performance bond — A type of insurance purchased by a builder that protects both the bank and the owner by providing that the insurance company will be responsible for completing construction if the contractor fails to do so. American Banker Glossary A surety bond… … Financial and business terms
Performance bond — A performance bond is a surety bond issued by an insurance company or a bank to guarantee satisfactory completion of a project by a contractor. A job requiring a payment performance bond will usually require a bid bond, to bid the job. When the… … Wikipedia
performance bond call — 1 A request from a brokerage firm to a customer to bring performance bond deposits up to minimum levels. 2 A request by CME Clearing to a clearing firm to bring clearing performance bonds back to levels required by the Exchange Rules. Most… … Financial and business terms
SPAN® Performance Bond System — The Standard Portfolio Analysis of Risk ( SPAN) Performance Bond System). A program that determines portfolio performance bond requirements for futures, options, cash, and other instruments. SPAN is a portfolio based approach to risk performance… … Financial and business terms
maintenance margin (performance bond) — A sum, usually smaller than the initial performance bond, which must remain on deposit in the customer s account for any position. A drop in funds below this level requires a deposit back to initial margin levels. See performance bond call … Financial and business terms
maintenance performance bond — The minimum equity that must be maintained for each contract in a customer s account subsequent to deposit of the initial performance bond. If the equity drops below this level, a deposit must be made to bring the account back to the initial… … Financial and business terms
initial margin (initial performance bond) — The funds required when a futures position (or a short options on futures position) is opened. See performance bond … Financial and business terms
margin — the difference between the selling price and the purchase price of an item usually expressed as a percentage of the selling price. Compare mark up. Glossary of Business Terms Financial safeguards to ensure that clearing members (usually companies … Financial and business terms
initial performance bond — The minimum deposit a clearing firm must require from customers for each contract, when an account is new or when the account s equity falls below CME Clearing minimum maintenance requirements. The contract specifications indicate the amount of… … Financial and business terms
member performance bond — The minimum equity that must be maintained for each contract in a member s account subsequent to deposit of the initial margin. Also see MEMBER RATE. Chicago Mercantile Exchange Glossary … Financial and business terms
