Английский язык. Практический курс для решения бизнес-задач - Нина Пусенкова

Chicago Mercantile Exchange (CME) pioneered the first…….. futures contracts in 1972. In March 2003, the total………value of……. trading at CME was U.S. $347.5 billion. Currency futures are……… on the………. cash and forward exchange rates.

A futures contract is a legally………. contract to buy or sell a commodity or financial………. at a certain price at a specified date in the future. Futures markets thrive because they attract two types of………: hedgers and speculators. Hedgers, such as producers and processors of commodity products, seek to protect against adverse changes in the…….. cash price that may impact their business. Speculators include investors and traders who want to……..from price changes. Speculators accept the price…….. and……… that hedgers wish to avoid. Futures markets provide the forum in which speculators can buy or sell contracts quickly and – just as quickly —…… their…….. to react to market changes.

At CME, a U.S. government-regulated marketplace, currency futures trade via……. on the CME trading floor and on CME’s electronic trading platform. These CME FX markets are integrated by floor traders via wireless…….. to provide customers with efficient, fluid access to both pricing pools.

CME benefits foreign exchange participants, including………, large banks, hedge funds and……… All of these players come together at CME to speculate and hedge on currency market……….

CME delivers efficient………. trading venues for rapid FX trade execution supported and monitored by experienced industry professionals. CME FX customers access…….. markets, efficient…….. services, and 24-hour-a-day customer support. Futures commission merchants facilitate customer trading at CME in exchange for brokerage…….

Most currency contracts at CME are traded on the March quarterly cycle and go through a…….. delivery process four times a year on the third Wednesday of March, June, September and December. However, the Mexican peso and the South African rand are traded on all 12 calendar months. There are two……. contracts – the Brazilian real, traded on all twelve calendar months, and the Russian ruble, traded on the March quarterly cycle.

Source: www.cme.com

Terms:

E-trading, fluctuations, underlying, physical, positions, «open outcry», liquid, fees, marketplace, FX, cash-settled, risks, clearing, individual investors, transactions, traders, contracts, negotiated, counterparties, delivery, currency, notional, derivatives, interbank, binding, instrument, profit, rewards, exit, transparent, MNCs

Exercise 5. Translate into English.

Портрет Группы ММВБ

ММВБ – крупнейшая универсальная биржа в России, странах СНГ и Восточной Европы

В настоящее время Группа ММВБ, интегрирующая на единой технологической платформе торговую и расчетные системы, занимает центральное место в инфраструктуре российского рынка капитала. В Группу входят ЗАО ММВБ, Фондовая биржа ММВБ, Национальная товарная биржа, Расчетная палата ММВБ, Национальный депозитарный центр, Национальный клиринговый центр, региональные биржи и др. Они осуществляют торговое, расчетно-клиринговое и депозитарное обслуживание около 1500 ведущих российских банков и брокерских компаний – участников биржевого рынка как в Москве, так и в крупных финансово-промышленных центрах России.

История Группы начиналась в первой половине 1990-х годов, когда в ходе рыночных реформ ведущими российскими банками и Банком России была учреждена Московская межбанковская валютная биржа (ММВБ), изначально ориентированная на организацию торгов иностранной валютой. С первых дней работы биржевого валютного рынка и поныне курс доллара на ММВБ является индикатором проводимых в стране экономических реформ.

В настоящее время на ММВБ функционируют несколько ключевых рынков: валютный – с 1992 г., рынок государственных облигаций – с 1993 г., рынок производных финансовых инструментов – с 1996 г., рынок акций – с 1997 г., рынок корпоративных и региональных облигаций – с 1999 г., денежный рынок – с 2004 г. Внедрив в процессе развития современную электронную торгово-депозитарную систему, ММВБ стала универсальной финансовой биржей, на основе которой создана общенациональная система торгов на всех основных сегментах финансового рынка. Это и стало основой Группы ММВБ, которой удалось главное – создать рыночные механизмы определения курса российского рубля и привлечения инвестиций в экономику страны. Практически за эти годы была построена инфраструктура национального рынка капиталов с использованием наиболее передовых биржевых и информационных технологий.

По совокупному объему торгов (в 2005 г. – $ 925 млрд, среднедневной объем сделок – $ 3,7 млрд) ММВБ является крупнейшей биржей в России, странах СНГ и Восточной Европы. В настоящее время под эгидой Международной ассоциации бирж стран СНГ (МАБ СНГ) реализуется проект создания условий для формирования интегрированного организованного фондового рынка на технологической основе национальных бирж стран Содружества.

Основные направления деятельности ММВБ. Валюта

Торги иностранной валютой на ММВБ проходят в системе электронных торгов (СЭЛТ), которые объединяют в рамках единой торговой сессии восемь межбанковских валютных бирж. С 1992 г. Центральный банк РФ устанавливает официальный курс российского рубля с учетом результатов валютных торгов на ММВБ. Суммарный объем сделок с иностранной валютой в 2005 г. составил 592 млрд долл. США. В настоящее время на валютном рынке ММВБ создана эффективная система управления рисками, позволяющая гарантировать своевременное исполнение обязательств всеми участниками торгов. Одним из элементов этой системы является принцип «платеж против платежа» (payment versus payment), в соответствии с которым ММВБ осуществляет расчеты с участником торгов только после исполнения им своих обязательств. Основными торгуемыми валютами на ММВБ являются доллар США и евро. Членами секции валютного рынка ММВБ являются свыше 530 кредитных организаций. В рамках Национальной валютной ассоциации (НВА) биржа участвует в разработке и внедрении «Стандартов работы на внутреннем валютном и денежном рынках».

