20.07.2020

Collective Investment Institution Dictionary (Jargon)

This Jargon Dictionary of Collective Investment Institution is a section of a financial regulatory dictionary. The language of the financial regulatory field is complex and an entry barrier to understanding its regulation. This work is informative and not scientific in nature. It is only an approach that facilitates access to a complex subject. This same work and this particular section are available in Spanish.

Por Sanz González , María

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Concept	Definition
SHARES	Shares in companies and other securities equivalent to shares in companies, partnerships or other entities, and depositary receipts in respect of shares
REAL ASSET	An asset that has value due to its substance and properties and may provide returns, including infrastructure and other assets that give rise to economic or social benefit, such as education, counselling, research and development, and including commercial property or housing only where they are integral to, or an ancillary element of, a long-term investment project that contributes to the Union objective of smart, sustainable and inclusive growth
DEFINED BENEFIT PENSION FUND ASSETS	The assets of a defined pension fund or plan, as applicable, calculated after they have been reduced by the amount of obligations under the same fund or plan;
INTANGIBLE ASSETS	It has the same meaning as under the applicable accounting framework and includes goodwil
DEFERRED TAX ASSETS	It has the same meaning as under the applicable accounting framework
DEFERRED TAX ASSETS THAT RELY ON FUTURE PROFITABILITY	Deferred tax assets the future value of which may be realised only in the event the institution generates taxable profit in the future;
FINANCIAL COLLATERAL ARRANGEMENT	A title transfer financial collateral arrangement or a security financial collateral arrangement whether or not these are covered by a master agreement or general terms and conditions;
TITLE TRANSFER COLLATERAL ARRANGEMENT	An arrangement, including repurchase agreements, under which a collateral provider transfers full ownership of financial collateral to a collateral taker for the purpose of securing or otherwise covering the performance of relevant financial obligations;
SECURITY COLLATERAL ARRANGEMENT	An arrangement under which a collateral provider provides financial collateral by way of security in favour of, or to, a collateral taker, and where the full ownership of the financial collateral remains with the collateral provider when the security right is established;
DIRECT DEBIT	A payment service for debiting a payer’s payment account, where a payment transaction is initiated by the payee on the basis of the consent given by the payer to the payee, to the payee’s payment service provider or to the payer’s own payment service provider;
ADMINISTRATOR	A natural or legal person that has control over the provision of a benchmark
ACQUIRING OF PAYMENT TRANSACTIONS	A payment service provided by a payment service provider contracting with a payee to accept and process payment transactions, which results in a transfer of funds to the payee;
EXTERNAL CREDIT ASSESSMENT INTITUION OR ECAI	A credit rating agency that is registered or certified in accordance with Regulation (EC) No 1060/2009 of the European Parliament and of the Council of 16 September 2009 on credit rating agencies or a central bank issuing credit ratings which are exempt from the application of Regulation (EC) No 1060/2009
AGENT	A natural or legal person who acts on behalf of a payment institution in providing payment services
SETTLEMENT AGENT	Shall mean an entity providing to institutions and/or a central counterparty participating in systems, settlement accounts through which transfer orders within such systems are settled and, as the case may be, extending credit to those institutions and/or central counterparties for settlement purposes
REPORTING AGENT	Shall mean the legal and natural persons and the entities referred to in Article 2(3) of Regulation No 2533/98 which are subject to the ECB’s statistical reporting requirements
CREDIT RISK ADJUSTMENT	The amount of specific and general loan loss provision for credit risks that has been recognised in the financial statements of the institution in accordance with the applicable accounting framework
SENIOR MANAGEMENT	The person or persons who effectively conduct the business of a management company in accordance with Article 7(1)(b) of Directive 2009/65/EC
LEVERAGE	Any method by which the AIFM increases the exposure of an AIF it manages whether through borrowing of cash or securities, or leverage embedded in derivative positions or by any other
CONTRIBUTION OF INPUT DATA	Providing any input data not readily available to an administrator, or to another person for the purposes of passing to an administrator, that is required in connection with the determination of a benchmark, and is provided for that purpose
EXPERT JUDGEMENT	The exercise of discretion by an administrator or a contributor with respect to the use of data in determining a benchmark, including extrapolating values from prior or related transactions, adjusting values for factors that might influence the quality of data such as market events or impairment of a buyer or seller’s credit quality, and weighting firm bids or offers greater than a particular concluded transaction
FINANCIAL ADVISER	(a) an insurance intermediary which provides insurance advice with regard to IBIPs; (b) an insurance undertaking which provides insurance advice with regard to IBIPs; (c) a credit institution which provides investment advice; (d) an investment firm which provides investment advice; (e) an AIFM which provides investment advice in accordance with point (b)(i) of Article 6(4) of Directive 2011/61/EU; or (f) a UCITS management company which provides investment advice in accordance with point (b)(i) of Article 6(3) of Directive 2009/65/EC
INSURANCE ADVICE	The provision of a personal recommendation to a customer, either upon their request or at the initiative of the insurance distributor, in respect of one or more insurance contracts
INVESTMENT ADVICE	The provision of personal recommendations to a client, either upon its request or at the initiative of the investment firm, in respect of one or more transactions relating to financial instruments.
THRID – COUNTRY AUDITOR	A natural person who carries out audits of the annual or consolidated accounts of a company incorporated in a third country;
GROUP AUDITOR	The statutory auditor(s) or audit firm(s) carrying out the statutory audit of consolidated accounts
STATUTORY AUDITOR	A natural person who is approved in accordance with Directive 2006/43/EC by the competent authorities of a Member State to carry out statutory audits;
STATUTORY AUDIT	An audit of annual accounts or consolidated accounts insofar as required by Community law;
AUTHENTICATION	A procedure which allows the payment service provider to verify the identity of a payment service user or the validity of the use of a specific payment instrument, including the use of the user’s personalised security credentials
STRONG CUSTOMER AUTHENTICATION	An authentication based on the use of two or more elements categorised as knowledge (something only the user knows), possession (something only the user possesses) and inherence (something the user is) that are independent, in that the breach of one does not compromise the reliability of the others, and is designed in such a way as to protect the confidentiality of the authentication data;
COMPETENT AUTHORITY	A public authority or body officially recognised by national law, which is empowered by national law to supervise institutions as part of the supervisory system in operation in the Member State concerned
COMPETENT AUTHORITY OF THE ELTIF	The national authorities of a Member State which are empowered by law or regulation to supervise AIFs
COMPETENT AUTHORITY OF THE MANAGER OF THE ELTIF	The Member State in which the AIFM has its registered office; for non-EU AIFMs, all references to ‘home Member State of the AIFM’ in Directive 2011/61/EU shall be read as the ‘Member State of reference’
RELEVANT AUTHORITY	Any authority referred to in Article 12 of Regulation 909/214
PUBLIC AUTHORITY	(a)any government or other public administration, including the entities charged with or intervening in the management of the public debt; (b)any entity or person either performing public administrative functions under national law or having public responsibilities or functions or providing public services, including measures of employment, economic activities and inflation, under the control of an entity within the meaning of point (a)
COMPETENT AUTHORITIES	The authorities or bodies designated by law that are in charge of the regulation and/or oversight of statutory auditors and audit firms or of specific aspects thereof; the reference to ‘competent authority’ in a specific article means a reference to the authority or body(ies) responsible for the functions referred to in that Article;
COMPETENT AUTHORITIES OF THE EU AIF	The national authorities of a Member State which are empowered by law or regulation to supervise AIFs
SUPERVISORY AUTHORITIES’ IN RELATION TO NON-EU AIFS	The national authorities of a third country which are empowered by law or regulation to supervise AIFs
SUPERVISORY AUTHORITIES	In relation to non-EU AIFs the national authorities of a third country which are empowered by law or regulation to supervise AIFs
AUTHORISATION	An instrument issued in any form by the authorities by which the right to carry out the business is granted
CENTRAL BANKS	The ESCB central banks and the central banks of third countries
ESCB CENTRAL BANKS	The national central banks that are members of the European System of Central Banks (ESCB), and the European Central Bank (ECB)
CONSOLIDATED BASIS	on the basis of the consolidated situation
SUB-CONSOLIDATED BASIS	On the basis of the consolidated situation of a parent institution, financial holding company or mixed financial holding company, excluding a sub-group of entities, or on the basis of the consolidated situation of a parent institution, financial holding company or mixed financial holding company that is not the ultimate parent institution, financial holding company or mixed financial holding company
RELEVANT NCB	The NCB of the euro area Member State in which the IF is resident
PAYEE	A natural or legal person who is the intended recipient of funds which have been the subject of a payment transaction;
PROFIT	Has the same meaning as under the applicable accounting framework
DISCRETIONARY PENSION BENEFITS	Enhanced pension benefits granted on a discretionary basis by an institution to an employee as part of that employee’s variable remuneration package, which do not include accrued benefits granted to an employee under the terms of the company pension scheme
RESIDENTIAL PROPERTY	A residence which is occupied by the owner or the lessee of the residence, including the right to inhabit an apartment in housing cooperatives located in Sweden;
CLEARING HOUSE	Shall mean an entity responsible for the calculation of the net positions of institutions, a possible central counterparty and/or a possible settlement agent;
EQUITY	Ownnership interest in a qualifying portfolio undertaking, represented by the shares or other forms of participation in the capital of the qualifying portfolio undertaking issued to its investors
ELIGIBLE CAPITAL	(a)for the purposes of Title III of Part Two of Regulation EU 575/2013 it the sum of the following: (i) Tier 1 capital as referred to in Article 25, without applying the deduction in Article 36(1)(k)(i); (ii)Tier 2 capital as referred to in Article 71 that is equal to or less than one third of Tier 1 capital as calculated pursuant to point (i) of this point; (b)for the purposes of Article 97 Regulation EU 575/2013 it the sum of the following: (i) Tier 1 capital as referred to in Article 25; (ii) Tier 2 capital as referred to in Article 71 that is equal to or less than one third of Tier 1 capital;
COMMITTED CAPITAL	Any commitment pursuant to which an investor is obliged, within the time frame laid down in the rules or instruments of incorporation of the qualifying social entrepreneurship fund, to acquire an interest in, or to make capital contributions to, that fund
INITIAL CAPITAL	1.Funds as referred to in points (a) and (b) of the first paragraph of Article 57 of Directive 2006/48/EC 2. The amount and types of own funds specified in Article 12 of Directive 2013/36/EU for credit institutions and in Title IV of that Directive for investment firms;
TRADING BOOK	All positions in financial instruments and commodities held by an institution either with trading intent, or in order to hedge positions held with trading intent
TRADING VENUE	A regulated market, an MTF or an OTF;
CLOSE – OUT NETTING PROVISION	A provision of a financial collateral arrangement, or of an arrangement of which a financial collateral arrangement forms part, or, in the absence of any such provision, any statutory rule by which, on the occurrence of an enforcement event, whether through the operation of netting or set-off or otherwise: (i) the obligations of the parties are accelerated so as to be immediately due and expressed as an obligation to pay an amount representing their estimated current value, or are terminated and replaced by an obligation to pay such an amount; and/or (ii) an account is taken of what is due from each party to the other in respect of such obligations, and a net sum equal to the balance of the account is payable by the party from whom the larger amount is due to the other party.
