marking to market

This process is known as marking to market.

Because the subsidiary is unregulated, it may not have to record changes in the asset's value, known as marking to market.

It postpones the marking to market of bank assets.

It is therefore the perfect moment for a short-selling advocate of marking to market to publish his account.

This test supports the view that marking to market with stochastic interest rates can have a small but measurable effect on futures prices.

However, a forward is not traded on an exchange and thus does not have the interim partial payments due to marking to market.

The clearing house withstands all the credit risk involved in being the counterparty to every transaction, by using the system of daily marking to market.

(this reflects instantaneous marking to market)

Marking to market, calculating the net market value of the assets and liabilities, sometimes called the "market value of portfolio equity"

The tri-party agent is responsible for the administration of the transaction including collateral allocation, marking to market, and substitution of collateral.

During January 2010, Adair Turner, Chairman of the UK's Financial Services Authority, said that marking to market had been a cause of exaggerated bankers' bonuses.

Thus on the delivery date, the amount exchanged is not the specified price on the contract but the spot value (since any gain or loss has already been previously settled by marking to market).

Futures contracts eliminate the problems of illiquidity and credit risk associated with forward contracts by introducing a clearing house, a system of marking to market and margin payments, and a system of price limits.

How do you propose to insure a proper degree of public oversight of investments by elected officials in the absence of periodic marking to market value of public investment portfolios and public disclosure of those values?

"When you are marking to market long-term contracts where there is no benchmark, then the attempt to take that amount into income strikes me as illegitimate," said John C. Coffee Jr., a professor of securities law at Columbia University.

To do so, the broker-dealer first computes its equity under Generally Accepted Accounting Principles ("GAAP") by marking to market securities and other assets and then reduces that computation by the amount of "illiquid assets" it holds.

In the private sector, by contrast, "the most common basis for valuing collateral is marking to market with a discount based on the volatility and liquidity of the underlying collateral," said Robert J. Grossman, managing director of Fitch Investors Service, a credit rating service.

It involves both buyer and seller putting up an initial margin based on the estimated sensitivity of the option price with respect to the price of the underlying asset (the option "delta" ), with subsequent marking to market on a daily basis via variation margin.