Page 53 - PRIAA Glossary

DISCRETE TOTAL RETURN SWAP (DTRS)
An equity total return swap on a single stock or a basket of stocks. DTRSs are confirmed under long-form confirmations (without a Master Confirmation Agreement (MCA), under bespoke/in-house MCAs or under the ISDA Equity Finance Swap Annex.
DISCRETIONARY ACCOUNT
A securities account where a client gives another person or firm the authority to buy and sell securities on its behalf without prior consultation. The client can set expansive guidelines for his investments when the account is opened. For example, the client can say that he or she wants to buy/ sell only BBB or higher securities.
DISPERSION TRADE
A structure in which one party sells an option on an Index and simultaneously buys individual options on each of the index constituents or vice versa. The buyer profits from dispersion trading if his index components are negatively correlated.
DISPUTE RESOLUTION
The process of resolving a dispute that arises because trades, collateral requirements or contractual obligations have not been fulfilled by the obligor.
DISRUPTED DAY
Any scheduled trading day on which regular functioning is impacted due to a market disruption event or the relevant exchange or related exchange fails to open during its normal business hours.
DISRUPTIVE TRADING PRACTICE
An amendment of the Dodd-Frank Act that forbids any trading that:
i. Violates bids or offers
ii. Exhibits disregard for the orderly execution of trades during the closing period of a trading day
iii. Enters bids and offers with the purpose of cancelling prior to the execution of a transaction
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