Glossary

The €STR reflects the wholesale euro unsecured overnight borrowing costs of banks located in th...

AAD is a mathematical technique used to significantly speed up the calculation of sensitivities...

An ABCP is a short-term investment vehicle with a maturity typically ranging from 90 to 270 days. It...

ABS are securities derived from a pool of underlying assets. To create asset-backed securities, fina...

Average Daily Delivery Value (ADDV) is a measure used in financial markets to calculate the average ...

ADR are share certificates and deposit certificates issues, traded and denominated in USD by US cust...

Average daily trading volume (ADTV) is the average number of shares traded within a day in a given s...

Average daily volume (ADV) is the average number of shares traded within a day in a given stock. Dai...

An AIF is a type of collective investment where funds are raised from a number of investors with a v...

A regulatory approach under Basel II and Basel III that allows banks to develop their own internal c...

It is a supervisory group that coordinates the management of assets and liabilities and provides imp...

It is a way of managing the financial risks that arise from the mismatch between the assets and liab...

AMC are structured products that offer active portfolio management where the underlying assets are s...

The AMF is the securities commission in France. The AMF is an independent public body that is respon...

AML refers to legally recognized rules, national and international, that are designed to thwart hidi...

AMMs are a type of decentralized exchange that use algorithmic mechanisms to facilitate the tra...

An AMRF if an Irish Fund similar to an ARF (Approved Retirement Fund). However, in the case of an AM...

An AON is an order type that must be executed in its entirety, or not executed at all. 

The API reports inventory levels of US crude oil inventories.

APT is an asset pricing model which expresses expected returns of a financial asset as a linear func...

An ARF is an Irish Fund allowing for tax-free growth of investments for pensions. 

Generally speaking, these strategies seek absolute returns that are not highly correlated to traditi...

The ARRC is a group established by the Federal Reserve Board and the New York Fed. Its members inclu...

Alternative risk transfer is the use of alternative techniques to achieve the same hedging and trans...

Agency Securities Lending (ASL) is a portfolio management tool that institutional clients can use to...

ASR products allow an issuer to accelerate the purchase of its shares by entering into a forward on ...

An asset swap is a synthetic position that combines a fixed rate bond with a fixed-to-floating inter...

The Australian Securities Exchange (ASX) is the primary stock exchange in Australia. It provides a m...

It refers to a type of contingent convertible bond (CoCo bond) that banks issue to strengthen their ...

At-the-money is a term used to describe an option with a strike price identical or almost identical ...

At-the-money forward is a term used to describe an option with a strike price identical or almost id...

AUM is the total market value of the investments managed by a person or entity on behalf of investor...

AVA refers to the adjustments applied to fair value measurements under the Prudential Valuation fram...

B&H is an investment strategy that involves buying stock regardless of where they are in the cyc...

It refers to the normal daily operations of a company or organization, without any significant chang...

A barrel of oil is a standard unit of measurement in the oil industry. It is used to quantify crude ...

The BEL 20 is the benchmark stock market index of Euronext Brussels. It tracks the performance of 20...

The Bank for International Settlements is an international financial institution which is owned by m...

BLOC certificate is another name given by UBS for a discount certificate. When purchasing a BLOC, th...

The back office is the portion of a company made up of administration and support personnel who are ...

The BoE is the central bank of England. 

The BoJ is the central bank of Japan.

It is the method by which countries measure all of the international monetary transactions within a ...

BRCs are very popular yield enhancement products that are suited for investors who are anticipating ...

5 countries grouped together because of their similar stages of economic development, although their...

The acronym BRL stands for Brazilian Real, which is the official currency of Brazil. It is abbreviat...

The BSE SENSEX is a free-float market-weighted stock market index of 30 well-established and financi...

BTCA is a multi-asset, transaction cost analysis tool that combines your trades with the extraordina...

BTPs are medium-term to long-term Italian government bonds with maturities ranging from 3 to 30 year...

This term is commonly used in fixed-income markets to describe a process where the holder of a portf...

The CAC 40 is a benchmark French stock market index. The index represents a capitalization-weighted ...

CAD stands for Canadian Dollar, which is the official currency of Canada. It is represented by the s...

The Calculation Agent Fee reduces the redemption amount subject to the holding period and has negati...

CAGR represents the mean annual growth rate of an investment or financial metric over a specified pe...

The CAPM is an idealized portrayal of how financial markets price securities and thereby determine e...

The capital adequacy ratio measures a bank's financial strength by using its capital and assets. It ...

CBBC are structured products.  They are leveraged investments that track the performance of the...

The Comprehensive Capital Analysis and Review is a stress-test regime for large US banks. It aims to...

CCBs are convertible bonds issued in China, allowing investors to convert bonds into equity at speci...

CCBs are a type of hybrid debt instrument that automatically converts into equity when a specific tr...

​The Consumer Composite Investments (CCI) framework is a new regulatory regime introduced by the U...

A Central Counterparty Clearing House (CCP) interposes between counterparties to contracts traded, b...

CCR is the risk that the counterparty to a transaction could default before the final settlement of ...