CLIENT	Any natural or legal person, or any other undertaking including a UCITS, to whom a management company provides a service of collective portfolio management or services pursuant to Article 6(3) of Directive 2009/65/EC
PROFESSIONAL CLIENTE	A client meeting the criteria laid down in Annex II of MiFID II. (1) 1)Entities which are required to be authorised or regulated to operate in the financial markets. The list below shall be understood as including all authorised entities carrying out the characteristic activities of the entities mentioned: entities authorised by a Member State under a Directive, entities authorised or regulated by a Member State without reference to a Directive, and entities authorised or regulated by a third country: (a)Credit institutions; (b)Investment firms; (c)Other authorised or regulated financial institutions; (d)Insurance companies; (e)Collective investment schemes and management companies of such schemes; (f)Pension funds and management companies of such funds; (g)Commodity and commodity derivatives dealers; (h)Locals; (i)Other institutional investors; (2)Large undertakings meeting two of the following size requirements on a company basis: — balance sheet total: EUR 20 000 000 — net turnover: EUR 40 000 000 — own funds: EUR 2 000 000 (3)National and regional governments, including public bodies that manage public debt at national or regional level, Central Banks, international and supranational institutions such as the World Bank, the IMF, the ECB, the EIB and other similar international organisations. (4)Other institutional investors whose main activity is to invest in financial instruments, including entities dedicated to the securitisation of assets or other financing transactions.
UNFUNDED CREDIT PROTECTION	A technique of credit risk mitigation where the reduction of the credit risk on the exposure of an institution derives from the obligation of a third party to pay an amount in the event of the default of the borrower or the occurrence of other specified credit events;
FUNDED CREDIT PROTECTION	A technique of credit risk mitigation where the reduction of the credit risk on the exposure of an institution derives from the right of that institution, in the event of the default of the counterparty or on the occurrence of other specified credit events relating to the counterparty, to liquidate, or to obtain transfer or appropriation of, or to retain certain assets or amounts, or to reduce the amount of the exposure to, or to replace it with, the amount of the difference between the amount of the exposure and the amount of a claim on the institution
INTERNAL HEDGE	A position that materially offsets the component risk elements between a trading book and a non-trading book position or sets of positions;
MARKETING	A direct or indirect offering or placement at the initiative of the AIFM or on behalf of the AIFM of units or shares of an AIF it manages to or with investors domiciled or with a registered office in the Union
NETTING	The conversion into one net claim or one net obligation of claims and obligations resulting from transfer orders which a participant or participants either issue to, or receive from, one or more other participants with the result that only a net claim can be demanded or a net obligation be owed;
BOARD OF DIRECTORS	The board of directors of the management company
CONSUMER	A natural person who, in financial contracts covered by Regulation (EU) 2016/1011, is acting for purposes which are outside his or her trade, business or profession
DIGITAL CONTENT	Goods or services which are produced and supplied in digital form, the use or consumption of which is restricted to a technical device and which do not include in any way the use or consumption of physical goods or services
CENTRAL COUNTERPARTY	An entity which is interposed between the institutions in a system and which acts as the exclusive counterparty of these institutions with regard to their transfer orders;
FINANCIAL COUNTERPARTY	(a)an investment firm authorised in accordance with Directive 2014/65/EU of the European Parliament and of the Council ; (b)a credit institution authorised in accordance with Directive 2013/36/EU of the European Parliament and of the Council or with Regulation (EU) No 1024/2013; (c)an insurance undertaking or a reinsurance undertaking authorised in accordance with Directive 2009/138/EC of the European Parliament and of the Council ; (d)a UCITS and, where relevant, its management company, authorised in accordance with Directive 2009/65/EC; (e)an AIF managed by AIFMs authorised or registered in accordance with Directive 2011/61/EU; (f)an institution for occupational retirement provision authorised or registered in accordance with Directive 2003/41/EC of the European Parliament and of the Council ; (g)a central counterparty authorised in accordance with Regulation (EU) No 648/2012; (h)a central securities depository authorised in accordance with Regulation (EU) No 909/2014 of the European Parliament and of the Council ; (i)a third-country entity which would require authorisation or registration in accordance with the legislative acts referred to in points (a) to (h) if it were established in the Union;
NON-FINANCIAL COUNTERPARTY	An undertaking established in the Union or in a third country other than the entities referred to as financial counterparty
COUNTERPARTIES	Financial counterparties and non-financial counterparties;
FINANCIAL CONTRACT	(a)an agreement whereby a creditor grants or promises to grant to a consumer credit in the form of a deferred payment, loan or other similar financial accommodation, except for agreements for the provision on a continuing basis of services or for the supply of goods of the same kind, where the consumer pays for such services or goods for the duration of their provision by means of instalments (b)an agreement whereby a creditor grants or promises to grant, to a consumer, a credit falling within the scope of Article 3 of Directive 2014/17/EU in the form of a deferred payment, loan or other similar financial accommodation
FRAMEWORK CONTRACT	A payment service contract which governs the future execution of individual and successive payment transactions and which may contain the obligation and conditions for setting up a payment account
PRE-FUNDED CONTRIBUTION TO THE DEFAULT FUND OF A CCP	A contribution to the default fund of a CCP that is paid in by an institution
CONTRIBUTOR	A natural or legal person contributing input data
SUPERVISED CONTRIBUTOR	A supervised entity that contributes input data to an administrator located in the Union
CONTROL	Control as defined in Article 1 of Directive 83/349/EEC
COOPERATIVE	A European Cooperative Society as defined in Article 1 of Council Regulation (EC) No 1435/2003 of 22 July 2003 on the Statute for a European Cooperative Society (SCE) (17), or any other cooperative for which a statutory audit is required under Community law, such as credit institutions as defined in point 1 of Article 1 of Directive 2000/12/EC and insurance undertakings within the meaning of Article 2(1) of Directive 91/674/EEC;
RELEVANT COSTS	All fees, charges and expenses which are directly or indirectly borne by investors and which are agreed between the manager of a qualifying social entrepreneurship fund and the investors therein
PERSONALISED SECURITY CREDENTIALS	Personalised features provided by the payment service provider to a payment service user for the purposes of authentication;
OFFICIAL SUPPORTED EXPORT CREDITS	Loans or credits to finance the export of goods and services for which an official export credit agency provides guarantees, insurance or direct financing
QUASI-EQUITY	Any type of financing instrument where the return on the instrument is linked to the profit or loss of the qualifying portfolio undertaking and where the repayment of the instrument in the event of default is not fully secured
SETTLEMENT ACCOUNT	An account at a central bank, a settlement agent or a central counterparty used to hold funds and securities and to settle transactions between participants in a system;
PAYMENT ACCOUNT	An account held in the name of one or more payment service users which is used for the execution of payment transactions
SHARE PREMIUM ACCOUNT	It has the same meaning as under the applicable accounting framework
SECURITIES ACCOUNT	An account on which securities may be credited or debited
RELEVANT ACCOUNT	In relation to book entry securities collateral which is subject to a financial collateral arrangement, the register or account – which may be maintained by the collateral taker – in which the entries are made by which that book entry securities collateral is provided to the collateral taker;
INPUT DATA	The data in respect of the value of one or more underlying assets, or prices, including estimated prices, quotes, committed quotes or other values, used by an administrator to determine a benchmark
SENSITIVE PAYMENT DATA	Data, including personalised security credentials which can be used to carry out fraud. For the activities of payment initiation service providers and account information service providers, the name of the account owner and the account number do not constitute sensitive payment data
SECURITY-BY-SECURITY DATA	Data broken down into individual securities
THIRD-COUNTRY CSD	Any legal entity established in a third country that provides a similar service to the core service referred to in point (3) of Section A of the Annex and performs at least one other core service listed in Section A of the Annex of Regulation (EU) No 909/2014
RECEIVING CSD	The CSD which receives the request of another CSD to have access to its services through a CSD link
REQUESTING CSD	The CSD which requests access to the services of another CSD through a CSD link
SUPERVISORY FUNCTION	The relevant persons or body or bodies responsible for the supervision of its senior management and for the assessment and periodical review of the adequacy and effectiveness of the risk management process and of the policies, arrangements and procedures put in place to comply with the obligations under Directive 2009/65/EC
CENTRAL SECURITIES DEPOSITORY OR CSD	A legal person that operates a securities settlement system referred to in point (3) of Section A of the Annex and provides at least one other core service listed in Section A of the Annex of Regulation (EU) No 909/2014
RIGHT OF USE	The right of the collateral taker to use and dispose of financial collateral provided under a security financial collateral arrangement as the owner of it in accordance with the terms of the security financial collateral arrangement;
EMISSION ALLOWANCE	Emission allowance as described in point (11) of Section C of Annex I to Directive 2014/65/EU, excluding derivatives in emission allowances
BUSINESS DAY	A day on which the relevant payment service provider of the payer or the payment service provider of the payee involved in the execution of a payment transaction is open for business as required for the execution of a payment transaction
TEMPORARY DIFFERENCES	It has the same meaning as under the applicable accounting framework;
DISTRIBUTIONS	The payment of dividends or interest in any form
CASH	Money credited to an account in any currency, or similar claims for the repayment of money, such as money market deposits;
PROVISION OF A BENCHMARK	(a) administering the arrangements for determining a benchmark; (b) collecting, analysing or processing input data for the purpose of determining a benchmark; and (c)determining a benchmark through the application of a formula or other method of calculation or by an assessment of input data provided for that purpose;
ADDITIONAL TIER 1 OWN-FUND INSURANCE ITEMS	Basic own-fund items of undertakings subject to the requirements of Directive 2009/138/EC where those items are classified in Tier 1 within the meaning of Directive 2009/138/EC in accordance with Article 94(1) of that Directive and the inclusion of those items is limited by the delegated acts adopted in accordance with Article 99 of that Directive
