Page 108 - PRIAA Glossary

MARKET COUNTERPARTY
An entity dealing as an agent or principal with a broker and involved in the same nature of investment business as the broker.
MARKET MAKER
A dealer who is prepared to create a two-way market by quoting simultaneous bid and offer prices. Market makers are licensed by exchanges and are charged lower than the normal dealing fees for their services to that market, however accept an obligation to quote.
MARKET ORDER
An order to buy or sell a futures contract or option at the prevailing market price when the order reaches the floor of the exchange.
MARKET QUOTATION
A measure for determining termination payments following an event of default or termination event under the 1992 ISDA Master Agreement. Quotations for the replacement value of the terminated transactions are requested from four leading dealers in the relevant market (reference market makers) and the arithmetic mean of the quotations obtained will be used, disregarding the highest and lowest quotation.
MARKET-IF-TOUCHED (MIT) ORDER
An order that becomes a market order when a particular price is reached. A sell MIT order is placed above the market; a buy MIT order is placed below the market. Also referred to as a board order. Compare to a “stop order”.
MARKETS IN FINANCIAL INSTRUMENTS DIRECTIVE (MiFID)
Regulatory framework which aims to provide uniform regulations across the European Economic Area (EEA) for
the financial and investment services sector. The uniform regulations facilitate the freedom of movement for goods, services and capital across the member countries in exchange for adhering to the European Union laws and policies.
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