Clearing Corporations (CCs) are financial institutions responsible for ensuring the smooth and effic...

CCS are an OTC derivative in a form of an agreement between two parties to exchange interest payment...

A certificate of deposit is a type of savings account that pays a fixed interest rate on money held ...

Customer due diligence is the act of performing background checks and other screening on the custome...

A CDO is a complex structured finance product that is backed by a pool of loans and other assets and...

A range accrual note is a structured product where the coupon is linked to the performance of a refe...

A CDS is a financial derivative that allows an investor to swap or offset their credit risk with tha...

CEEMEA is a geographical grouping used by global corporations and financial institutions to describe...

CEM (Current Exposure Method) is a regulatory approach used to calculate counterparty credit risk ex...

CET-1 is a component of a bank's core capital, which consists primarily of common shares and retaine...

Centralized exchange refers to a digital platform that facilitates the trading, buying, and sel...

The CFA program is the professional qualification administered and awarded by the CFA Institute, bas...

A CFD is a derivative financial product that allows investors to take a long or a short position in ...

CFTC regulates the U.S. derivatives markets. This includes the commodity futures, options, and swaps...

The CGMY model is a stochastic process used in financial mathematics for modeling asset price dynami...

CGT is a tax on the profit realized from the sale of non-inventory assets, such as stocks, bonds, pr...

In probability theory and statistics, the characteristic function of any real-valued random variable...

The Swiss franc is the currency and legal tender of Switzerland and Liechtenstein.

A CLN is a type of structured financial product that combines a credit default swap (CDS) with a not...

A CLO is a single security backed by a pool of debt. The process of pooling assets into a marketable...

A Central Limit Order Book (CLOB) is a type of electronic trading mechanism where all buy and sell o...

The CLS (Continuous Linked Settlement) system is a global payment system designed to eliminate settl...

CMBS are fixed-income investments backed by mortgages on commercial properties rather than residenti...

The CME is a global derivatives marketplace based in Chicago. CME is part of the CME Group and cov...

A CMO refers to a type of mortgage-backed security that contains a pool of mortgages bundled togethe...

A constant maturity swap (CMS) is a variation of the regular interest rate swap in which the floatin...

The Chinese Yuan is the official currency of China. It is one of the world's most traded currencies ...

ColVa is another generic term that is often used to reference the difference in remuneration of coll...

It is a separate segment of structured products aiming to minimize the issuer risk. The issuer of CO...

Commercial paper consists of short-term notes issued primarily by corporations. Maturities range up ...

The CPI measures changes in the price level of consumer goods and services purchased by households.&...

Also called principal-protected notes (PPNs),  there are structured products that guarantee the...

CPPI is a trading strategy that allows an investor to maintain an exposure to the upside potential o...

CPPT is a trading strategy that allows an investor to maintain an exposure to the upside potential o...

The CQF is a professional qualification designed for individuals working in quantitative finance, fi...

The capital-to-risk weighted assets ratio measures a bank's financial strength by using its capital ...

The CRD is a a piece of EU legislation that sets out rules for the prudential regulation of authoris...

CRM is a set of integrated, data-driven software solutions that help manage, track, and store inform...

A CSA is a document that defines the terms for the provision of collateral by the parties in derivat...

CSRD entered into force in 2023 to modernise and strengthen the rules concerning the social and envi...

A CTA is a US regulatory term that refers to a wide range of investment companies and hedge funds wh...

CTB refers to initiatives or projects aimed at transforming a bank's operations, technology, or proc...

CtD refers to the cheapest security delivered in a futures contracts to a long position to satisfy t...

CTIs are crypto index funds designed to implement advanced diversification and investment strategies...

A CUSIP number identifies most securities, including: stocks of all registered US and Canadian compa...

CVA is the process through which counterparty credit is valued, priced and hedged. We can no longer ...

Also called expected shortfall (ES), CVaR is the average of all losses which are greater or equal th...

CvC is a typical correlation trading strategy in which an investor gets exposure to the average corr...

Delta one products are financial derivatives that have no optionality and as such have a delta of on...

The DAX is a stock market index consisting of the 40 major German blue chip companies trading on the...

DCA involves investing the same amount of money in a target security at regular intervals over a cer...

DCM is a department that acts as an intermediary between issuers of public or private debt and marke...

A DEX is a peer-to-peer marketplace where users can trade cryptocurrencies in a non-custodial manner...

The Dow Jones Industrial Average, Dow Jones, or simply the Dow, is a stock market index of 30 promin...

A DNT is a type of exotic option that gives its holder a specified payout only if the underlying ass...

A DRAN (Daily Range Accrual Note) is a product that accrues interest based on whether the underlying...

It is a centralised clearinghouse for various exchanges and equity platforms. In other words, it is ...

It corresponds to the numbers of days before the expiry of a dated financial contract (futures, opti...

DTS is the market standard method for measuring the credit volatility of a corporate bond. It i...

DV01 measures the interest rate risk of bond or portfolio of bonds by estimating the price change in...

This is the adjustment made to the price of a derivative to account for the credit risk of the insti...

DXY stands for the U.S. Dollar Index, a measure of the value of the U.S. dollar relative to a basket...