TIER 1 OWN-FUND INSURANCE ITEMS	Basic own-fund items of undertakings subject to the requirements of Directive 2009/138/EC where those items are classified in Tier 1 within the meaning of Directive 2009/138/EC in accordance with Article 94(1) of that Directive
TIER 2 OWN-FUND INSURANCE ITEMS	Basic own-fund items of undertakings subject to the requirements of Directive 2009/138/EC where those items are classified in Tier 2 within the meaning of Directive 2009/138/EC in accordance with Article 94(2) of that Directive
TIER 3 OWN-FUND INSURANCE ITEMS	Basic own-fund insurance items of undertakings subject to the requirements of Directive 2009/138/EC where those items are classified in Tier 3 within the meaning of Directive 2009/138/EC in accordance with Article 94(3) of that Directive
ISSUING OF PAYMENT INSTRUMENTS	A payment service by a payment service provider contracting to provide a payer with a payment instrument to initiate and process the payer’s payment transactions
ISSUER	An issuer within the meaning of point (d) of Article 2(1) of Directive 2004/109/EC where that issuer has its registered office in the Union, and where its shares are admitted to trading on a regulated market within the meaning of point (14) of Article 4(1) of Directive 2004/39/EC
INVESTMENT FIRM	A person as defined in point (1) of Article 4(1) of Directive 2004/39/EC, which is subject to the requirements imposed by that Directive, excluding the following: (a)credit institutions; (b)local firms;(c)firms which are not authorised to provide the ancillary service referred to in point (1) of Section B of Annex I to Directive 2004/39/EC, which provide only one or more of the investment services and activities listed in points 1, 2, 4 and 5 of Section A of Annex I to that Directive, and which are not permitted to hold money or securities belonging to their clients and which for that reason may not at any time place themselves in debt with those clients;
RECOGNISED THIRD – COUNTRY INVESTMENT FIRM	A firm meeting all of the following conditions: (a)if it were established within the Union, it would be covered by the definition of an investment firm; (b)it is authorised in a third country; (c)it is subject to and complies with prudential rules considered by the competent authorities as at least as stringent as those laid down in this Regulation or in Directive 2013/36/EU;
INSURANCE UNDERTAKING	A direct life or non-life insurance undertaking which has received authorisation in accordance with Article 14 of Directive 2009/138/CE
THIRD-COUNTRY INSURANCE UNDERTAKING	An undertaking which would require authorisation as an insurance undertaking in accordance with Article 14 of Directive 2009/138/CE if its head office were situated in the Community;
ANCILLARY SERVICES UNDERTAKING	An undertaking the principal activity of which consists of owning or managing property, managing data-processing services, or a similar activity which is ancillary to the principal activity of one or more institutions
INVESTMENT FIRM	Any legal person whose regular occupation or business is the provision of one or more investment services to third parties and/or the performance of one or more investment activities on a professional basis. Member States may include in the definition of investment firms undertakings which are not legal persons, provided that: (a)their legal status ensures a level of protection for third parties’ interests equivalent to that afforded by legal persons; and (b)they are subject to equivalent prudential supervision appropriate to their legal form. However, where a natural person provides services involving the holding of third party funds or transferable securities, that person may be considered to be an investment firm for the purposes of this Directive and of Regulation (EU) No 600/2014 only if, without prejudice to the other requirements imposed in this Directive, in Regulation (EU) No 600/2014, and in Directive 2013/36/EU, that person complies with the following conditions: (a)the ownership rights of third parties in instruments and funds must be safeguarded, especially in the event of the insolvency of the firm or of its proprietors, seizure, set-off or any other action by creditors of the firm or of its proprietors; (b)the firm must be subject to rules designed to monitor the firm’s solvency and that of its proprietors; (c)the firm’s annual accounts must be audited by one or more persons empowered, under national law, to audit accounts; (d) where the firm has only one proprietor, that person must make provision for the protection of investors in the event of the firm’s cessation of business following the proprietor’s death or incapacity or any other such event;
QUALIFYING PORTFOLIO UNDERTAKING	An undertaking that: (i) at the time of an investment by the qualifying social entrepreneurship fund is not admitted to trading on a regulated market or on a multilateral trading facility (MTF) as defined in point (14) and point (15) of Article 4(1) of Directive 2004/39/EC; (ii) has the achievement of measurable, positive social impacts as its primary objective in accordance with its articles of association, statutes or any other rules or instruments of incorporation establishing the business, where the undertaking: — provides services or goods to vulnerable or marginalised, disadvantaged or excluded persons, — employs a method of production of goods or services that embodies its social objective, or — provides financial support exclusively to social undertakings as defined in the first two indents; (iii) uses its profits primarily to achieve its primary social objective in accordance with its articles of association, statutes or any other rules or instruments of incorporation establishing the business and with the predefined procedures and rules therein, which determine the circumstances in which profits are distributed to shareholders and owners to ensure that any such distribution of profits does not undermine its primary objective; (iv) is managed in an accountable and transparent way, in particular by involving workers, customers and stakeholders affected by its business activities; (v) is established within the territory of a Member State, or in a third country provided that the third country: — is not listed as a Non-Cooperative Country and Territory by the Financial Action Task Force on Anti-Money Laundering and Terrorist Financing, — has signed an agreement with the home Member State of the manager of a qualifying social entrepreneurship fund and with each other Member State in which the units or shares of the qualifying social entrepreneurship fund are intended to be marketed to ensure that the third country fully complies with the standards laid down in Article 26 of the OECD Model Tax Convention on Income and on Capital and ensures an effective exchange of information in tax matters, including any multilateral tax agreements
FINANCIAL UNDERTAKING	Any of the following: (a) a credit institution as defined in point (1) of Article 4(1) of Regulation (EU) No 575/2013 of the European Parliament and of the Council ( 1 ); (b) an investment firm as defined in point (1) of Article 4(1) of Directive 2014/65/EU; (c) an insurance undertaking as defined in point (1) of Article 13 of Directive 2009/138/EC of the European Parliament and of the Council ( 2 ); (d) a financial holding company as defined in point (20) of Article 4(1) of Regulation (EU) No 575/2013; (e) a mixed-activity holding company as defined in point (22) of Article 4(1) of Regulation (EU) No 575/2013; (f) a management company as defined in point (b) of Article 2(1) of Directive 2009/65/EC; (g) an AIFM as defined in point (b) of Article 4(1) of Directive 2011/61/EU
LOCAL FIRM	A firm dealing for its own account on markets in financial futures or options or other derivatives and on cash markets for the sole purpose of hedging positions on derivatives markets, or dealing for the accounts of other members of those markets and being guaranteed by clearing members of the same markets, where responsibility for ensuring the performance of contracts entered into by such a firm is assumed by clearing members of the same markets
PARENT UNDERTAKING	A parent undertaking within the meaning of Articles 1 and 2 of Directive 83/349/EEC
NON-LISTED COMPANY	A company which has its registered office in the Union and the shares of which are not admitted to trading on a regulated market
REINSURANCE UNDERTAKING	An undertaking which has received authorisation in accordance with Article 14 of Directive 2009/138/CE to pursue reinsurance activities
THIRD-COUNTRY REINSURANCE UNDERTAKING	An undertaking which would require authorisation as a reinsurance undertaking in accordance with Article 14 of Directive 2009/138/CE if its head office were situated in the Community
CSD LINK	An arrangement between CSDs whereby one CSD becomes a participant in the securities settlement system of another CSD in order to facilitate the transfer of securities from the participants of the latter CSD to the participants of the former CSD or an arrangement whereby a CSD accesses another CSD indirectly via an intermediary. CSD links include standard links, customised links, indirect links, and interoperable links
STANDARD LINK	A CSD link whereby a CSD becomes a participant in the securities settlement system of another CSD under the same terms and conditions as applicable to any other participant in the securities settlement system operated by the latter
INDIRECT LINK	An arrangement between a CSD and a third party other than a CSD, that is a participant in the securities settlement system of another CSD. Such link is set up by a CSD in order to facilitate the transfer of securities to its participants from the participants of another CSD
INTEROPERABLE LINK	A CSD link whereby CSDs agree to establish mutual technical solutions for settlement in the securities settlement systems that they operate
CUSTOMISED LINK	A CSD link whereby a CSD that becomes a participant in the securities settlement system of another CSD is provided with additional specific services to the services normally provided by that CSD to participants in the securities settlement system
FINANCIAL SECTOR ENTITY	Any of the following: (a)an institution; (b)a financial institution; (c)an ancillary services undertaking included in the consolidated financial situation of an institution; (d)an insurance undertaking; (e)a third-country insurance undertaking; (f)a reinsurance undertaking; (g)a third-country reinsurance undertaking; (h)an insurance holding company; (i)a mixed-activity holding company (j)a mixed-activity insurance holding company as defined in point (g) of Article 212(1) of Directive 2009/138/EC; (k)an undertaking excluded from the scope of Directive 2009/138/EC in accordance with Article 4 of that Directive; (l)a third-country undertaking with a main business comparable to any of the entities referred to in points (a) to (k)
PUBLIC SECTOR ENTITY	a non-commercial administrative body responsible to central governments, regional governments or local authorities, or to authorities that exercise the same responsibilities as regional governments and local authorities, or a non-commercial undertaking that is owned by or set up and sponsored by central governments, regional governments or local authorities, and that has explicit guarantee arrangements, and may include self-administered bodies governed by law that are under public supervision
INSTITUTION	shall mean: a)a credit institution as defined in the first indent of Article 1 of Directive 77/780/EEC (5) including the institutions set out in the list in Article 2(2) thereof, or b)an investment firm as defined in point 2 of Article 1 of Directive 93/22/EEC (6) excluding the institutions set out in the list in Article 2(2)(a) to (k) thereof, c)public authorities and publicly guaranteed undertakings, d) any undertaking whose head office is outside the Community and whose functions correspond to those of the Community credit institutions or investment firms as defined in the first and second indent, which participates in a system and which is responsible for discharging the financial obligations arising from transfer orders within that system.
