Page 100 - PRIAA Glossary

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LADDER OPTION
An option that locks in gains once the underlying asset reaches certain price levels, even if the underlying falls below these levels before the option expires.
LARGE TRADER
An entity with positions at or above specific thresholds set by the SEC. Any entity satisfying these conditions must identify themselves as a large trader with the SEC.
LCH.CLEARNET LTD
A European-based recognised clearing house (RCH) that provides clearing services for major international exchanges and over-the-counter (OTC) markets. LCH.Clearnet clears
a broad range of asset classes, including commodities, securities, exchange traded derivatives, credit default swaps, energy contracts, freight derivatives, interest rate swaps, foreign exchange and Euro and Sterling denominated bonds and repos.
LEGAL ENTITY IDENTIFIER (LEI)/UNIQUE COUNTERPARTY IDENTIFIER (UCI)
A 20-digit alphanumeric universal and unique code to identify counterparties and any legal entity or structure involved in a financial transaction, thereby creating consistent data trails. LEIs were created in response to a directive from the G-2 to the Financial Stability Board. EMIR requires all entities to have an LEI code.
LEGALLY SEGREGATED OPERATIONALLY COMMINGLED (LSOC)
The only type of segregation that is allowed under the Dodd-Frank regulation. Under this type of segregation,
the client’s collateral can be stored in a single account (operationally commingled) but record keeping distinguishes between different clients (legally segregated). Thus,
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