Page 34 - PRIAA Glossary

COMMERCIAL POOL
A group of similar size and type vessels, owned by different ship owners that are placed under one administrator or manager. Pools have a stronger negotiating position in freight markets and provide owners with scheduling and other operating efficiencies.
COMMITTEE ON PAYMENT AND SETTLEMENT SYSTEMS (CPSS)
A Bank for International Settlements (BIS) committee
that contributes to strengthening the financial market infrastructure through promoting sound and efficient payment, clearing and settlement systems. It also serves as a forum
for central banks to monitor and analyse developments in domestic payment, settlement and clearing systems, as well as in cross-border and multi-currency settlement schemes.
COMMODITIES
Raw materials, such as oil, metals and crops, which can be traded on local and international commodity exchanges. Commonly traded on a spot basis or as futures contracts.
COMMODITY DERIVATIVE
A derivative contract where the value of the contract is derived from an underlying commodity. Derivative instruments are most commonly cash settled but can sometimes be physically settled.
COMMODITY EXCHANGE ACT
Initially passed in 1936, an act that is meant to regulate commodity futures trading in the United States. The act provides the structure and framework under which the Commodity Futures Trading Commission (CFTC) operates.
COMMODITY FUTURES
An agreement to buy or sell a commodity at a specific date in the future, at a specific price and under standard market terms.
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