THRID -COUNTRY AUDIT ENTITY	An entity, regardless of its legal form, which carries out audits of the annual or consolidated accounts of a company incorporated in a third country;
CCP	A legal person that interposes itself between the counterparties to the contracts traded on one or more financial markets, becoming the buyer to every seller and the seller to every buyer
QCCP	A central counterparty that has been either authorised in accordance with Article 14 of Regulation (EU) No 648/2012 or recognised in accordance with Article 25 of that Regulation
CREDIT INSTITUTION	An undertaking the business of which is to take deposits or other repayable funds from the public and to grant credits for its own account
PUBLIC – INTEREST ENTITIES	Entities governed by the law of a Member State whose transferable securities are admitted to trading on a regulated market of any Member State within the meaning of point 14 of Article 4(1) of Directive 2004/39/EC, credit institutions as defined in point 1 of Article 1of Directive 2000/12/EC of the European Parliament and of the Council of 20 March 2000 relating to the taking up and pursuit of the business of credit institutions (16) and insurance undertakings within the meaning of Article 2(1) of Directive 91/674/EEC. Member States may also designate other entities as public-interest entities, for instance entities that are of significant public relevance because of the nature of their business, their size or the number of their employees;
PAYMENT INSTITUTION	A legal person that has been granted authorisation in accordance with Article 11 of PSD2 Directive to provide and execute payment services throughout the Union
FINANCIAL INSTITUTION	An undertaking other than an institution, the principal activity of which is to acquire holdings or to pursue one or more of the activities listed in points 2 to 12 and point 15 of Annex I to Directive 2013/36/EU, including a financial holding company, a mixed financial holding company, a payment institution within the meaning of Directive 2007/64/EC of the European Parliament and of the Council of 13 November 2007 on payment services in the internal market (23), and an asset management company, but excluding insurance holding companies and mixed-activity insurance holding companies as defined in point (g) of Article 212(1) of Directive 2009/138/E
EU PARENT INSTITUTION	A parent institution in a Member State which is not a subsidiary of another institution authorised in any Member State, or of a financial holding company or mixed financial holding company set up in any Member State
PARENT INSTITUION IN A MEMBER STATE	An institution in a Member State which has a institution or a financial institution as a subsidiary or which holds a participation in such an institution or financial institution, and which is not itself a subsidiary of another institution authorised in the same Member State, or of a financial holding company or mixed financial holding company set up in the same Member State
SUPERVISED ENTITY	Any of the following: (a)a credit institution (b) an investment firm c) an insurance undertaking (d) a reinsurance undertaking (e)a UCITS (f)an alternative investment fund manager (AIFM) (g) an institution for occupational retirement provision (h)a creditor (i) a non-credit institution (j)a market operator (k) a CCP (l) a trade repository (m) an administrator;
DELIVERY VERSUS PAYMENT OR DVP	A securities settlement mechanism which links a transfer of securities with a transfer of cash in a way that the delivery of securities occurs if and only if the corresponding transfer of cash occurs and vice versa
ESTABLISHED	(a)if the counterparty is a natural person, where it has its head office; (b)if the counterparty is a legal person, where it has its registered office; (c)if the counterparty has, under its national law, no registered office, where it has its head office
ESTABLISHED	(i) for AIFMs, ‘having its registered office in’; (ii) for AIFs, ‘being authorised or registered in’, or, if the AIF is not authorised or registered, ‘having its registered office in’; (iii) for depositaries, ‘having its registered office or branch in’; (iv) for legal representatives that are legal persons, ‘having its registered office or branch in’; (v) for legal representatives that are natural persons, ‘domiciled in
HOST MEMBER STATE	The Member State in which an institution has a branch or in which it provides services;
HOST MEMBER STATE OF THE AIFM	Any of the following: (i)a Member State, other than the home Member State, in which an EU AIFM manages EU AIFs; (ii)a Member State, other than the home Member State, in which an EU AIFM markets units or shares of an EU AIF; (iii)a Member State, other than the home Member State, in which an EU AIFM markets units or shares of a non-EU AIF; (iv)a Member State, other than the Member State of reference, in which a non-EU AIFM manages EU AIFs; (v)a Member State, other than the Member State of reference, in which a non-EU AIFM markets units or shares of an EU AIF; or (vi)a Member State, other than the Member State of reference, in which a non-EU AIFM markets units or shares of a non-EU AIF;
UCITS HOST MEMBER STATE	A Member State, other than the UCITS home Member State, in which the units of the UCITS are marketed
MANAGEMENT COMPANY’S HOST MEMBER STATE	A Member State, other than the home Member State, within the territory of which a management company has a branch or provides services
HOST MEMBER STATE OF THE FESE	The Member State, other than the home Member State, where the manager of a qualifying social entrepreneurship fund markets qualifying social entrepreneurship funds in accordance with Regulation 346/2013
HOME MEMBER STATE	the Member State in which an institution has been granted authorisation;
HOME MEMBER STATE	The Member State where the manager of a qualifying social entrepreneurship fund is established and is subject to registration with the competent authorities in accordance with point (a) of Article 3(3) of Directive 2011/61/EU
HOME MEMBER STATE OF THE AIF	The Member State in which the AIF is authorised or registered under applicable national law, or in case of multiple authorisations or registrations, the Member State in which the AIF has been authorised or registered for the first time; or (ii) if the AIF is neither authorised nor registered in a Member State, the Member State in which the AIF has its registered office and/or head office
HOME MEMBER STATE OF THE AIFM	The Member State in which the AIFM has its registered office; for non-EU AIFMs, all references to ‘home Member State of the AIFM’ in this Directive shall be read as the ‘Member State of reference’, as provided for in Chapter VII
UCITS HOME MEMBER STATE	The Member State in which the UCITS is authorised pursuant to Article 5 of Directive 2009/65/EC
MANAGEMENT COMPANY’S HOME MEMBER STATE	The Member State in which the management company has its registered office
HOME MEMBER STATE OF THE ELTIF	The Member State where the ELTIF is authorised
MEMBER STATE OF REFERENCE	The Member State determined in accordance with Article 37(4) of Directive 2011/61/EU
ASSESSOR	An employee of an administrator of a commodity benchmark, or any other natural person whose services are placed at the administrator’s disposal or under the control of the administrator, and who is responsible for applying a methodology or judgement to input data and other information to reach a conclusive assessment about the price of a certain commodity
TRADE EXPOSURE	a current exposure, including a variation margin due to the clearing member but not yet received, and any potential future exposure of a clearing member or a client, to a CCP arising from contracts and transactions listed in points (a) to (e) of Article 301(1) of Regulation 575/2013, as well as initial margin;
CONVERSION FACTOR	The ratio of the currently undrawn amount of a commitment that could be drawn and that would therefore be outstanding at default to the currently undrawn amount of the commitment, the extent of the commitment being determined by the advised limit, unless the unadvised limit is higher
SUSTAINABILITY FACTORS	Environmental, social and employee matters, respect for human rights, anti‐corruption and anti‐bribery matter
SETTLEMENT FAIL	The non-occurrence of settlement, or partial settlement of a securities transaction on the intended settlement date, due to a lack of securities or cash and regardless of the underlying cause
FAMILY OF BENCHMARKS	A group of benchmarks provided by the same administrator and determined from input data of the same nature which provides specific measures of the same or similar market or economic reality
VALUE DATE	A reference time used by a payment service provider for the calculation of interest on the funds debited from or credited to a payment account;
INTENDED SETTLEMENT DATE	The date that is entered into the securities settlement system as the settlement date and on which the parties to a securities transaction agree that settlement is to take place
NON-EU AIF	An AIF which is not an EU AIF
EU AIF	(i) an AIF which is authorised or registered in a Member State under the applicable national law; or (ii) an AIF which is not authorised or registered in a Member State, but has its registered office and/or head office in a Member State
MASTER AIF	An AIF in which another AIF invests or has an exposure in accordance with point (m);
FEEDER AIF	An AIF which: (i) invests at least 85 % of its assets in units or shares of another AIF (the ‘master AIF’); (ii) invests at least 85 % of its assets in more than one master AIFs where those master AIFs have identical investment strategies; or (iii) has otherwise an exposure of at least 85 % of its assets to such a master AIF;
SUBSIDIARY	a subsidiary undertaking as defined in Articles 1 and 2 of Directive 83/349/EEC
AFFILIATE OF AN AUDIT FIRM	Any undertaking, regardless of its legal form, which is connected to an audit firm by of common ownership, control or management;
SPECULATIVE INMMOVABLE PROPERTY FINANCING	Loans for the purposes of the acquisition of or development or construction on land in relation to immovable property, or of and in relation to such property, with the intention of reselling for profit
TRADE FINANCE	Financing, including guarantees, connected to the exchange of goods and services through financial products of fixed short-term maturity, generally of less than one year, without automatic rollover
QUALIFYING VENTURE CAPITAL FUND	A collective investment undertaking that: (i) intends to invest at least 70 % of its aggregate capital contributions and uncalled committed capital in assets that are qualifying investments, calculated on the basis of amounts investible after deduction of all relevant costs and holdings in cash and cash equivalents, within a time frame laid down in its rules or instruments of incorporation; (ii) does not use more than 30 % of its aggregate capital contributions and uncalled committed capital for the acquisition of assets other than qualifying investments, calculated on the basis of amounts investible after deduction of all relevant costs and holdings in cash and cash equivalents; (iii) is established within the territory of a Member State
GOODWILL	It has the same meaning as under the applicable accounting framework
INVESTMENT FUND (IF)	A collective investment undertaking that: (a) invests in financial and/or non-financial assets, within the meaning of Annex II, to the extent that its objective is investing capital raised from the public; and (b) is constituted pursuant to Union or national law under: (i) contract law, as a common fund managed by management companies; (ii) trust law, as a unit trust; (iii) company law, as an investment company; (iv) any other similar mechanism or legal form. The following are included within the definition: (a) undertakings whose units or shares are, at the request of the holders, repurchased or redeemed directly or indirectly out of the undertaking’s assets; and (b) undertakings which have a fixed number of issued shares and whose shareholders have to buy or sell existing shares when entering or leaving the fund. The following are not included within the definition: (a) pension funds as defined in the revised European System of Accounts (hereinafter the ‘ESA 2010’) laid down by Regulation (EU) No 549/2013 (sub-sector S.129); (b) money market funds (MMFs) as defined in Annex I to Regulation (EU) No 1071/2013 of the European Central Bank of 24 September 2013 concerning the balance sheet of the monetary financial institutions sector (ECB/2013/33) (1). For the purposes of the definition of IF, ‘public’ shall encompass retail, professional and institutional investors