E2E means from its starting point to its end.

EAD is an estimate of what the credit exposure would be at the time a customer defaults sometime in ...

An external asset manager is a wealth manager which works independently from banks. Wealth managers ...

The EU regulatory agency responsible for overseeing the banking sector and ensuring financial stabil...

The ECB is the joint currency authority of the member states of the European Monetary Union (EMU) an...

ECL is an estimate of the amount of credit losses that a financial institution expects to incur over...

The ECM department acts as an intermediary between market investors and the issuers of equity, or qu...

An EDS is a derivative contract between two parties - a protection buyer and a protection seller - w...

It refers to the price at which exchange-traded derivatives contracts are settled. Stock exchanges u...

This is the expected (average) credit exposure on a future target date conditional on positive marke...

It is a private agreement between two parties to swap a futures contract for the actual underlying a...

It is a temporary fund to provide funding to struggling European economies, having bailed out Greece...

EGBs means euro-denominated sovereign bonds issued by European governments.

The EIOPA is a EU financial regulatory agency. It is one of the 3 European Supervisory Authorities f...

ELA is a last resort for providing liquidity to a distressed credit providing institution.

ELNs are structured financial products that combine a fixed-income instrument, such as a bond, with ...

An equity-linked security is a debt instrument with variable payments linked to an equity market ben...

EMEA is a geographical grouping and an acronym widely used by global corporations to define regional...

The EMIR is an EU regulation aimed at reducing systemic counterparty and operational risk and thereb...

EMMI (European Money Market Institute) is an organization that administers key financial benchmarks,...

A euro medium-term note is a medium-term, flexible debt instrument that is traded and issued outside...

The EMU is an agreement in which the European Union’s member states have agreed to converge th...

An eOMR uses an algorithm to determine the amount of stock purchased each day. The algorithm is desi...

EONIA was until the end of 2021 the 1-day interbank interest rate for the Euro zone. It is an effect...

EPE is the weighted average of potential future credit exposures on a given date, considering the av...

It is a standardised file that contains all necessary information so that insurers can create KID PR...

EQD are financial instruments whose value is derived from price movements of the underlying asset, w...

The Equity Risk Premium (ERP) is the extra return that investors expect to earn from investing in st...

Also called conditional value-at-risk (CVaR), expected shortfall is the average of all losses which ...

The ESCB is composed of the European Central Bank and the national central banks of all the states i...

ESG is a set of aspects, including environmental issues, social issues and corporate governance that...

ESM is an organisation created to provide help for European countries experiencing financial difficu...

The ESMA is an independent EU authority whose purpose is to improve investor protection and promote ...

An ESOP is an employee benefit plan that enables employees to own part of the company they work for ...

ESTR (Euro Short-Term Rate) is the overnight interest rate benchmark for the euro area, published by...

ETCs are bonds which are comparable to certificates and are linked to the performance of one or more...

ETDs are standardized derivative contracts such as futures and options contracts that are trans...

An ETF is a fund listed on-exchange that invests in a basket of assets – most commonly equitie...

ETNs are types of unsecured debt securities that track an underlying index of securities and trade o...

ETPs are instruments that track underlying security, index, or financial products. ETPs trade on exc...

ETS are standardized derivatives that can be easily purchased and traded thanks to their high liquid...

It describes the interest rate at which euro interbank term deposits are offered. EURIBOR is determi...

The EUSIPA is the European umbrella association for the certificate sector. Its role is to promote t...

EVE is the net present value of a bank's balance sheet's cash flows. It measures the long-term impac...

It refers to the full chain of processes from the back-office to the front-office. 

The FCA regulates the financial services industry in the UK. Its role includes protecting consumers,...

The FCS Desk (Flow & Corporate Solutions Desk) is typically a part of an investment bank’s...

The FED is the central banking system of the United States. 

FFR is the interest rate at which depository institutions lend reserve balances to other banks overn...

The FFT is a mathematical technique that efficiently computes the discrete Fourier transform and has...

FIA is a type of annuity contract that provides a guaranteed minimum return while offering additiona...

FICC is the name of a team/department that transact in a variety of assets, including interest rate ...

A semi-customized, exchange-traded put or call option issued by a clearing house. Customization is l...

The front office represents the customer-facing division of a firm. For example, customer service, s...

An FOK is an order type that must be executed immediately in its entirety. Otherwise order is cancel...

The FOMC is a branch of the FED. It is responsible for administering monetary policy decisions in th...

The Bank of England’s Financial Policy Committee (FPC) identifies, monitors and  takes ac...

An FRA is an agreement between two parties that determines a future rate of interest with a single i...

The FRM designation is an international professional certification for risk management professionals...

FRNs are fixed income securities that pay a coupon determined by a reference rate which resets perio...

The FRTB is a comprehensive suite of capital rules developed by the Basel Committee on Banking Super...

The Financial Stability Board is an international body that monitors and makes recommendations about...

The FSCS is the UK's statutory compensation scheme for customers of UK authorised financial services...

The FSMA strives to ensure the honest and equitable treatment of financial consumers and the in...

