derivative
early 15c. (adj.); mid-15c. (n.), from
M.Fr. dérivatif (15c.), from L.L. derivativus, from pp. stem of L. derivare
(see derive).
Mathematical sense is from 1670s. http://www.etymonline.com/index.php?term=derivative
A derivative instrument is a contract between two parties that
specifies conditions (especially the dates, resulting values of the underlying
variables, and notional amounts) under which payments are to be made between
the parties. Under US law and the laws
of most other developed countries, derivatives have special legal exemptions
that make them a particularly attractive legal form to extend credit. However, the strong creditor protections
afforded to derivatives counterparties, in combination with their complexity
and lack of transparency, can cause capital markets to underprice credit risk. This can contribute to credit booms, and
increase systemic risks. Indeed, the use
of derivatives to mask credit risk from third parties while protecting
derivative counterparties contributed to the financial crisis of 2008 in the
United States. Financial reforms
within the US since the financial crisis have served only to reinforce special
protections for derivatives, including greater access to government guarantees,
while minimizing disclosure to broader financial markets. One of the oldest derivatives is rice
futures, which have been traded on the Dojima Rice Exchange since the eighteenth
century. Derivatives are broadly
categorized by the relationship between the underlying asset and the derivative
(such as forward, option,
swap);
the type of underlying asset (such as equity
derivatives, foreign exchange derivatives, interest rate derivatives, commodity
derivatives, or credit derivatives); the market in which they
trade (such as exchange-traded or over-the-counter); and their pay-off
profile. http://en.wikipedia.org/wiki/Derivative_(finance)
The Chicago Mercantile Exchange (CME) (often called "the
Chicago Merc," or "the Merc") is an American
financial and commodity derivative exchange based in Chicago and
located at 20 S. Wacker Drive. The CME
was founded in 1898 as the Chicago Butter and Egg Board, an
agricultural commodities exchange. Originally,
the exchange was a non-profit organization. The Merc demutualized
in November 2000, went public in December 2002, and merged
with the Chicago Board of Trade in July 2007 to
become a designated contract market of the CME Group
Inc., which operates both markets. On
August 18, 2008, shareholders approved a merger with the New York Mercantile
Exchange (NYMEX) and COMEX. The Merc, CBOT, NYMEX and COMEX are now markets
owned by the CME
Group. Today, the Merc trades
several types of financial instruments: interest
rates, equities,
currencies,
and commodities.
It also offers trading in alternative
investments, such as weather and real estate derivatives, and has the largest options
and futures contracts open
interest (number of contracts outstanding) of any futures exchange in the
world. As a Designated Self-Regulatory
Organization (DSRO), the CME had primary regulatory-audit authority over firms
such as MF Global. CME also pioneered
the CME SPAN
software that is used around the world as the official performance bond
(margin) mechanism of 50 registered exchanges, clearing organizations, service
bureaus and regulatory agencies throughout the world. http://en.wikipedia.org/wiki/Derivative_(finance)
monish (MON-ish) verb tr: To warn; to admonish.
From Old French amonester
(to warn, to urge), from Latin monere (to warn). Ultimately from the Indo-European root men-
(to think) which is the source of mind, mnemonic, mosaic, music, mentor, money,
mandarin, and Sanskrit mantra.
Earliest documented use: before 1382.
suasion (SWAY-zhuhn) noun: The act of urging: persuasion. (Often used in the phrase 'moral suasion') From Latin suadere (to advise). Ultimately from the Indo-European root swad-
(sweet, pleasant), which also gave us sweet, suave, hedonism, persuade, and
Hindi swad (taste). Earliest documented
use: 1374.
versal (VUHR-suhl)
adjective: Universal;
whole.
Shortening of universal,
from Latin universum (universe).
Ultimately from the Indo-European root wer- (to turn or bend), also the
source of wring, weird, writhe, worth, revert, universe, verso, versicolor, and animadvert. Earliest documented use: 1590s, in Romeo & Juliet.
complice (KOM-plis) noun: An associate; accomplice.
Via French from Latin com-
(with) + plicare (to fold). Ultimately
from the Indo-European root plek- (to plait), which is also the source of
plait, pleat, pliant, ply, apply, deploy, display, exploit, replicate, and
perplex. Earliest documented use: 1475.
A.Word.A.Day with Anu Garg
Feedback to A.Word.A.Day
From: Liz
Juniper Subject:
Back-formations
Gen Y (and younger) are
fond of using the back-formation "verse" as in "Who is our team
versing this week?" (in sport) --
back-formation of "versus". It hurts my ears... but I suppose I have
to get used to it.
From: Monroe
Thomas Clewis Subject:
Way back
In the "Is there no
limit?" category, "back-formation" has its own back-formation,
"back-form" which brings to mind this nursery rhyme:
Big fleas have little
fleas, Upon their backs to bite 'em,
And little fleas have lesser fleas, And so, ad infinitum. (The Siphonaptera)
From: Jan
Manyfeathers Subject:
back-formationAnd little fleas have lesser fleas, And so, ad infinitum. (The Siphonaptera)
Our local radio station has just announced that parents must registrate their kids for summer sports camp by the end of the week. I bet a week does not go by that I don't hear someone saying they want to just conversate with so-and-so, and the other word that gets so much abuse around here, funeralize. "When they gonna funeralize him?" "He gone be funeralized Friday." We call it word morphing here.
By a 5-4 vote, the U.S. S.C. held the Affordable Care
Act's mandate requiring Americans to
carry health insurance or pay a penalty valid under Congress's constitutional
authority to levy taxes. The financial
penalty for failing to carry insurance possesses "the essential feature of
any tax," producing revenue for the government, Chief Justice Roberts
wrote. The ruling means that the law's
reordering of the $2.7 trillion health industry will move forward mostly as
planned, with implications affecting every hospital, doctor, health insurer and
drug maker in the nation. About 30
million more Americans are expected to gain coverage, although the Medicaid
change could lower that. Companies said
they were relieved to have a greater degree of certainty about what's in store,
and some welcomed the influx of new customers the insurance mandate will
provide. Others pointed to concerns,
including the complexity of the law and the remaining questions about Medicaid. http://online.wsj.com/article/SB10001424052702304898704577480371370927862.html
The Supreme
Court’s decision to uphold
the Affordable Care Act shifts the focus from whether sweeping changes to the health insurance market should take place to a
scramble to meet the law’s rapidly approaching deadlines. A number of largely Republican-led states
that gambled on delay now face the unsettling prospect that the federal
government could take over their responsibilities, particularly in setting up
the health insurance marketplaces known as exchanges, where people will be able
to choose among policies for their coverage.
Under the law, which the court upheld in its entirety by a 5-to-4 vote,
individuals must be able to buy insurance coverage through the new state
exchanges by Jan. 1, 2014. But a more
immediate deadline is less than six months away, on Jan. 1, 2013, when states
must demonstrate to the Department of Health and Human Services that the
exchanges will be operational the next year.
http://www.nytimes.com/2012/06/29/us/states-face-a-challenge-to-hit-laws-deadlines.html?_r=1&hp
Broccoli is
mentioned 12 times in the June 28 health care decision of the U.S.S.C. See all mentions at: http://blogs.wsj.com/law/2012/06/28/is-broccoli-overexposed/