Источник: www.micex.ru

Lesson 28

Stock Exchanges

Read and translate the text and learn terms from the Essential Vocabulary.

Getting to Know Stock Exchanges

A stock exchange does not own shares. Instead, it acts as a sort of high-tech flea market where buyers connect with sellers. Every public stock trades on one of several possible exchanges such as the New York Stock Exchange (NYSE) or American Stock Exchange (AMEX).

How Does It All Start?

The primary function of an exchange is to provide liquidity (the ease with which securities can be bought and sold without wide price fluctuations); in other words, to give sellers a place to «liquidate» their share holdings.

Stocks first become available on an exchange after a company conducts its initial public offering (IPO). In an IPO, a company sells shares to an initial set of public shareholders (a.k.a. the primary market). After the IPO «floats» shares into the hands of public shareholders, these shares can be sold and purchased on an exchange (a.k.a. the secondary market).

The exchange tracks the flow of orders for each stock, and this flow of supply and demand sets the price of the stock. Depending on the type of brokerage account you have, you may be able to view this flow of price action. For example, if you see that the «bid price» on a stock is $40, this means somebody is telling the exchange that he or she is willing to buy the stock for $40. At the same time you might see that the «ask price» is $41, which means somebody else is willing to sell the stock for $41. The difference between the two is the bid-ask spread.

Auction Exchanges – NYSE and Amex

The NYSE and AMEX are both primarily auction based, which means specialists are physically present on the exchanges’ trading floors. Each specialist «specializes» in a particular stock, buying and selling the stock in a verbal auction. These specialists are under competitive threat by electronic-only exchanges that claim to be more efficient (that is, execute faster trades and exhibit smaller bid-ask spreads) by eliminating human intermediaries.

The NYSE is the largest and most prestigious exchange. Its listed companies represent about $18 trillion in market capitalization. AMEX is a smaller but quite prestigious exchange. AMEX also has a history of innovating: it pioneered the concept of exchange traded funds and it has the second largest options trading market.

New York Stock Exchange

Milestones. The NYSE traces its origins to a founding agreement in 1792. The NYSE registered as a national securities exchange with the SEC on October 1, 1934. The Governing Committee was the primary governing body until 1938, at which time the Exchange hired its first paid president and created a thirty-three member Board of Governors. The Board included Exchange members, non-member partners from New York and out-of-town firms, as well as public representatives.

In 1971, the Exchange was incorporated as a not-for-profit organization. In 1972, the members voted to replace the Board of Governors with a twenty-five member Board of Directors, comprised of a Chairman and CEO, twelve representatives of the public, and twelve representatives from the securities industry.

Subject to the approval of the Board, the Chairman may appoint a President, who would serve as a director. Additionally, at the Board’s discretion, they may elect an Executive Vice-Chairman, who would also serve as a director.

The Auction Market. The NYSE is an agency auction market. It means that trading at the NYSE takes place by open bids and offers by Exchange members, acting as agents for institutions or individual investors. Buy and sell orders meet directly on the trading floor, and prices are determined by the interplay of supply and demand.

At the NYSE, each listed stock is assigned to a single post where the specialist manages the auction process. NYSE members bring all orders for NYSE-listed stocks to the Exchange floor either electronically or by a floor broker. As a result, the flow of buy and sell orders for each stock is funneled to a single location.

This heavy stream of diverse orders is one of the great strengths of the Exchange since it provides liquidity. When an investor’s transaction is completed, the best price will have been exposed to a wide range of would-be buyers and sellers .

Benefits of NYSE. Listing on the NYSE affords companies great credibility because they must meet initial listing requirements and also comply annually with maintenance requirements. For example, to remain listed, NYSE companies must keep their price above $1 and their market capitalization above $50 million.

Furthermore, investors trading on the NYSE benefit from a set of minimum protections. Among several of the requirements that the NYSE has enacted, the following two are especially significant:

1. Companies must get shareholder approval for any equity incentive plan. In the past, companies were allowed to sidestep shareholder approval if an equity incentive plan met certain criteria; this, however, prevented shareholders from knowing how many stock options were available for future grant.

2. A majority of the members of the board of directors must be independent. Furthermore, the compensation committee must be entirely composed of independent directors, and the audit committee must include at least one person who possesses «accounting or financial expertise».

How a Stock is Bought and Sold. This chart is a detailed explanation of how a stock is traded. It illustrates how one transaction looks from three different perspectives – the buyer, seller and the stock market professionals who execute the trade.

Market Regulation. Every transaction made at the NYSE is under continuous surveillance during the trading day. The NYSE is the most active self-regulator in the securities industry. Regulations protect the integrity of the marketplace, member firms, and, most importantly, the customer.