A first-to-default swap is an instrument that pays a predetermined amount when (and if) th...

Failure to Deliver refers to a situation where one party in a trading contract doesn't deliver on th...

The Fund Transfer Pricing measures the contribution by each source of funding to the overall profita...

A share index of the stocks of the 100 companies listed on the London Stock Exchange with the highes...

It is the major stock index in Italy. It consists of the 40 most traded stocks on the exchange.

An FVA is an adjustment to the value of a derivative or a derivatives portfolio that is designed to ...

FX is the global marketplace for the trading of one nation's currency for another. The forex market...

G-SIBs are a group of financial institutions with such significant economic weight that their failur...

The G10 currencies are ten of the most heavily traded currencies in the world. G10 currencies : USD,...

GARP (Global Association of Risk Professionals) is a leading organization that provides education an...

GBP is the official currency of the United Kingdom. It is one of the most widely traded currencies i...

GDRs are global certificates for securities. They serve to simplify the custody and management of se...

A GFD is a type of order that will remain active until executed (in part of full) or until the end o...

A GIC is a secure investment that guarantees 100% of your principal and interest when held to maturi...

The GIPS are used by investment managers for creating performance presentations that ensure a fair r...

It is UBS name of a Reverse Convertible. 

GSEs are financial institutions created by the U.S. Congress to: - Support specific segments of the...

A stress test performed at a group level to assess the financial resilience of an organization under...

A GTC order is an order to buy or sell a security at a particular price that is active until filled ...

A GTD order is an order to buy or sell a security at a particular price that will remain in place un...

A hedge fund is an alternative investment that pools assets from multiple investors. HFs are illiqui...

HICP is an indicator of inflation and price stability for the ECB. It is a consumer price index whic...

The Hong Kong Dollar is the official currency of Hong Kong.  It is overseen by the Hong Kong M...

It is the operator of the Hong Kong Stock Exchange (SEHK) and other financial markets in Hong Kong. ...

It is a term used in the financial services industry for people who maintain liquid asset at or abov...

HPL is the daily P&L produced by revaluing the positions held at the end of the previous day usi...

The high-quality liquid assets include only those with a high potential to be converted easily and q...

HRP is an advanced portfolio optimization technique that aims to create more stable and diversified ...

HSCEI is a benchmark index that tracks the performance of major Chinese companies listed on the Hong...

HSI is the benchmark stock market index of the Hong Kong Stock Exchange (SEHK), tracking the perform...

The HVaR uses historical data and scenarios to measure VaR.   The benefits of this approach ar...

High-yield bonds are debt securities that pay higher interest rates because they are issued by corpo...

The IAIS is a voluntary membership organisation of insurance supervisors and regulators from more th...

An Investment Bank (IB) is a financial institution that helps companies, institutions, and governmen...

The ICE is an American exchange that trades futures and options.

An ICO is the cryptocurrency industry's equivalent of an initial public offering (IPO). A company se...

An inter-dealer broker (IDB) is a specialized financial intermediary who facilitates transactions be...

IDRs are depositary receipts (negotiable certificates) which represent ownership of a share in a com...

The IEA works with countries around the world to shape energy policies for a secure and sustainable ...

An IFA is a professional who offers independent advice on financial products and matters.

International Financial Reporting Standards (IFRS) are a set of accounting rules designed to ensure ...

The IFTA offers courses for certifications in technical analysis for successful traders.

Investment grade is a measure of a company's credit. Higher rated companies are considered investmen...

Also called linkers, ILBs are fixed income securities whose principal and coupons are linked to infl...

ILS are financial instruments usually sponsored by insurers or reinsurers to cover extreme natural e...

The Israeli Shekel (ILS), officially known as the New Israeli Shekel (NIS), is the currency of Israe...

In derivatives markets, initial margin is one of two types of collateral required to protect a party...

The internal models approach is one of two methods banks can use to calculate market risk capital re...

The IMC is recognized by the fund management industry as the entry-level qualification of choice for...

The IMF is an organisation which represents 187 nations. Its duties include fostering global monetar...

An IOC is an order to buy or sell a security that will execute all or part immediately and then canc...

In an IPO, a privately owned company lists its shares on a stock exchange, making them available for...

Independent Price Verification is an increasingly important process requirement to support fina...

An IRA is an account set up at a financial institution that allows an individual to save for retirem...

The IRB approach is a methodology used by banks to calculate regulatory capital requirements for cre...

The incremental risk charge (IRC) is a regulatory requirement from the Basel Committee in response t...

IRD are a derivative based on a benchmark interest rate or group of interest rates. Traders and borr...

The IRR is the annual rate of growth that an investment is expected to generate. IRR is calculated u...

IRRBB refers to the risk that a bank’s capital and earnings will be negatively affected by cha...

An interest rate swap (IRS) is a type of a derivative contract through which two counterparties agre...

ISA is a class of retail investment arrangement available to residents of the United Kingdom. The a...

A client in an ISA has no co-mingling with any other client or the house, and is subject to porting ...

The ISDA is a trade organization of participants in the market for OTC derivatives. It fosters safe ...

