Cloud computing is changing the way companies access IT resources. Rather than build out their own infrastructures, firms can use a cloud computing provider to manage its IT infrastructure in a more affordable manner than standard deployment. The provider then delivers those IT services via the Internet. Essentially, the cloud computing model encompasses all or
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“What Is” Foreign Exchange (FX)?
Foreign Exchange (FX) transactions involve the exchange of two currencies. Investors, companies, individuals and government officials use FX for varying purposes. Currencies are traded through global, over-the-counter (OTC) markets and exchanges to buy, sell and speculate on FX transactions. The FX market was established in the 1970’s when international trades transitioned to floating exchange rates.
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“What Is” Market Volatility?
Market volatility is the rate at which any activity in a financial instrument fluctuates on a daily basis. In other words, market volatility is the uncertainty about the size of change in the price of a security. Volatility is generally found by calculating the yearly standard deviation of a daily change in the price of
Compliance
“What Is” The Foreign Account Tax Compliance Act (FATCA)?
The Foreign Account Tax Compliance Act (FATCA) is a regulation enacted by the U.S. federal government to stem tax evasion by US citizens and residents using offshore accounts. Under FATCA, the government will obtain information to foster more transparency into offshore accounts. FATCA is projected to raise $7.6 billion in revenues over the next decade.
Hedge Funds
“What Is” The JOBS Act?
The Jumpstart Our Business Startups (JOBS) Act, signed into law by President Obama on April 2012, is intended to encourage the growth of small businesses and start-ups by helping with funding and easing federal regulations in order to increase the national employment rate. A fundamental provision of the JOBS Act is the creation of an
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“What Is” Social Media Compliance?
Social Media Compliance refers to conformance with regulations governing investors’ safety when securities firms are using social media websites such as Facebook, LinkedIn and Twitter to publicize their services and offerings. The new rules for social media and financial services firms mainly ensure that employees are not exposing information that could put a firm at
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“What Is” FACTA?
The Fair and Accurate Credit Transactions Act (FACTA) was established in order to protect consumers from identity theft by increasing accuracy, privacy and information sharing. FACTA was passed by the U.S. Congress as an amendment to the Fair Credit Reporting Act (FCRA) on November 22, 2003. A major reform, FACTA applies to every individual or
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“What Is” A Commodity?
A commodity is a raw material or agricultural product such as grains, gold, beef, oil and natural gas that can be widely bought and sold across global markets. In general, there are two types of commodities—hard and soft commodities, classified by their predicted life span. Hard commodities include iron, crude oil, gold and silver. Soft
Corporate Actions
“What Is” Cost Basis Reporting?
Cost Basis Reporting (CBR) is the process of identifying the cost of a security, particularly in terms of the rules and regulations implemented by the Internal Revenue Service (IRS). Recently, CBR via brokerages underwent major changes as of Jan. 1, 2011 as a result of the Emergency Economics Stabilization Act of 2008, written to address
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“What Is” ISO 20022?
ISO 20022 is a universal messaging scheme for the financial services industry. It is an international standard designed to simplify financial communication by allowing information to be processed in a clear and consistent manner. ISO 20022 is comprised of metadata and uses a universal dictionary to identify different terms used when processing financial transactions. With