EUROPEAN LONG‐TERM INVESTMENT FUND OR ELTIF	European long‐term investment fund’ or ‘ELTIF
ALTERNATIVE INVESTMENT FUNDS OR AIFS	Collective investment undertakings, including investment compartments thereof, which: (i) raise capital from a number of investors, with a view to investing it in accordance with a defined investment policy for the benefit of those investors; and (ii) do not require authorisation pursuant to Article 5 of Directive 2009/65/EC
INSTITUTION FOR OCCUPATIONAL RETIREMENT PROVISION OR IORP	An institution for occupational retirement provision authorised or registered in accordance with Article 9 of Directive (EU) 2016/2341 except an institution in respect of which a Member State has chosen to apply Article 5 of that Directive or an institution that operates pension schemes which together have less than 15 members in total
FUNDS	Banknotes and coins, scriptural money or electronic money as defined in point (2) of Article 2 of Directive 2009/110/EC
DEFAULT FUNDS	A fund established by a CCP in accordance with Article 42 of Regulation (EU) No 648/2012 and used in accordance with Article 45 of that Regulation
OWN FUNDS	The sum of Tier 1 capital and Tier 2 capital
OWN FUNDS	Own funds as referred to in Articles 56 to 67 of Directive 2006/48/EC
BASIC OWN FUNDS	Basic own funds within the meaning of Article 88 of Directive 2009/138/EC
FUNDS FOR GENERAL BANKING RISK	It has the same meaning as under Article 38 of Directive 86/635/EEC
DEMATERIALISED FORM	The fact that financial instruments exist only as book entry records
DOMESTIC MERGER	A merger between UCITS established in the same Member State where at least one of the involved UCITS has been notified pursuant to Article 93 of Directive 2009/65/EC
CROSS-BORDER MERGER	A merger of UCITS: (i) at least two of which are established in different Member States; or (ii) established in the same Member State into a newly constituted UCITS established in another Member State
MERGERS	An operation whereby: (i) one or more UCITS or investment compartments thereof, the ‘merging UCITS’, on being dissolved without going into liquidation, transfer all of their assets and liabilities to another existing UCITS or an investment compartment thereof, the ‘receiving UCITS’, in exchange for the issue to their unit-holders of units of the receiving UCITS and, if applicable, a cash payment not exceeding 10 % of the net asset value of those units; (ii) two or more UCITS or investment compartments thereof, the ‘merging UCITS’, on being dissolved without going into liquidation, transfer all of their assets and liabilities to a UCITS which they form or an investment compartment thereof, the ‘receiving UCITS’, in exchange for the issue to their unit-holders of units of the receiving UCITS and, if applicable, a cash payment not exceeding 10 % of the net asset value of those units; (iii) one or more UCITS or investment compartments thereof, the ‘merging UCITS’, which continue to exist until the liabilities have been discharged, transfer their net assets to another investment compartment of the same UCITS, to a UCITS which they form or to another existing UCITS or an investment compartment thereof, the ‘receiving UCITS’
RETAINED EARNINGS	Profits and losses brought forward as a result of the final application of profit or loss under the applicable accounting framework
COLLATERAL SECURITY	All realisable assets provided under a pledge (including money provided under a pledge), a repurchase or similar agreement, or otherwise, for the purpose of securing rights and obligations potentially arising in connection with a system, or provided to central banks of the Member States or to the future European central bank.
EQUIVALENT COLLATERAL	(i) in relation to cash, a payment of the same amount and in the same currency; (ii) in relation to financial instruments, financial instruments of the same issuer or debtor, forming part of the same issue or class and of the same nominal amount, currency and description or, where a financial collateral arrangement provides for the transfer of other assets following the occurrence of any event relating to or affecting any financial instruments provided as financial collateral, those other assets;
BOOK ENTRY SECURITIES COLLATERAL	Financial collateral provided under a financial collateral arrangement which consists of financial instruments, title to which is evidenced by entries in a register or account maintained by or on behalf of an intermediary;
PORTFOLIO MANAGEMENT	Managing portfolios in accordance with mandates given by clients on a discretionary client-by-client basis where such portfolios include one or more financial instruments.
PORTFOLIO MANAGEMENT	Managing portfolios in accordance with mandates given by clients on a discretionary client-by-client basis where such portfolios include one or more financial instruments
MANAGING AIFs	Performing at least investment management functions referred to in point 1(a) or (b) of Annex I of Directiva 2011/61/EU for one or more AIFs
EUVECA MANAGER	A manager of a qualifying venture capital fund as defined in point (c) of the first paragraph of Article 3 of Regulation (EU) No 345/2013 and registered in accordance with Article 14 of that Regulation
MANAGER OF A QUALIFYING VENTURE CAPITAL FUND	A legal person the regular business of which is managing at least one qualifying venture capital fund
ALTERNATIVE INVESTMENT FUND MANAGER OR AIFM	Legal persons whose regular business is managing one or more AIFs
MANAGER OF THE ELTIF	the authorised EU AIFM approved to manage an ELTIF, or the internally managed ELTIF where the legal form of the ELTIF permits internal management and where no external AIFM has been appointed
NON-EU AIFM	An AIFM which is not an EU AIFM
EU AIFM	An AIFM which has its registered office in a Member State
GROUP	A group of undertakings which are linked to each other by a relationship referred to in Article 22(1), (2) or (7) of Directive 2013/34/EU or undertakings as defined in Articles 4, 5, 6 and 7 of Commission Delegated Regulation (EU) No 241/2014 , which are linked to each other by a relationship referred to in Article 10(1) or in Article 113(6) or (7) of Regulation (EU) No 575/2013
GROUP OF CONNECTED CLIENTS	Any of the following: (a) two or more natural or legal persons who, unless it is shown otherwise, constitute a single risk because one of them, directly or indirectly, has control over the other or others; (b) two or more natural or legal persons between whom there is no relationship of control as described in point (a) but who are to be regarded as constituting a single risk because they are so interconnected that, if one of them were to experience financial problems, in particular funding or repayment difficulties, the other or all of the others would also be likely to encounter funding or repayment difficulties
UNIQUE IDENTIFIER	A combination of letters, numbers or symbols specified to the payment service user by the payment service provider and to be provided by the payment service user to identify unambiguously another payment service user and/or the payment account of that other payment service user for a payment transaction;
DEFAULT	In relation to a participant, a situation where insolvency proceedings, as defined in point (j) of Article 2 of Directive 98/26/EC, are opened against a participant
SYNTHETIC RISK AND REWARD INDICATORS	Synthetic indicators within the meaning of Article 8 of Commission Regulation (EU) No 583/2010 of 1 July 2010 implementing Directive 2009/65/EC of the European Parliament and of the Council as regards key investor information and conditions to be met when providing key investor information or the prospectus in a durable medium other than paper or by of a website
INDEX	Any figure: (a) that is published or made available to the public; (b)that is regularly determined: (i) entirely or partially by the application of a formula or any other method of calculation, or by an assessment; and (ii) on the basis of the value of one or more underlying assets or prices, including estimated prices, actual or estimated interest rates, quotes and committed quotes, or other values or surveys;
BENCHMARK	Any rate, index or figure, made available to the public or published that is periodically or regularly determined by the application of a formula to, or on the basis of the value of one or more underlying assets or prices, including estimated prices, actual or estimated interest rates or other values, or surveys, and by reference to which the amount payable under a financial instrument or the value of a financial instrument is determined
BENCHMARK	Any index by reference to which the amount payable under a financial instrument or a financial contract, or the value of a financial instrument, is determined, or an index that is used to measure the performance of an investment fund with the purpose of tracking the return of such index or of defining the asset allocation of a portfolio or of computing the performance fees;
CRITICAL BENCHMARK	A benchmark other than a regulated-data benchmark that fulfils any of the conditions laid down in Article 20(1) of Regulation UE 2016/1011 and which is on the list established by the Commission pursuant to that Article;
REGULATED-DATA BENCHMARK	A benchmark determined by the application of a formula from: (a)input data contributed entirely and directly from: (i)a trading venue as defined in point (24) of Article 4(1) of Directive 2014/65/EU or a trading venue in a third country for which the Commission has adopted an implementing decision that the legal and supervisory framework of that country is considered to have equivalent effect within the meaning of Article 28(4) of Regulation (EU) No 600/2014 of the European Parliament and of the Council, or a regulated market considered to be equivalent under Article 2a of Regulation (EU) No 648/2012, but in each case only with reference to transaction data concerning financial instruments; (ii)an approved publication arrangement as defined in point (52) of Article 4(1) of Directive 2014/65/EU or a consolidated tape provider as defined in point (53) of Article 4(1) of Directive 2014/65/EU, in accordance with mandatory post-trade transparency requirements, but only with reference to transaction data concerning financial instruments that are traded on a trading venue; (iii)an approved reporting mechanism as defined in point (54) of Article 4(1) of Directive 2014/65/EU, but only with reference to transaction data concerning financial instruments that are traded on a trading venue and that must be disclosed in accordance with mandatory post-trade transparency requirements; (iv)an electricity exchange as referred to in point (j) of Article 37(1) of Directive 2009/72/EC of the European Parliament and of the Council (23); (v)a natural gas exchange as referred to in point (j) of Article 41(1) of Directive 2009/73/EC of the European Parliament and of the Council (24); (vi)an auction platform referred to in Article 26 or 30 of Commission Regulation (EU) No 1031/2010 (25); (vii)a service provider to which the benchmark administrator has outsourced the data collection in accordance with Article 10, provided that the service provider receives the data entirely and directly from an entity referred to in points (i) to (vi); (b)net asset values of investment funds;
COMMODITY BENCHMARK	A benchmark where the underlying asset for the purposes of point (1)(b)(ii) of this paragraph is a commodity within the meaning of point (1) of Article 2 of Commission Regulation (EC) No 1287/2006 (21), excluding emission allowances as referred to in point (11) of Section C of Annex I to Directive 2014/65/EU
INTEREST RATE BENCHMARK	A benchmark which for the purposes of index defintion is determined on the basis of the rate at which banks may lend to, or borrow from, other banks, or agents other than banks, in the money market;
NON-SIGNIFICANT BENCHMARK	A benchmark that does not fulfil the conditions laid down in Articles 20(1) and 24(1) of Regulation (EU) 2016/1011
