Acronyms to Know

Acronym Soup!

Years ago I became very frustrated when borrowers/sellers/funders would use acronyms that I didn't know. Some people throw out these acronyms to make themselves appear to "masters" of the transaction type. For your benefit, I have compiled a list that all intermediaries should know. I hope this helps an allows you to better understand and work on competent and professional manner without the embarrassment of having to ask what the last three acronyms meant. Here is another resource for acronyms if you don't find them here, you can search for them here: http://www.acronymfinder.com
Acronyms to know:
CIS- Client Information Sheet
POF- Proof of funds
LOI- Letter of Intent
SPA- Sale and Purchase agreement
PPP- Private Placement Platform
NDA- Non Disclosure agreement
VOD- Verification of deposit
SLS- Senior Life Settlement
L2L- ledger to ledger, bank to bank parallel funds
SBLC- Standby Letter of Credit (domestic)
DPLC- Direct Pay Letter of Credit (direct pay letter of credit)
BG- Bank Guarantee (Same thing as an SBLC, but European)
MTN- Medium Term Note
T-STRIP- Treasury Strip
MOU- Memorandum of Understanding
CLC- Conditional Letter of Commitment
JP54- Jet Fuel
D2- Diesel
IMFPA- Irrevocable Master Fee Protection Agreement
SFA- Sub Fee Agreement

GOLD &; DIAMOND TRANSACTIONS:

TTM- table top meeting
BCL- Bank Comfort Letter
R&E- Rolls and Extensions (the buyer can extend his contract to continue buying gold on a regular schedule)
LBMA London Bullion Market Association
Manifest- A description/list of the stones/gold and the price
Spot buy- transaction is paid for in cash, usually bank to bank at the time the goods are delivered.
RWA- Ready, Willing and Able
SCO- Soft Corporate Offer , an offering made by the seller of gold, gems, etc.
FCO- Full Corporate Offer- This is what a seller is willing to sell at and the terms of the sale
Kimberly Report- a report stating the diamonds are not “conflict diamonds” www.kimberleyprocess.com
Educate yourself on diamonds: www.ajediam.com/Sizes-of-Diamonds.html

GOLD SPECIFIC:

GLD gold is:
• Generally12.5kg bars, possibly other forms, (e.g., 1 Kg bars or other forms) 999.5+ Au, with London Metal Exchange (LME) recognized hallmark, and proper provenance, that is,
• Presently held in custody with full responsibility by a London Metal Exchange accepted depository, who certifies clean, clear title, and ships the Au under bond to the buyer’s LME accepted depository at seller’s cost.

If the gold does not meet criteria of GLD gold, it is non-GLD gold or AU
PROOFING UP YOUR BUYERS:
MT799- This is a simple text message sent bank to bank to verify funds
MT760- is a blocked funds instrument
Brinks Account or Malca-Amit account (this is the best)
VOD- Verification of deposit
POP- Proof of product
B2B- Bank to Bank


SHIPPING/DELIVERY:

FOB- Free On Board- Without charge to the purchaser for delivery on board or into a carrier at a specified point or location. (This can be tricky. i.e. FOB Houston means free freight to Houston and the product is probably located in Houston…if it’s going elsewhere, the buyer will have to pay for the shipment
CIF- cost, insurance, and freight

BONDS AND OTHER FINANCIAL INSTRUMENTS:

CUSIP Committee on Uniform Security Identification Procedures and the 9-character alphanumeric security identifiers
ISIN- International Securities Identification Number
DTC- Depository Trust Company
Euroclear- The world's largest settlement system for international and domestic bond and equity transactions. Euroclear provides a variety of financial services, including securities lending, settlement, and clearing.
Bluescreen- A screen shot of the traders window


MINES:

43-101- This is a Canadian geological/assay report on an in-ground asset. It is unique to Canada. i.e. The US has attorneys, the UK has barristers.