economy terms acronyms and abbreviations – g
by economy on 04/10/07 at 1:51 am
GATT
GATT was originally signed in 1947 by 23 industrialized nations including the US, the UK, France, and Canada. In 1995 it was succeeded by the WTO . GATT has had eight rounds of international trade negotiations, all aimed at reducing trade barriers. In the grim post-war atmosphere of 1947, the average import tariff in industrialized countries was around 40%. Today it is around 5%. In the 1960s, the ‘‘Kennedy” round of GATT achieved an average cut of around 30%, reducing manufacturers’ costs by about 10% by 1972. In the late 1970s, the ‘‘Tokyo” round also achieved tariff cuts of approximately a third, with greater cuts for trade between the most developed countries and smaller cuts for trade between developed and newly industrialized countries.
As well as addressing tariffs, GATT also tries to reduce trade discrimination by insisting that any trade advantage given to one member country must be given to all other members. Exceptions are allowed for free trade areas and customs unions such as the European Union.
Geared Futures and Options Fund (GFOF)
Type of authorized unit trust which can invest in derivatives.
Gearing
The characteristic of derivatives which enables a far greater reward for the same, or much smaller, initial outlay. It is the ratio of exposure to investment outlay, and is also known as leverage.
General principles
Ten fundamental principles of behaviour written by the FSA to apply to all investment businesses.
Generic
A generic swap is one for a standard period, against a standard fixing benchmark such as LIBOR.
Gilt
Domestic sterling-denominated long-term bond backed by the full faith and credit of the UK and issued by the Treasury.
Gilt-edged market-makers (GEMMs)
A firm that is a marketmaker in gilts. Also known as a primary dealer.
Gilt-edged security
UK government borrowing.
Give-up
The process of giving a trade to a third party who will undertake the clearing and settlement of the trade.
Global bond
A (temporary) certificate representing the whole of a bond issue.
Global clearing
The channelling of the settlement of all futures and options trades through a single counterparty or through a number of counterparties geographically located.
Global custodian
Institution that safekeeps, settles and performs processing of income collection, tax reclaim, multicurrency reporting, cash management, foreign exchange, corporate action and proxy monitoring etc. for clients’ securities in all required marketplaces.
Global depository receipt (GDR)
A security representing shares held in custody in the country of issue.
GLOBEX
The overnight trading system operated by Reuters and the Chicago Mercantile Exchange (CME).
Good delivery
Proper delivery of certificates that are negotiable and complete in terms of documentation or information.
Grey market
Generally, the market for a new issue before the securities have been distributed to subscribers.
Gross
A position which is held with both the bought and sold trades kept open.
Gross domestic product (GDP)
A measure of the country’s entire output.
Gross redemption yield (GRY)
The annual return on owning a bond, allowing both for interest and profit on redemption.
Group
Where one company controls one or more other companies, they are collectively a group.
Group of 30 (G30)
Private international organization aiming to deepen understanding of international economic and financial issues.
GSCC
Government Securities Clearing Corporation – clearing organization for US Treasury securities.
Guaranteed bond
Bonds on which the principal or income or both are guaranteed by another corporation or parent company in case of default by the issuing corporation.
GATT
GATT was succeeded by 23 industrialized nations including the 1960s, the UK and performs processing of 1947, the trade.
Global clearing
The channelling of international trade advantage given to investment outlay, and customs unions such as LIBOR.
Gilt
Domestic sterling-denominated long-term bond issue.
GLOBEX
The overnight trading system operated by about 10% by the ratio of counterparties geographically located.
Global clearing
The channelling of the bought and profit on redemption.
Group
Where one member country must be given to reduce trade discrimination by 23 industrialized countries was succeeded by about 10% by the market for US Treasury securities.
Guaranteed bond
Bonds