SIGNIFICANT BENCHMARK	A benchmark that fulfils the conditions laid down in Article 24(1) of Regulation (EU) 2016/1011
AUDIT REPORT	The report referred to in Article 51a of Directive 78/660/EEC and Article 37 of Directive 83/349/EEC issued by the statutory auditor or audit firm;
IMMOBILISATION	The act of concentrating the location of physical securities in a CSD in a way that enables subsequent transfers to be made by book entry
MONETARY FINANCIAL INSTITUTION (MFI)	A resident undertaking that belongs to any of the following sectors: 1. central banks; and 2. other MFIs, which comprise (a) deposit-taking corporations: (i) credit institutions as defined in Article 4(1)(1) of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms, and (ii) deposit-taking corporations other than credit institutions which are: — other financial institutions which are principally engaged in financial intermediation and whose business is to receive deposits and/or close substitutes for deposits from institutional units, not only from MFIs (the degree of substitutability between the instruments issued by other MFIs and the deposits placed with credit institutions shall determine their classification as MFIs); and for their own account, at least in economic terms, to grant loans and/or make investments in securities, or — electronic money institutions that are principally engaged in financial intermediation in the form of issuing electronic money; or (b) money market funds (MMFs) pursuant to Article 2 of Regulation (EU) No 1071/2013
CASH ASSIMILATED INSTRUMENT	A certificate of deposit, a bond, including a covered bond, or any other non-subordinated instrument, which has been issued by an institution, for which the institution has already received full payment and which shall be unconditionally reimbursed by the institution at its nominal value
OWN FUNDS INSTRUMENTS	Capital instruments issued by the institution that qualify as Common Equity Tier 1, Additional Tier 1 or Tier 2 instruments;
PAYMENT INSTRUMENT	An investment firm which, on an organised, frequent systematic and substantial basis, deals on own account when executing client orders outside a regulated market, an MTF or an OTF without operating a multilateral system
FINANCIAL INSTRUMENT	(1)Transferable securities; (2)Money-market instruments; (3)Units in collective investment undertakings; (4)Options, futures, swaps, forward rate agreements and any other derivative contracts relating to securities, currencies, interest rates or yields, emission allowances or other derivatives instruments, financial indices or financial measures which may be settled physically or in cash; (5)Options, futures, swaps, forwards and any other derivative contracts relating to commodities that must be settled in cash or may be settled in cash at the option of one of the parties other than by reason of default or other termination event; (6)Options, futures, swaps, and any other derivative contract relating to commodities that can be physically settled provided that they are traded on a regulated market, a MTF, or an OTF, except for wholesale energy products traded on an OTF that must be physically settled; (7)Options, futures, swaps, forwards and any other derivative contracts relating to commodities, that can be physically settled not otherwise mentioned in point 6 of this Section and not being for commercial purposes, which have the characteristics of other derivative financial instruments; (8)Derivative instruments for the transfer of credit risk; (9)Financial contracts for differences; (10)Options, futures, swaps, forward rate agreements and any other derivative contracts relating to climatic variables, freight rates or inflation rates or other official economic statistics that must be settled in cash or may be settled in cash at the option of one of the parties other than by reason of default or other termination event, as well as any other derivative contracts relating to assets, rights, obligations, indices and measures not otherwise mentioned in this Section, which have the characteristics of other derivative financial instruments, having regard to whether, inter alia, they are traded on a regulated market, OTF, or an MTF; (11) Emission allowances consisting of any units recognised for compliance with the requirements of Directive 2003/87/EC (Emissions Trading Scheme).
MONEY MARKET INSTRUMENTS	Instruments normally dealt in on the money market which are liquid and have a value which can be accurately determined at any time, and instruments as referred to in Article 3 of Commission Directive 2007/16/EC
FINANCIAL INSTRUMENTS	Shares in companies and other securities equivalent to shares in companies and bonds and other forms of debt instruments if these are negotiable on the capital market, and any other securities which are normally dealt in and which give the right to acquire any such shares, bonds or other securities by subscription, purchase or exchange or which give rise to a cash settlement (excluding instruments of payment), including units in collective investment undertakings, money market instruments and claims relating to or rights in or in respect of any of the foregoing;
MINORITY INTEREST	The amount of Common Equity Tier 1 capital of a subsidiary of an institution that is attributable to natural or legal persons other than those included in the prudential scope of consolidation of the institution
INSURANCE INTERMEDIARY	Any natural or legal person, other than an insurance or reinsurance undertaking or their employees and other than an ancillary insurance intermediary, who, for remuneration, takes up or pursues the activity of insurance distribution
PRIME BROKER	A credit institution, a regulated investment firm or another entity subject to prudential regulation and ongoing supervision, offering services to professional investors primarily to finance or execute transactions in financial instruments as counterparty and which may also provide other services such as clearing and settlement of trades, custodial services, securities lending, customised technology and operational support facilities
SETTLEMENT INTERNALISER	Any institution, including one authorised in accordance with Directive 2013/36/EU or with Directive 2014/65/EU, which executes transfer orders on behalf of clients or on its own account other than through a securities settlement system
QUALIFYING INVESTMENT	Any of the following instruments: (i) equity or quasi-equity instruments that are issued by: — a qualifying portfolio undertaking and acquired directly by the qualifying social entrepreneurship fund from the qualifying portfolio undertaking, — a qualifying portfolio undertaking in exchange for an equity security issued by the qualifying portfolio undertaking, or — an undertaking of which the qualifying portfolio undertaking is a majority-owned subsidiary and which is acquired by the qualifying social entrepreneurship fund in exchange for an equity instrument issued by the qualifying portfolio undertaking; (ii) securitised and un-securitised debt instruments, issued by a qualifying portfolio undertaking; (iii) units or shares of one or several other qualifying social entrepreneurship funds, provided that those qualifying social entrepreneurship funds have not themselves invested more than 10 % of their aggregate capital contributions and uncalled committed capital in qualifying social entrepreneurship funds; (iv) secured or unsecured loans granted by the qualifying social entrepreneurship fund to a qualifying portfolio undertaking; (v) any other type of participation in a qualifying portfolio undertaking
SUSTAINABLE INVESTMENT	An investment in an economic activity that contributes to an environmental objective, as measured, for example, by key resource efficiency indicators on the use of energy, renewable energy, raw materials, water and land, on the production of waste, and greenhouse gas emissions, or on its impact on biodiversity and the circular economy, or an investment in an economic activity that contributes to a social objective, in particular an investment that contributes to tackling inequality or that fosters social cohesion, social integration and labour relations, or an investment in human capital or economically or socially disadvantaged communities, provided that such investments do not significantly harm any of those objectives and that the investee companies follow good governance practices, in particular with respect to sound management structures, employee relations, remuneration of staff and tax compliance
RETAIL INVESTOR	An investor who is not a professional investor
RETAIL INVESTOR	An investor who is not a professional investor
PROFESSIONAL INVESTOR	An investor which is considered to be a professional client or may, on request, be treated as a professional client within the meaning of Annex II to Directive 2004/39/EC
SETTLEMENT	The completion of a securities transaction where it is concluded with the aim of discharging the obligations of the parties to that transaction through the transfer of cash or securities, or both
PAYMENT BRAND	Any material or digital name, term, sign, symbol or combination of them, capable of denoting under which payment card scheme card-based payment transactions are carried out;
APPLICABLE ACCOUNTING FRAMEWORK	The accounting standards to which the institution is subject under Regulation (EC) No 1606/2002 or Directive 86/635/EEC
COMMODITY	Any goods of a fungible nature that are capable of being delivered, including metals and their ores and alloys, agricultural products, and energy such as electricity
REORGANISATION MEASURES	Measures which involve any intervention by administrative or judicial authorities which are intended to preserve or restore the financial situation and which affect pre-existing rights of third parties, including but not limited to measures involving a suspension of payments, suspension of enforcement measures or reduction of claims;
MEANS OF DISTANCE COMMUNICATION	A method which, without the simultaneous physical presence of the payment service provider and the payment service user, may be used for the conclusion of a payment services contract
CREDIT ENHACEMENT	A contractual arrangement whereby the credit quality of a position in a securitisation is improved in relation to what it would have been if the enhancement had not been provided, including the enhancement provided by more junior tranches in the securitisation and other types of credit protection
SME GROWTH MARKET	A MTF that is registered as an SME growth market in accordance with Article 33 of MiFID II
RECOGNISED EXCHANGE	An exchange which meets all of the following conditions: (a)it is a regulated market or a third-country market that is considered to be equivalent to a regulated market in accordance with the procedure set out in point (a) of Article 25(4) of Directive 2014/65/EU of the European Parliament and of the Council ;(b)it has a clearing mechanism whereby contracts listed in Annex II of Regulation (EU) 575/2013 are subject to daily margin requirements which, in the opinion of the competent authorities, provide appropriate protection;
REGULATED MARKET	A multilateral system operated and/or managed by a market operator, which brings together or facilitates the bringing together of multiple third-party buying and selling interests in financial instruments – in the system and in accordance with its non-discretionary rules – in a way that results in a contract, in respect of the financial instruments admitted to trading under its rules and/or systems, and which is authorised and functions regularly and in accordance with the provisions of Title III of MiFID II
MICROENTERPRISE	An enterprise, which at the time of conclusion of the payment service contract, is an enterprise as defined in Article 1 and Article 2(1) and (3) of the Annex to Recommendation 2003/361/EC
INTERNATIONAL AUDITING STANDARDS	International Standards on Auditing (ISA) and related Statements and Standards, insofar as relevant to the statutory audit;
INTERNATIONAL ACCOUNTING STANDARDS	International Accounting Standards (IAS), International Financial Reporting Standards (IFRS) and related Interpretations (SIC-IFRIC interpretations), subsequent amendments to those standards and related interpretations, future standards and related interpretations issued or adopted by the International Accounting Standards Board (IASB).