An ISIN uniquely identifies a security. Securities for which ISINs are issued include bonds, commerc...

The ISM rates the relative level of business conditions including employment, production, new orders...

ISPL is a best practice library for the management of Information Technology related acquisition pro...

Stress tests conducted internally by a financial institution to assess risk exposure under extreme c...

ITM refers to the moneyness of an option. Moneyness is a concept referring to the position of the un...

Implied Volatility is computed from options prices, using Black-Scholes formula. Black-Scholes formu...

JGBs are medium-term to long-term bonds issued by the government of Japan. Interest is paid every si...

It is a survey program that produces data on job openings, hires and separations in the U.S.

The JSCC was established in 2002 to provide clearing services for the country's five equities exchan...

The KIID is a two-page ‘fact-sheet’ style document which includes the critical informati...

KIKO is a short-term structured product that can be applied to any asset class. As an equity-linked ...

A KPI is a quantifiable measure of performance over time for a specific objective.

Key risk indicators are used by financial firms to measure their exposure to a given risk at a ...

The Keller-Tang (KT) model is a stochastic volatility model used in derivatives pricing and volatili...

Bonds issued with 3-, 5-, 10-, 20-, 30- and 50-year maturities with every-six-month interest coupons...

This is the adjustment made to the price of a derivative to account for the cost of the capital that...

KYC are a set of standards used in the investment services industry to verify customers and their ri...

The London Bullion Market Association (LBMA) is the international trade association that oversees th...

LCH is a central counterparty clearinghouse (CCP) that provides clearing and risk management service...

The LCR requires banks to hold enough high-quality liquid assets (HQLA)  – such as short-...

LDI is an investment strategy focused on gaining enough assets to cover all current and future liabi...

A LEPO is simply a conventional call option with a strike price close to zero. Hence, the LEPO is in...

LGD is a measure of the loss that a lender incurs when a borrower defaults on a loan, expressed as a...

The LIBOR is a set of interest rates calculated from submissions by large global banks. LIBOR rates ...

LIS are customized strategies aimed at managing liquidity while maximizing returns, often used by in...

A limited partner is an investor who contributes capital to a business partnership in exchange ...

Liquidity Providers are entities or individuals who supply buy and sell orders to the financial mark...

LSM is a numerical method used for valuing American-style derivatives, particularly when there are c...

LSM refers to the processes and strategies that financial institutions use to ensure they have suffi...

LSV is a model used in quantitative finance to describe the behavior of asset prices. It combines fe...

LTP refers to the price at which a security was last bought and sold on an exchange. It serves as a ...

LTRO was used by the ECB as an alternative to QE. It enables European banks to borrow as much money ...

The LTV corresponds to the size of a secured loan relatively to its collateral value. 

Multi barrier reverse convertible are yield enhancing products. The investor gives up the capital pr...

MBS are fixed-income investments that are backed by pools of mortgages. These securities represent c...

Multi-Dealer platforms are a great example of how technology continues to improve markets. These ele...

The MFS department includes repo, securities lending, trip arty collateral management and financing ...

MiFID is a European regulation that increases the transparency across the EU's financial m...

Mixed-Integer Linear Programming (MILP) is a mathematical optimization approach that involves both i...

MLE is a statistical method used to estimate the parameters of a model by maximizing a likelihood fu...

Market maker refers to a firm or an individual that engages in two-sided markets of a given security...

A MMF is a kind of mutual fund that invests in highly liquid, near-term instruments. These instrumen...

A Multinational Corporation is a company that operates in multiple countries, with headquarters in o...

The middle office is the department in a financial services company, investment bank or hedge fund t...

A market order executed as close to the end of the market day as possible.

A buy or sell order in which the broker is to execute the order at the market’s opening.

MOVE Index is a crucial gauge of interest rate volatility in the US Treasury market.  The inde...

The MPC is responsible for administering the UK monetary policy. 

Margin period of risk, also known as the "liquidation period”, stands for the time period from...

A Multi Reverse Convertible Note is a reverse convertible on several underlying assets, typically on...

A Multi Reverse Convertible Note is a reverse convertible on several underlying assets, typically on...

MROs are the Eurosystem’s main tool for providing liquidity and steering interest rates in the...

The Minimum Transfer Amount (MTA) is the smallest collateral amount that must be transferred between...

A multilateral trading facility is a type of trading venue where financial instruments are exchanged...

Marked-to-Market is an accounting practice that involves adjusting the value of an asset to reflect ...

A medium-term note is a note that usually matures in five to 10 years.

MVA allows for the funding costs of the initial margin posted for a derivatives trade. This can appl...

Marginal VaR measures the change in the total portfolio VaR following an increase of investment of 1...

Market Wide Position Limits (MWPL) is a regulatory mechanism used in derivatives markets, particular...

The Nasdaq-100 is a stock market index made up of equity securities issued by 100 of the largest non...

A fund’s or exchange-traded fund’s (ETF) per-share value. It is calculated by dividing t...

NBFCs are entities that provide similar services to a bank but do not hold a banking license. 

NBFIs are entities that provide similar services to a bank but do not hold a banking license.

