Calculation Agent

Filed Under » ,
Dictionary Says

Definition of 'Calculation Agent'

An individual who calculates the value of a derivative or the amount owing from each party in a swap agreement.
Investopedia Says

Investopedia explains 'Calculation Agent'

In most cases, a calculation agent will be a professional market maker. If more than one calculation agent has been chosen, they are referred to as co-calculation agents and have a shared responsibility.

Related Definitions

  • Derivative

    A security whose price is dependent upon or derived from one or more underlying assets. The derivative itself is merely a contract between two or more parties. Its value is determined by ...
    Read More »
  • Market Maker

    A broker-dealer firm that accepts the risk of holding a certain number of shares of a particular security in order to facilitate trading in that security. Each market maker competes for ...
    Read More »
  • Swap

    Traditionally, the exchange of one security for another to change the maturity (bonds), quality of issues (stocks or bonds), or because investment objectives have changed. Recently, ...
    Read More »

Articles Of Interest

Partner Links