Page 149 - PRIAA Glossary

holding the assets. Segregated assets may be operationally comingled or may be kept separated. They are ring fenced in the event that the custodian or financial institution enters into bankruptcy proceedings.
SELF-REGULATORY ORGANISATIONS
A non-government entity with the ability to implement and enforce regulations and standards. Examples include stock exchanges and the Financial Industry Regulatory Authority.
SENSITIVITY ANALYSIS
A risk management technique where values or factors are shocked and a P&L is calculated.
SERIES (OF OPTIONS)
Options of the same type (meaning either puts or calls, but not both), which cover the same underlying asset, having the same strike price and maturity month.
SERVING NOTICE
A term used to refer to the process of informing a counterparty that the party serving notice will terminate transactions under an ISDA Master Agreement as a result of an Event of Default or Termination Event. An Early Termination Date occurring no later than twenty days from the Effective Date of notice must be stipulated in the notice.
SETTLEMENT
The process whereby obligations arising under a transaction are discharged through payment and/or delivery.
SETTLEMENT METHOD ELECTION
A process whereby the electing party (determined at the time of trade) has the choice of specifying cash settlement or physical settlement at expiry, rather than specifying at time of trade which settlement method will be used. If no choice is made, there will be a default method specified in the confirmation. The choice must be made prior to a specified date.
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