Page 156 - PRIAA Glossary

STANDARD SETTLEMENT INSTRUCTIONS (SSIS)
For derivative transactions, SSIs outline the bank
account details of legal entities for specific currencies and/ or products.
STATIC YIELD (NOMINAL YIELD)
The coupon rate on a bond. The nominal yield is the interest rate (to par value) that the bond issuer promises to pay bond purchasers. Note that buyers who pay a premium will receive a lower actual rate of return than the nominal rate, while investors who pay a discount will receive a higher actual rate of return.
STEPPING IN
The process in a Novation when a third party (the transferee) replaces one of the original parties (the transferor) to a transaction maintaining identical terms to the original transaction. See also “novation”.
STEPPING OUT
The process in a novation where one of the original parties (the transferor) exits a transaction and a third party (the transferee) steps in upon the identical terms and assumes the rights and obligations of the party that is stepping out. See also “novation”.
STOCHASTIC ALPHA BETA RHO (SABR)
A stochastic volatility model which is widely used to provide the functional form for the variation of implied volatility vs. option strike (i.e., the volatility skew).
STOCK BORROW LOAN (SBL)
The lending of securities to a party. Securities lending requires the borrower to put up collateral, whether cash, security or a letter of credit. When a security is loaned, the title and the ownership is also transferred to the borrower. It is used mainly to facilitate short sales.
STOCK CONSOLIDATION
The act of combining existing shares into a smaller amount of shares which reduces the number of shares outstanding
154