not move from holder to holder but are usually kept in a central clearinghouse or by another agent.

 Cash settlement: Is the practice of making a final cash payment or adjustment for an open position. This process differs from early or traditional futures markets that required either a futures contract offset or the delivery of a physical commodity. The cash settlement process recognizes the insurability factor of risk management products. This trend towards cash settlements reduces instability due to squeezes, weather, or other disruptive variables.In the money market, a transaction is said to be made for cash settlement if the securities purchased are delivered against payment in Fed funds on the same day the trade is made.

 
 Related Terms
 Fed funds
Forward fed funds
Term fed funds

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