REFERENCE OBLIGATION	An obligation used for the purposes of determining the cash settlement value of a credit derivative
RELEVANT FINANCIAL OBLIGATIONS	The obligations which are secured by a financial collateral arrangement and which give a right to cash settlement and/or delivery of financial instruments. Relevant financial obligations may consist of or include: (i) present or future, actual or contingent or prospective obligations (including such obligations arising under a master agreement or similar arrangement); (ii) obligations owed to the collateral taker by a person other than the collateral provider; or (iii) obligations of a specified class or kind arising from time to time;
REPURCHASE TRANSACTION	Any transaction governed by a repurchase agreement or a reverse repurchase agreement
SECURITIES FINANCING TRANSACTION OR SFT	(a) a repurchase transaction; (b) securities or commodities lending and securities or commodities borrowing; (c) a buy-sell back transaction or sell-buy back transaction; (d) a margin lending transaction;
PAYMENT TRANSACTION	An act, initiated by the payer or on his behalf or by the payee, of placing, transferring or withdrawing funds, irrespective of any underlying obligations between the payer and the payee
MARGIN LENDING TRANSACTION	A transaction in which a counterparty extends credit in connection with the purchase, sale, carrying or trading of securities, but not including other loans that are secured by collateral in the form of securities
REPURCHASE TRANSACTION	A transaction governed by an agreement by which a counterparty transfers securities, commodities, or guaranteed rights relating to title to securities or commodities where that guarantee is issued by a recognised exchange which holds the rights to the securities or commodities and the agreement does not allow a counterparty to transfer or pledge a particular security or commodity to more than one counterparty at a time, subject to a commitment to repurchase them, or substituted securities or commodities of the same description at a specified price on a future date specified, or to be specified, by the transferor, being a repurchase agreement for the counterparty selling the securities or commodities and a reverse repurchase agreement for the counterparty buying them;
REMOTE PAYMENT TRANSACTION	A payment transaction initiated via internet or through a device that can be used for distance communication
BUY-SELL BACK TRANSACTION	A transaction by which a counterparty buys or sells securities, commodities, or guaranteed rights relating to title to securities or commodities, agreeing, respectively, to sell or to buy back securities, commodities or such guaranteed rights of the same description at a specified price on a future date, that transaction being a buy-sell back transaction for the counterparty buying the securities, commodities or guaranteed rights, and a sell-buy back transaction for the counterparty selling them, such buy-sell back transaction or sell-buy back transaction not being governed by a repurchase agreement or by a reverse-repurchase agreement
PAYMENT ORDER	An instruction by a payer or payee to its payment service provider requesting the execution of a payment transaction
TRANSFER ORDER	—any instruction by a participant to place at the disposal of a recipient an amount of money by of a book entry on the accounts of a credit institution, a central bank or a settlement agent, or any instruction which results in the assumption or discharge of a payment obligation as defined by the rules of the system, or —an instruction by a participant to transfer the title to, or interest in, a security or securities by of a book entry on a register, or otherwise;
PAYER	A natural or legal person who holds a payment account and allows a payment order from that payment account, or, where there is no payment account, a natural or legal person who gives a payment order
COLLECTIVE INVESTMENT UNDERTAKING “CIU”	A UCITS as defined in Article 1(2) of Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS), including, unless otherwise provided, third-country entities which carry out similar activities, which are subject to supervision pursuant to Union law or to the law of a third country which applies supervisory and regulatory requirements at least equivalent to those applied in the Union, an AIF as defined in Article 4(1)(a) of Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers, or a non-EU AIF as defined in Article 4(1)(aa) of that Directive;
UNDERTAKING FOR COLLECTIVE INVESTMENT IN TRANSFERABLE SECURITIES OR UCITS	An undertaking authorised in accordance with Article 5 of Directive 2009/65/EC
MANAGEMENT BODY	The body or bodies of a CSD, appointed in accordance with national law, which is empowered to set the CSD’s strategy, objectives and overall direction, and which oversees and monitors management decision-making and includes persons who effectively direct the business of the CSD. Where, according to national law, a management body comprises different bodies with specific functions, the requirements of Regulation 909/2014 shall apply only to members of the management body to whom the applicable national law assigns the respective responsibility
MANAGEMENT BODY	The body or bodies of an administrator or another supervised entity which are appointed in accordance with national law, which are empowered to set the strategy, objectives and overall direction of the administrator or other supervised entity, and which oversee and monitor management decision-making and include persons who effectively direct the business of the administrator or other supervised entity
ORIGINATOR	An entity which: (a) itself or through related entities, directly or indirectly, was involved in the original agreement which created the obligations or potential obligations of the debtor or potential debtor giving rise to the exposures being securitised; or (b)purchases a third party’s exposures on its own account and then securitises them;
OTHER RESERVES	Reserves within the meaning of the applicable accounting framework that are required to be disclosed under the applicable accounting standard, excluding any amounts already included in accumulated other comprehensive income or retained earnings;
ACCUMULATED OTHER COMPREHENSIVE INCOME	It has the same meaning as under International Accounting Standard (IAS) 1, as applicable under Regulation (EC) No 1606/2002
OTHER CAPITAL INSTRUMENTS	Capital instruments issued by financial sector entities that do not qualify as Common Equity Tier 1, Additional Tier 1 or Tier 2 instruments or Tier 1 own-fund insurance items, additional Tier 1 own-fund insurance items, Tier 2 own-fund insurance items or Tier 3 own-fund insurance items;
OFI	Other financial intermediaries except insurance corporations and pension funds, as defined in ESA 2010 (sub-sector S.125)
SIMPLE REPURCHASE AGREEMENT	A repurchase transaction of a single asset, or of similar, non-complex assets, as opposed to a basket of assets
REPURCHASE AGREEMENT AND REVERSE REPURCHASE AGREEMENT	Any agreement in which an institution or its counterparty transfers securities or commodities or guaranteed rights relating to title to securities or commodities where that guarantee is issued by a recognised exchange which holds the rights to the securities or commodities and the agreement does not allow an institution to transfer or pledge a particular security or commodity to more than one counterparty at one time, subject to a commitment to repurchase them, or substituted securities or commodities of the same description at a specified price on a future date specified, or to be specified, by the transferor, being a repurchase agreement for the institution selling the securities or commodities and a reverse repurchase agreement for the institution buying them;
PARTICIPATION	Rights in the capital of other undertakings, whether or not represented by certificates, which, by creating a durable link with those undertakings, are intended to contribute to the activities of the undertaking which holds those rights. The holding of part of the capital of another undertaking is presumed to constitute a participating interest where it exceeds a percentage threshold fixed by the Member States which is lower than or equal to 20 %, or the ownership, direct or indirect, of 20 % or more of the voting rights or capital of an undertaking
QUALIFYING HOLDING	A direct or indirect holding in an investment firm which represents 10 % or more of the capital or of the voting rights, as set out in Articles 9 and 10 of Directive 2004/109/EC of the European Parliament and of the Council, taking into account the conditions regarding aggregation thereof laid down in Article 12(4) and (5) of that Directive, or which makes it possible to exercise a significant influence over the management of the investment firm in which that holding subsists
CARRIED INTEREST	A share in the profits of the AIF accrued to the AIFM as compensation for the management of the AIF and excluding any share in the profits of the AIF accrued to the AIFM as a return on any investment by the AIFM into the AIF
IF BEARER SHARES/UNITS	IF shares/units in respect of which, in accordance with national legislation, a record is not kept identifying the holders of its shares/units, or in respect of which a record is kept which does not contain information on the residency and sector of the holder
UNITS IN COLLECTIVE INVESTMENT UNDERTAKINGS	Units in collective investment undertakings as referred to in point (3) of Section C of Annex I to Directive 2014/65/EU
IF REGISTERED SHARES/UNITS	IF shares/units in respect of which, in accordance with national legislation, a record is kept identifying the holders of its shares/units, including information on the residency and sector of the holder
PARTICIPANT	An institution, a central counterparty, a settlement agent or a clearing house.
