Trading and Capital-Markets Activities Manual from the Federal Reserve Board

Trading and Capital-Markets Activities Manual
(Source : The Federal Reserve Board)

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The Complete "Trading and Capital-Markets Activities Manual" (539 pages)

Subject Index
(The relevant Section is indicated after the subject)

Accounting, 2060.1, 2120.1
See also specific type of financial instrument.
Equity investments, 4360.1
Examination objectives, 2120.2
Examination procedures, 2120.3
Financial statement disclosures, 2120.5
Hedge-accounting treatment, criteria for, 2120.1
Internal control questionnaire, 2120.4
Mortgage-backed securities, 4110.1
Securities and securitization, 3000.1, 3020.1

Adjusted trading, 3000.1

Asset securitization, 3020.1

Audits, 2000.1
Back-office trading operations, 2060.1
Futures commission merchants, 3030.1
Internal, 2000.1, 2020.1
Risk management, 2000.1
Securities, investment, 3000.1

Back-office trading operations, 2060.1
Examination objectives, 2060.2
Examination procedures, 2060.3
Internal control questionnaire, 2060.4

Bank holding companies
Commercial paper activities, 4010.1
Equity investments, 4360.1
Futures commission merchant activities, 3030.1
Regulatory reports from, 2130.5
Section 20 subsidiaries of, 2140.1

Banks and banking organizations
Equity investments, 4360.1
Investments, legal limits on-See specific type of financial instrument.
Large, complex banking organizations; capital adequacy of, 2110.1
Regulatory reports, 2130.5
Securities, restrictions on holdings of, 3000.1

Board of directors and senior management
Ethics of, 2150.1
Risk-management responsibilities of, 2000.1
Equity investments, 4360.1
Futures commission merchants, 3030.1
Interest-rate risk, 3010.1
Securities and securitization, 3000.1, 3020.1

Bonds
Brady, 4255.1
Corporate, 4045.1
Foreign government
Australian, 4205.1
Canadian, 4210.1
French, 4215.1
German, 4220.1
Irish, 4225.1
Italian, 4230.1
Japanese, 4235.1
Spanish, 4240.1
Swiss, 4245.1
United Kingdom, 4250.1
Treasury, U.S., 4020.1

Brokers and dealers-See Securities.

CAMELS ratings, 3010.1

Capital adequacy, 2110.1
Asset securitizations, 3020.1

Certificates of deposit, 4055.1

Clearinghouses, futures exchange, 3030.1

Codes of conduct, 2150.1-See also Ethics of trading institutions and personnel.

Collateral
Agreements, enforceability of, 2070.1
Arrangements, as credit enhancement, 2020.1

Collateralized loan obligations (CLOs), 4353.1
Synthetic, 2110.1

Collateralized mortgage obligations (CMOs), 4110.1

Commercial paper, 4010.1
Asset-backed, 4105.1
Securitization of, 3020.1

Commodities, 3030.1
Contracts, calculating credit-equivalent amounts for, 2110.1
Price risk of, 2010.1
Trading adviser for, 3030.1
Transactions linked to, 4355.1

Computers, 2040.1

Confidentiality, 2150.1

Confirmations, trade, 2060.1

Conflicts of interest-See Ethics of trading institutions and personnel.

Corporate notes and bonds, 4045.1

Counterparties, unnamed, 2020.1

Counterparty credit risk-See Credit.

Credit
Credit-equivalent amounts, calculating for derivatives, 2110.1
Enhancements, 2020.1, 3020.1
Risk, counterparty credit, 2020.1, 2021.1
See also specific type of financial instrument.
Examination objectives, 2020.2
Examination procedures, 2020.3
Futures commission merchants, 3030.1
Internal control questionnaire, 2020.4
Large, complex banking organizations, 2110.1
Securities and securitization, 3000.1, 3020.1
Secondary-market activities, 3020.1

Credit derivatives, 4350.1
Capital treatment of, 2110.1

Currency swaps, 4335.1

Dealers, securities-See Securities.

Derivatives
Accounting for, 2120.1
Capital adequacy treatment, 2110.1
Credit, 4350.1
Disclosure for, 2120.5
Equity, 4345.1

Documentation-See Reporting, financial and Legal risk.

Earnings-See Financial performance.

End-user activities-See Securities.

Equity investments, 4360.1
Derivatives, 4345.1
Equity-price risk, 2010.1

Ethics of trading institutions and personnel, 2150.1
Examination objectives, 2150.2
Examination procedures, 2150.3
Front-office trading operations, 2050.1
Internal control questionnaire, 2150.4

Eurodollar certificates of deposit, 4055.1

Examinations
Futures commission merchants, 3030.1
Interest-rate risk, 3010.1
Large, complex banking organizations; capital adequacy assessment, 2110.1
Objectives, procedures, and questionnaires-See specific examination topic.
Preparation for, preexamination review, 1000.0
SEC and other agencies, 2140.1
Securitization, asset, 3020.1

Exchange-traded instruments
Credit risk of, 2020.1
Liquidity risk of, 2030.1

Federal funds, 4005.1

Financial holding companies (FHCs), 4360.1

Financial performance, 2100.1
Examination objectives, 2100.2
Examination procedures, 2100.3
Internal control questionnaire, 2100.4

Financial statements, 2120.5

Foreign-currency instruments, 2120.1

Foreign exchange, 4305.1
Nondeliverable forward (NDF) transactions, legal risk of, 2070.1
Risks of, 2010.1
Commercial paper, 4010.1
Settlement, 2021.1

Forward rate agreements, 4315.1

Forwards-See Futures and forwards.