An NDF is a cash-settled short term forward contract on a thinly traded or not fully convertible for...

A NDO is a financial derivative where, if exercised, settlement is not made through the actual deliv...

NFP is an important US statistic compiled by the Bureau of Labour statistics, which shows monthly ne...

NII refers to the difference between the revenue generated from a bank's interest-bearing assets (li...

An interest rate structured note that achieves a higher yield conditionally of the swap curve (expre...

It is a premium over the existing bonds for a given company that acts as an incentive for investors ...

NLP is a branch of artificial intelligence that enables computers to comprehend, generate, and manip...

NMRF refers to a risk factor that cannot be reliably modeled due to insufficient data availability, ...

The NSFR is expressed as a ratio that must equal or exceed 100%. The ratio relates the bank's availa...

The New York Mercantile Exchange is a commodity futures exchange owned and operated by CME Group of ...

OAS is a measure used to evaluate the yield spread of a bond that has embedded options, such as call...

OATs are medium-term to long-term French government bonds. 

Option-Based Portfolio Insurance (OBPI) is a portfolio management strategy that uses options to prov...

The OCC issues substantially all CBOE options contracts. The OCC is recognized as the vital mechanis...

OCO is a pair of orders stipulating that if one order is executed, then the other order is automatic...

The underlying dynamic basket works as a CPPI, the difference being that the basket is never fully i...

OECD provides research, statistics and recommendation to its members. 

OEICs are professionally-managed funds where investors' money is pooled together to gain access to a...

Open Interest (OI) is a term used in options and futures trading. It refers to the total number of o...

An overnight index swap is an interest rate swap in which a fixed rate is exchanged for an overnight...

OLOs basically are Belgian government bonds. They are not really much different than other governmen...

The basic role of market makers in the options exchanges is to ensure that the markets run smoo...

OMOs are the buying and selling of government bonds on the open market by a central bank. It is the ...

It is just a state machine. You feed it your current order state and your intended order state. It w...

OMT denotes the ECB’s purchases in secondary sovereign bond markets and under certain conditio...

Object-oriented programming (OOP) is a computer programming model that organizes software design aro...

OPEC is an international organisation of more than a dozen nations located in the Middle East, Afric...

At the heart of the prudential SII directive, the ORSA is defined as a set of processes constituting...

The OSE is the leading Derivatives Exchange in Japan.

The OTC market is where securities trade via a broker-dealer network instead of on a centralized exc...

OTM refers to the moneyness of an option. Moneyness is a concept referring to the position of the un...

P&C insurance is a general term that describes various forms of insurance that can help protect ...

It is basically the money you earn or lose everyday on a portfolio.

The People’s Bank of China (PBOC) is China’s central bank, responsible for monetary poli...

PCA is a statistical method used to reduce the dimensionality of data while retaining most of its va...

Personal Consumption Expenditures (PCE) is a key economic indicator that measures consumer spending ...

Currency overlay is a strategy international investors and fund managers use to farm out currency ri...

Put-call parity is a fundamental principle in options pricing that defines the relationship between ...

The put-call symmetry relates the prices of puts and calls at strikes on opposite sides of the forwa...

The PD is the likelihood of a default over a particular time horizon. It provides an estimate of the...

A PDE is a mathematical equation that involves multiple independent variables, an unknown function t...

A PDF is a function over the sample space S of a continuous random variable X from which the probabi...

Is is the UBS name given to a Tracker Certificates.PERLES products aim to deliver exposure to the pe...

Potential future exposure is a measure of risk in relation to default by a counter-party to a financ...

PFOF is a practice in which a broker receives compensation from a third party, typically a market ma...

PIIGS are a group of 5 countries that were the most affected by the European Debt crisis.

A product information sheet comprising a maximum of three pages is required to be provided to custom...

The profit-and-loss attribution test is one of two regulator-set tests that a bank's trading desk mu...

A PM is a professional responsible for making investment decisions and carrying out investment activ...

Precious metals are metals that are rare and have a high economic value due to various factors, incl...

PMI measures the activity level of purchasing managers in the manufacturing sector. he PMI is based ...

Private Placement (PP) refers to the sale of securities to a relatively small number of select inves...

PPI measures the average change in prices received by domestic producers for their output.

A PPN is a fixed-income security that guarantees a minimum return equal to the investor's initial in...

The Bank of England prudentially regulates and supervises financial services firms through the Prude...

Power Reverse Dual Currency pays investors some foreign interest rate in the domestic currency. A PR...

Priips is a EU term for packaged retail investment products, such as insurance policies, structured ...

PRNs provide a return that’s tied to the performance of a specified reference asset. They offe...

PWA (Private Wealth Advisors) refers to financial professionals or firms that provide personalized w...

QE is the process by which central banks balance sheets are expanded in order to allow them to purch...

The Qualified Foreign Institutional Investor (QFII) is a program that allows specified licensed inte...

QIS is an alternative way of investing that builds rules-based Investment Solutions encapsulated in ...

A liquidity provider is a financial institution that ensures that a specific market remains liquid, ...

Every quarter, the US Treasury Department releases its QRA, which outlines the government's borrowin...

