Additional Fintech Subsectors

Fintech is the term used to describe a vast array of financial service companies. Numerous sectors are covered by this term, which goes beyond the main fintech categories. These include…

Base currency

In a currency pair quote, the base currency, also known as the primary currency, is the first currency shown. The second currency shown is referred to as the quote currency. Currencies…

Basis points (bp)

One basis point is equal to 1/100 of one percentage point or 0.01. This means that a rise of 1% is expressed as an increase of 100 basis points. In finance,…

Bid/Ask price

In foreign exchange, as in all financial markets, the bid price is the price that a buyer is willing to pay to acquire a particular asset, while the ask price…

Bitcoin

Bitcoin is a consensus network that enabled a new payment system and a digital currency, which was created in 2009. It is the first decentralized peer-to-peer payment network powered by…

Business foreign exchange

Business foreign exchange is the trading of currencies for purposes of real trade and not for speculation. This activity represents approximately 2% of the global $5.3 trillion daily FX market. The…

Cash flow hedge

A cash flow hedge is an investment position sold by banks and brokers to offset the losses and profit damage that could result from variations in prices. Example: a euro-denominated importer…

Central bank

A central bank is an autonomous or semi-autonomous institution entrusted with managing a state or monetary union’s monetary supply, currency and interest rates. They usually supervise the local commercial banking…

Central Counterparty Clearing House (CCP)

Central counterparty clearing houses (CCP) are entities, which are often operated by major banks, and are located in several European countries. They were created to make it easier to trade…

China National Advanced Payments System (CNAPS)

The China National Advanced Payments System (CNAPS) is national payment protocol launched by the People’s Bank of China, as a part of a wider plan to increase the global use…

Chinese yuan

The Chinese yuan, or renminbi, is the official currency of the People’s Republic of China. Its ISO code is CNY although RMB can also be used. The yuan is the…

Chinese Yuan Payment

The Chinese yuan (CNY), is also commonly referred to as renminbi (RMB) and is the currency of mainland China, excluding Hong Kong and Macau. On 30 November, 2015, the IMF announced…

Clearing

Clearing (the clearing of payments) is the process by which an intermediary entity acts to ensure a transaction is carried out, from the initial agreement between the two counterparties to…

Client bank account

A client bank account is a bank account whose sole purpose is to hold client funds for transactional purposes. As client accounts cannot be accessed by third parties and are…

Close-out netting

Close-out netting is a netting method that reduces pre-settlement credit risk. It only applies to transactions between parties where there is a default. In close-out netting, the non-defaulting company is no…