Front-office trading operations, 2050.1
Examination objectives, 2050.2
Examination procedures, 2050.3
Internal control questionnaire, 2050.4

Funding-liquidity risk, 2030.1

Futures and forwards, 4310.1, 4320.1
See also Futures commission merchants.
Accounting for, 2120.1
Exchanges, trading on, 3030.1
Financial futures, 4320.1

Futures commission merchants, 3030.1
Examination objectives, 3030.2
Examination procedures, 3030.3

Gains trading, 3000.1

Hedge funds, 2020.1

Hedging-See also specific type of financial instrument.
Credit derivatives, 4350.1
Currency swaps, 4335.1
Futures, 4320.1
Hedge-accounting treatment, criteria for, 2120.1
Interest-rate swaps, 4325.1
Liquidity risk of, 2030.1
Mortgage-backed securities, 4110.1
Options, 4330.1

Holdback reserves, 2100.1

Income, 2100.1
See also Reporting, financial.

Insider information, 2150.1

Institutions, trading, 1010.1
See also Board of directors and senior management and specific area of institution.

Interest-rate risk, 2010.1
Large, complex banking organizations, 2110.1
Management of, 3010.1
Examination objectives, 3010.2
Examination procedures, 3010.3
Internal control questionnaire, 3010.4

Interest-rate swaps, 4325.1

Internal audit-See Audits.

Internal controls
Back-office trading operations, 2060.1
Equity investments, 4360.1
Futures commission merchants, 3020.1
Interest-rate risk, 3010.1
Investment securities and end-user activities, 3000.1
Questionnaires for examining-See specific examination topic.
Risk management, general, 2000.1
Securities and securitization, 3000.1, 3020.1

Internal models-See Models, risk-measurement.

International trading operations and transactions
See also Bonds; Foreign-currency instruments; Foreign exchange; Notes. Foreign banks, U.S. branches and agencies of, 2130.1
Futures commission merchants, 3030.1
Securities, 2140.1, 3000.1
Settlement of foreign payments, 2060.1

Investments, 3000.1, 4105.1
See also specific type of financial instrument.
Equity, 4360.1
Limitations on, 3000.1, 4105.1

Investors, institutional, 2020.1

Legal risk, 2070.1

Legal risk-continued
Examination objectives, 2070.2
Examination procedures, 2070.3
Securities and securitization, 3000.1, 3020.1

Liquidity risk, 2030.1
See also specific type of financial instrument.
Asset securitization, 3020.1
Examination objectives, 2030.2
Examination procedures, 2030.3
Futures commission merchants, 3030.1
Internal control questionnaire, 2030.4
Securities and securitization, 3000.1, 3020.1

Management information systems (MIS), 2040.1
Credit risk, 2020.1
Examination objectives, 2040.2
Examination procedures, 2040.3
Futures commission merchants, 3030.1
Internal control questionnaire, 2040.4
Liquidity risk, 2030.1
Operations and systems risk, 2040.1
Reports to management, adequacy of, 2060.1, 2100.1
Securities, investment, 3000.1

Management of trading institutions-See Board of directors and senior management.

Margin requirements, 3030.1

Market risk, 2010.1
See also specific type of financial instrument.
Capital adequacy, as component of, 2110.1
Examination objectives, 2010.2
Examination procedures, 2010.3
Futures commission merchants, 3030.1
Interest-rate risk, 3010.1
Internal control questionnaire, 2010.4
Large, complex banking organizations, 2110.1
Limits, 2010.1
Liquidity risk, 2030.1
Measures, 2010.1
Securities, investment, 3000.1

Master agreements, 2070.1

Master trust structures, 4353.1

Merchant banking, 4360.1

Models, risk-measurement, 2040.1
Capital calculations, 2110.1
Market risk, 2110.1
Pricing, 2100.1

Mortgage-backed securities, 4110.1

Municipal securities, 4050.1

Netting agreements, 2110.1
Accounting for, 2120.1
Legal risks, 2070.1
Operational issues, 2070.1

Notes
Corporate, 4045.1
Foreign government
French, 4215.1
German, 4220.1
Italian, 4230.1
Japanese, 4235.1
Swiss, 4245.1
Structured, 4040.1
U.S. Treasury, 4020.1

Operations and systems risk
See also Back-office trading operations;
Front-office trading operations;
Management information systems.
Large, complex banking organizations, 2110.1
New products, 2040.1, 3000.1

Options, 4330.1
Accounting for, 2120.1
Market risk, measures of optionality, 2010.1
Pricing, 4330.1

Organizational structure, 1010.1
Front-office trading operations, 2050.1
Risk-management operations, 2000.1

Over-the-counter (OTC) instruments-See Securities.