It represents the discipline which deals with the ability of an organization to quantify and manage ...

Structured product where the coupon is linked to the performance of a reference index, for example 6...

A revolving credit facility is a line of credit that is arranged between a bank and a business. It c...

Reverse Convertibles Notes are among the most popular yield enhancement products in Switzerland and ...

Reverse Convertibles are among the most popular yield enhancement products in Switzerland and are su...

A note which pays a coupon in a non-base currency (typically the currency of the issuer) and pays pr...

RDC refers to the amount of borrowing available to a company or individual under a revolving credit ...

REER (Real Effective Exchange Rate) is an important economic indicator used to measure a country&rsq...

REITs are companies that own or finance income-producing real estate across a range of property sect...

The bank's risk management model must include an appropriate set of risk factors, that are represent...

A RFQ is a financial term for certain way to ask a bank for a bid or an offer for a given financial ...

The risk-free rate is the theoretical rate of return on an investment with zero risk. As such, it is...

A RIA is a financial firm that advises clients on securities investments and may manage their invest...

RILA is a type of annuity that provides the potential for higher returns based on the performance of...

A Retail Investment Strategy (RIS) refers to a structured approach used by financial institutions, r...

The RIY shows what impact the total costs you pay will have on the investment return you might get.

RMBS are a type of mortgage-backed security backed by residential real estate mortgages.

Risk Management Solutions (RMS) is a leading provider of catastrophe risk modeling software and anal...

RMSE is a standard measure used to quantify the difference between values predicted by a model and t...

RNIF typically refers to risks that are not covered by the existing risk framework, often requiring ...

RNIM typically refers to risks that are not captured by the existing risk models, requiring addition...

A reverse repurchase agreement (RRP) is the act of buying securities temporarily with the intention ...

RTB refers to the activities and operations necessary to maintain the daily functions of a bank or f...

The RTPL is the daily trading desk-level P&L that is produced by the valuation engine of the tra...

Under EMIR (European Market Infrastructure Regulation), Regulatory Technical Standards (RTS) are det...

The ruble is the currency of the Russian Federation. 

RVX is a financial benchmark that measures the market's expectations of 30-day volatility in the Rus...

RWA is a bank's assets or off-balance-sheet exposures, weighted according to risk. This sort of asse...

Sales & Trading is the division of an investment bank that pitches clients on different trading ...

SAA is the process that determines the different asset class distribution within an investor’s...

The SABR is stochastic volatility model for forward prices commonly used in the modelling of interes...

In this context, SABRW most likely refers to the Stochastic Alpha, Beta, Rho, and Weight model (SABR...

The sensitivities-based approach is the standardised method to calculate risk capital under the Fund...

An SBLC is a financial guarantee issued by a bank to ensure that a buyer or borrower fulfills their ...

A Single-Dealer Platform is a technology platform used by financial institutions to provide trading ...

Special Drawing Rights is an international reserve asset created by the International Monetary ...

SDRs are new entities created by the Dodd-Frank Act in order to provide a central facility for swap ...

The SEC is the most senior authority that regulates the entire US securities market. 

SEFs are trading facilities that operate under the regulatory oversight of the CFTC. They were creat...

It is the main securities exchange in Hong Kong and operates as a part of Hong Kong Exchanges and Cl...

The Fed’s SEP sheds light on the central bank’s expectations for economic growth, inflat...

The SET team focuses on tailor-made equity financing, equity stake management and treasury share sol...

SFTs allow investors and firms to use assets, such as the shares or bonds they own, to secure fundin...

The Singapore Exchange is a leading Asian exchange that provides a platform for securities, derivati...

Solvency II is the prudential regime for insurance and reinsurance undertakings in the EU. 

It is a common methodology to help market participants calculate initial margin on non-cleared deriv...

A Systematic Investment Plan (SIP) is an investment strategy where an investor invests a fixed amoun...

SLAB is a collateralized loan.The lender gives cash or securities (the principal) to the borrower in...

SLAs are contracts between a service provider and a customer which specify the minimum level of serv...

The Supplementary Leverage Ratio (SLR) is a regulatory capital requirement for large U.S. banks, int...

A SMA is a portfolio of assets managed by a professional investment firm. SMAs are increasingly targ...

The SMCR is a UK regulatory framework introduced by the Financial Conduct Authority (FCA) and the Pr...

The SMI is Switzerland's blue-chip stock market index, which makes it the most followed in the count...

The Secured Overnight Financing Rate is a broad measure of the cost of borrowing cash overnight coll...

It’s essentially the Federal Reserve’s investment portfolio — the account through ...

SONIA is a reference rate published daily by the Bank of England that tracks the interest paid by ba...

SPIRE is a special purpose vehicle established for the purpose of issuing asset backed securities. ...

A SPV is a legal entity that allows multiple investors to pool their capital and make an investment ...

The S&P 500 is a stock market index tracking the stock performance of 500 of the largest compani...

SRI is an investment that is considered socially responsible due to the nature of the business the c...

SRI is a standardised risk indicator that takes into account both the volatility of a financial inst...

SRRI is a component of the Key Investor Information Document (KIID). It illustrates a fund’s r...

