SHOP

See Principal Trading Firm.

Investors that trade for their own account and do not have traditional customers. PTFs employ algorithmic and high frequency trading strategies, generally do not hold overnight positions, trade large total volumes in small individual trade sizes, and may or may not be part of FINRA. PTFs play a major role…

Firms that buy government securities directly from a government when they are issued and then resells them to other parties. Generally, primary dealers are obligated to offer liquidity in the government debt markets.

Lending from one individual to another and not involving a bank as the traditional lender.

See Peer-to-Peer Lending.

Electronic execution of trades offered in competition between different dealers and their clients.

Financial tests which are performed regularly (e.g., every 3 months) and can include tests such as maintaining a minimum net worth, debt/EBITDA not to exceed a certain amount, capping capital expenditures, and requiring minimum interest coverage.

See Lead Market Maker.

An order to buy or sell a security at a specified price or better.

The LMM provides defined market quotes for listed Exchange Traded Products on the NYSE Arca exchange. LMMs must maintain continuous, two-sided quotes for each security in which the firm is registered as set forth by the parameters in NYSE Arca Rule 7.23. LMM must meet minimum performance requirements which include…

Delays that can be incurred in the processing of network data. Low latency network connections generally experience small delay times while high latency connections generally suffer from long delays.

Covenants that are tested for specific events such as incurring additional indebtedness, paying dividends and acquiring new businesses