Pair-offs, 3000.1

Personnel of trading institutions
Back-office roles, 2060.1
Ethics and conduct of, 2150.1
Expertise and competence of, 2040.1, 2050.1
Front-office roles, 2050.1

Preexamination review-See Examinations.

Presettlement risk, 2020.1

Pricing, 2100.1
See also specific type of financial instrument.

Products, trading
New, 2040.1, 3000.1
Revaluation of, 2060.1, 2100.1
Risks of, 2030.1

Profits and losses-See Financial performance.

Recordkeeping-See Reporting, financial.

Regulations
Compliance with, 2140.1
Examination objectives, 2140.2
Futures commission merchants, 3030.1

Regulation Y, 3030.1

Reporting, financial, 2120.1, 2120.5
See also Management information systems.
Back-office trading operations, 2060.1
Equity investments, 4360.1
FFIEC reports, 2130.5
Financial performance, 2100.1
Financial statements, disclosures, 2120.5
Front-office trading operations, 2050.1
FR-Y series reports, 2130.5
Futures commission merchants, 3030.1
Legal requirements, 2070.1
Regulatory requirements, 2130.1, 2130.5, 2140.1
See also Regulations.
Accounting standards and guidelines for, 2120.1
Examination objectives, 2130.2
Examination procedures, 2130.3
Internal control questionnaire, 2130.4
Risk, 3000.1
Futures commission merchants, 3030.1
Interest-rate risk, 3010.1
Transaction, 2050.1
Ticket flow, 2060.1

Repurchase agreements (repos), 4015.1

Reputation risk, 3030.1

Reserves, 2100.1, 2030.1

Risk-based capital weighting, 2110.1
See also specific type of financial instrument.

Risk management, 2000.1
See also specific type of risk.
Asset securitizations, 2110.1, 3020.1
Capital adequacy considerations, 2110.1
Counterparty credit risk, 2020.1, 2021.1
Equity investments, 2010.1, 4360.1
Funding-liquidity risk, 2030.1
Futures commission merchants, 3030.1
Market risk, simulations for, 2010.1
Organization, 1010.1
Overview, preparation for examination, 1000.1
Securities, 3000.1
Sound practices for, overview, 2000.1

Secondary-market credit activities, 3020.1

Securities
See also Derivatives and specific type of financial instrument.
Accounting for, 2120.1
Agency, U.S. government, 4035.1
Asset-backed, 3020.1, 4105.1
Available-for-sale, 2120.1
Broker-dealers, 2140.1
Brokers
Brokers' points, unacceptable trading practice, 2050.1
Commissions and fees, 2060.1
Futures commission merchants, risks associated with, 3030.1
Classifications of, 3000.1
Dealers, selection of, 3000.1
Exchange-traded instruments
Credit risk of, 2020.1
Liquidity risk of, 2030.1
Held-to-maturity, 2120.1
Inflation-indexed, U.S. Treasury, 4030.1
Investment, 3000.1
Examination objectives, 3000.2
Examination procedures, 3000.3
Internal control questionnaire, 3000.4
Practices, unsuitable, 2050.1, 3000.1
Municipal, 4050.1
Over-the-counter instruments
Credit risk of, 2020.1
Liquidity risk of, 2030.1
Residential mortgage-backed, 4110.1
Trading, 2120.1
U.S. government, 4020.1, 4025.1, 4030.1

Securities and Exchange Commission

(SEC), 2120.1, 2120.5

Securitization of assets, 3020.1

Self-regulatory organizations (SROs), 2140.1, 3030.1

Settlement risk, 2021.1
Extended settlement, 3000.1

Short sales, 3000.1

Simulations, 2010.1

Special-purpose vehicles (SPVs), 2020.1
Synthetic collateralized loan obligations, 2110.1

Specific risk
Capital charge for, determining, 2110.1

Stress testing
Interest-rate risk, 3010.1
Market risk, 2010.1
Securities and securitization, 3000.1, 3020.1

STRIPS, U.S. Treasury, 4025.1

Structured notes, 4040.1

Swaps
Credit-equivalent amounts for, calculating, 2110.1
Currency, 4335.1
Interest-rate, 2120.1, 4325.1
Netting of, 2110.1

Swaptions, 4340.1

Systems risk-See Back-office trading operations; Front-office trading operations; Management information systems.

Tickets, trading, 2060.1

Trademark products, 4025.1

Trading transactions
Confirmation of, 2060.1
Consummation of, 2050.1
Discrepancies and disputed trades, 2060.1
Income, attribution of, 2100.1
Legal structure of firm engaging in, 1010.1
Netting agreements, 2070.1
Reconciliation, 2060.1
Reporting of, 2050.1
Settlement, 2060.1
Unacceptable trading practices, 2050.1, 3000.1
Valuation of positions, 2100.1

Training
Front-office operations, 2050.1

Treasury, U.S.
Bills, notes, and bonds, 4020.1
Inflation-indexed securities, 4030.1
STRIPS, 4025.1

Trigger events, 2070.1

Valuation, 2100.1

Value-at-risk, 2010.1, 2110.1

When-issued trading, 3000.1