SRT refers to transactions designed to transfer a substantial portion of credit risk from a bank or ...

SSAs are bonds issued by institutions like the World Bank and other institutions whose activities in...

It is the aim of the SSPA to promote the reputation of Structured Products and, subsequently, also S...

The stress tests evaluate the financial resilience of large banks by estimating bank losses, revenue...

The idea of STRIPS is that the principal and each interest payment become separate securities that a...

STS are methods of defining trade goals, risk controls, and decision making to remove human emotion ...

Stress Testing & Tail Risk  is a risk management technique that assesses portfolio sensitiv...

Stressed Value at Risk (SVaR) is a financial risk measure that estimates potential losses in a portf...

A SWO (Swap Option or Swaption) is an option that provides the right but not the obligation to enter...

T2 replaced TARGET2 and is the real-time gross settlement system owned and operated by the Eurosyste...

Tactical asset allocation refers to an active management portfolio strategy that shifts asset alloca...

A TARF is a foreign exchange product that allows the holder, usually a corporate, to buy or sell a c...

A TARN is a type of structured financial product that is similar to a Target Accrual Redemption Forw...

It is the study of trade prices to determine whether past trades were arranged at favourable prices&...

Triparty collateral management services (TCMS) provided by triparty agents (TPAs) allow market parti...

Tracking error is a measure of how closely a portfolio follows the index against which it is benchma...

TED spread is the difference between interest rates on interbank loans and the interest rate on shor...

The total expense ratio is a measure of the total cost of a fund to an investor. Total costs may inc...

The TGA is the US government’s operating account that is maintained by Federal Reserve Banks a...

TIBOR is the daily reference rate derived from interest rates that banks charge to lend funds to oth...

It is a portfolio insurance strategy that plays an important role in the realm of investment managem...

TIPS are inflation-protected bonds that are issued by the US Treasury. Their face value is pegged to...

Total loss-absorbing capacity is an international standard, finalised by the Financial Stability Boa...

TONA is a key interest rate in Japan that serves as a benchmark for short-term interest rates. It is...

Also known as TARF, a TPF is a foreign exchange product that allows the holder, usually a corporate,...

TRFs are centrally cleared and exchange-listed alternatives to total return swaps (TRSs). They are a...

A total return swap is a swap agreement in which one party makes payments based on a set rate, ...

TRY is the official currency from Turkey. 

A term sheet is a non-binding agreement that shows the basic terms and conditions of an investment. ...

TTF is a virtual trading point for natural gas in the Netherlands. This trading point provides facil...

The Theoretical Value of an option is the premium calculated using a standard option pricing model, ...

In options trading, Time Value is the portion of an option's premium that exceeds its intrinsic valu...

The TVOG captures the time value of embedded options and guarantees built into an insurance product....

UCITS is a regulatory framework for mutual funds in the European Union. It governs how mutual funds ...

Individuals with ultra high net worth, who control a tremendous amount of global wealth. 

VaR is a statistical measure of the riskiness of financial entities or portfolios of assets. It is d...

Value for Money (VFM) in Structured Products means assessing whether a product offers a fair balance...

CBOE Volatility Index, VIX, is a popular measure of the stock market's expectation of volatility bas...

In derivatives markets, variation margin is a type of collateral required to protect parties to a co...

VNKY measures the market's expectations for near-term volatility in the Nikkei 225 Index, which is J...

A variable prepaid forward contract is a technique that stockholders use in market equity trans...

The volatility risk premium refers to the phenomenon that option-implied volatility tends to exceed ...

This concept shifts dynamically between risk-free and risky assets in order to generate a portfolio ...

VVIX is a volatility index that measures the expected volatility of the VIX itself, which is often r...

VWAP  is a statistic that shows the ratio of an asset's price to its total trade volume. It pro...

VXN is a financial index that measures the market's expectations of 30-day volatility in the Nasqad-...

Whole-business securitization (WBS) is a structured finance product where a company issues secured d...

From what I know, WIRP corresponds to a Bloomberg screen that takes information for all Fed funds fu...

WTI oil is another benchmark used by oil markets, representing oil produced in the U.S.

Wrong-way risk arises when the exposure to a counterparty increases together with the risk of the co...

XCCY are an OTC derivative in a form of an agreement between two parties to exchange interest paymen...

It calculates the annual return when cashflows occur at irregular intervals. It takes into account a...

XVA is a collective term that covers the different types of valuation adjustments relating to deriva...

A yield curve is a representation of the relationship between market remuneration rates and the rema...

Yield curve control involves targeting a longer-term interest rate by a central bank, then buying or...

Yield to call is the return that a bondholder will be paid if the bond is held until the call date, ...

The yield to maturity is the expected annual rate of return earned on a bond, assuming the debt secu...

Yield to worst is a measure that helps investors assess the minimum yield they can expect from a bon...

ZCBs are bonds which bear no regular interest payments. They are discounted upon issue that is issue...

A zero-coupon swap is an exchange of cash flows in which the stream of floating interest-rate paymen...

The ZEW is a German economic sentiment indicator that measures the expectations of German institutio...