Congressional Edition Volume . 7671
This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1920 edition. Excerpt: ...resumed. With the exception of the Paris Bourse, trading for the account or settlement has not begun again. In London a resumption is expected as soon as the defense of the realm act is abrogated. In all markets having term settlements loans on stock exchange collateral are made for the period of the settlement and substitutions of securities in loans during that period are unusual. In London particularly the purchaser or seller for cash has to pay a higher or receive a lower price, and, as stamp taxes and additional fees contribute to making cash operations more expensive, the volume of cash trading is comparatively small. The call money market is not based on stock exchange collateral but the bulk of the call loans is made on acceptances and special governmental obligations. As in the operations of a term settlement, described hereinafter, the brokers know what their money requirements will be for the ensuing account a day or two in advance of the final settlement day of the current account, they are enabled to make their banking arrangements with the least possible disturbance, the discount market in the final analysis acting as the regulator of excess demand or supply of stock exchange money. In addition to banks, many banking or semibanking firms make a practice of carrying brokers over from one settlement to another at an interest charge somewhat higher than current banking rates for the account, as more fully described hereafter in the operation of the Contango in London. On these loans no margin is required. On the other hand, banks insist on margins on stock exchange loans of about 10 points, instead of the usual 20 per cent required by New York institutions. This margin must be kept good. In a market having a daily settlement as...
- 189 x 246 x 18mm | 612g
- 13 Sep 2013
- United States
- black & white illustrations