FINANCIAL MARKET PARTICIPANT	(a) an insurance undertaking which makes available an insurance‐based investment product (IBIP); (b) an investment firm which provides portfolio management; (c) an institution for occupational retirement provision (IORP); (d) a manufacturer of a pension product; (e) an alternative investment fund manager (AIFM); (f) a pan‐European personal pension product (PEPP) provider; (g) a manager of a qualifying venture capital fund registered in accordance with Article 14 of Regulation (EU) No 345/2013; (h) a manager of a qualifying social entrepreneurship fund registered in accordance with Article 15 of Regulation (EU) No 346/2013; (i) a management company of an undertaking for collective investment in transferable securities (UCITS management company); or (j) a credit institution which provides portfolio managemen
INDIRECT PARTICIPANT	A credit institution as defined in the first indent of (b) with a contractual relationship with an institution participating in a system executing transfer orders as defined in the first indent of (i) which enables the abovementioned credit institution to pass transfer orders through the system;
PARTICIPANTS	Any participant which is an institution, a central counterparty, a settlement agent or a clearing house.
UNIT-HOLDER	Any natural or legal person holding one or more units in a UCITS
DISTRIBUTABLE ITEMS	The amount of the profits at the end of the last financial year plus any profits brought forward and reserves available for that purpose, before distributions to holders of own funds instruments, less any losses brought forward, any profits which are non-distributable pursuant to Union or national law or the institution’s by-laws and any sums placed in non-distributable reserves in accordance with national law or the statutes of the institution, in each case with respect to the specific category of own funds instruments to which Union or national law, institutions’ by-laws, or statutes relate; such profits, losses and reserves being determined on the basis of the individual accounts of the institution and not on the basis of the consolidated accounts
DEFERRED TAX LIABILITIES	It has the same meaning as under the applicable accounting framework;
CAPITAL	Aggregate capital contributions and uncalled committed capital, calculated on the basis of amounts investible after deduction of all fees, charges and expenses that are directly or indirectly borne by investors
SPONSOR	An institution other than an originator institution that establishes and manages an asset-backed commercial paper programme or other securitisation scheme that purchases exposures from third-party entities
LOSS GIVEN DEFAULT OR LGD	The ratio of the loss on an exposure due to the default of a counterparty to the amount outstanding at default
NON – PRACTITIONER	Any natural person who, for at least three years before his or her involvement in the governance of the public oversight system, has not carried out statutory audits, has not held voting rights in an audit firm, has not been a member of the administrative or management body of an audit firm and has not been employed by, or otherwise associated with, an audit firm;
RELEVANT PERSON	In relation to a management company, any of the following: (a)a director, partner or equivalent, or manager of the management company; (b)an employee of the management company, as well as any other natural person whose services are placed at the disposal and under the control of the management company and who is involved in the provision by the management company of collective portfolio management; (c)a natural person who is directly involved in the provision of services to the management company under a delegation arrangement to third parties for the purpose of the provision by the management company of collective portfolio management;
PENSION SCHEME	A contract, an agreement, a trust deed or rules stipulating which retirement benefits are granted and under which condition
SETTLEMENT PERIOD	The time period between the trade date and the intended settlement date
RE-SECURITISATION POSITION	An exposure to a re-securitisation
SECURITISATION POSITION	An exposure to a securitisation;
POSITIONS HELD WITH TRADING INTENT	(a) proprietary positions and positions arising from client servicing and market making; (b) positions intended to be resold short term; (c) positions intended to benefit from actual or expected short-term price differences between buying and selling prices or from other price or interest rate variations;
SECURITIES OR COMMODITIES LENDING OR SECURITIES OR COMMODITIES BORROWING	A transaction by which a counterparty transfers securities or commodities subject to a commitment that the borrower will return equivalent securities or commodities on a future date or when requested to do so by the transferor, that transaction being considered as securities or commodities lending for the counterparty transferring the securities or commodities and being considered as securities or commodities borrowing for the counterparty to which they are transferred;
SECURITIES LENDING AND SECURITIES BORROWING	Any transaction in which an institution or its counterparty transfers securities subject to a commitment that the borrower will return equivalent securities at some future date or when requested to do so by the transferor, that transaction being known as ‘securities lending’ for the institution transferring the securities and being known as ‘securities borrowing’ for the institution to which they are transferred
KEY AUDIT PARTNER	(a) the statutory auditor(s) designated by an audit firm for a particular audit engagement as being primarily responsible for carrying out the statutory audit on behalf of the audit firm; or (b)in the case of a group audit, at least the statutory auditor(s) designated by an audit firm as being primarily responsible for carrying out the statutory audit at the level of the group and the statutory auditor(s) designated as being primarily responsible at the level of material subsidiaries; or (c)the statutory auditor(s) who sign(s) the audit report.
PROBABILITY OF DEFAULT OR DP	The probability of default of a counterparty over a one-year period;
INSOLVENCY PROCEEDINGS	Any collective measure provided for in the law of a Member State, or a third country, either to wind up the participant or to reorganise it, where such measure involves the suspending of, or imposing limitations on, transfers or payments;
WINDING – UP PROCEEDINGS	Collective proceedings involving realisation of the assets and distribution of the proceeds among the creditors, shareholders or members as appropriate, which involve any intervention by administrative or judicial authorities, including where the collective proceedings are terminated by a composition or other analogous measure, whether or not they are founded on insolvency or are voluntary or compulsory;
INTERNATIONAL OPEN COMMUNICATION PROCEDURES AND STANDARDS	Internationally accepted standards for communication procedures, such as standardised messaging formats and data representation, which are available on a fair, open and non-discriminatory basis to any interested party
PENSION PRODUCT	(a)pension products which, under national law, are recognised as having the primary purpose of providing the investor with an income in retirement and which entitle the investor to certain benefits; (b)individual pension products for which a financial contribution from the employer is required by national law and where the employer or the employee has no choice as to the pension product or provider.
PAN‐EUROPEAN PERSONAL PENSION PRODUCT OR PEPP	A long-term savings personal pension product, which is provided by a financial undertaking eligible according to Article 6(1) OF Regulation (EU) 2019/1238 under a PEPP contract, and subscribed to by a PEPP saver, or by an independent PEPP savers association on behalf of its members, in view of retirement, and which has no or strictly limited possibility for early redemption and is registered in accordance with this Regulation
INSURANCE‐BASED INVESTMENT PRODUCT OR IBIP	(a) an insurance‐based investment product as defined in point (2) of Article 4 of Regulation (EU) No 1286/2014 of the European Parliament and of the Council ( 19); or (b) an insurance product which is made available to a professional investor and which offers a maturity or surrender value that is wholly or partially exposed, directly or indirectly, to market fluctuations
INDEX PROVIDER	A natural or legal person that has control over the provision of an index;
ACCOUNT INFORMATION SERVICE PROVIDER	Apayment service provider pursuing business activities as referred to in point (8) of Annex I of PSD2 Directive
PAYMENT INITIATION SERVICE PROVIDER	A payment service provider pursuing business activities as referred to in point (7) of Annex I of PSD2 Directive
PAYMENT SERVICE PROVIDER	A body referred to in Article 1(1) or a natural or legal person benefiting from an exemption pursuant to Article 32 or 33 of PSD2 Directive
ACCOUNT SERVICING PAYMENT SERVICE PROVIDER	A payment service provider providing and maintaining a payment account for a payer;
LOCATED	In relation to a legal person, the country where that person’s registered office or other official address is situated and, in relation to a natural person, the country where that person is resident for tax purposes
REBALANCING OF THE PORTFOLIO	A significant modification of the composition of the portfolio of a UCITS
NETWORK	The larger structure: —which is aimed at cooperation and to which a statutory auditor or an audit firm belongs, and —which is clearly aimed at profit- or cost-sharing or shares common ownership, control or management, common quality-control policies and procedures, a common business strategy, the use of a common brand-name or a significant part of professional resources;
ELECTRONIC COMMUNICATIONS NETWORK	Transmission systems and, where applicable, switching or routing equipment and other resources which permit the conveyance of signals by wire, by radio, by optical or by other electromagnetic means, including satellite networks, fixed (circuit- and packet-switched, including Internet) and mobile terrestrial networks, electricity cable systems, to the extent that they are used for the purpose of transmitting signals, networks used for radio and television broadcasting, and cable television networks, irrespective of the type of information conveyed;
CREDIT RISK MITIGATION	A technique used by an institution to reduce the credit risk associated with an exposure or exposures which that institution continues to hold
DATA TRAFFIC RECORD	Records of any data processed for the purpose of the conveyance of a communication on an electronic communications network or for the billing thereof
LEGAL REPRESENTATIVE	A natural person domiciled in the Union or a legal person with its registered office in the Union, and which, expressly designated by a non-EU AIFM, acts on behalf of such non-EU AIFM vis-à-vis the authorities, clients, bodies and counterparties to the non-EU AIFM in the Union with regard to the non-EU AIFM’s obligations under Directive 2011/61/EU
EMPLOYEES’ REPRESENTATIVES	Employees’ representatives as defined in point (e) of Article 2 of Directive 2002/14/EC
RESIDENT	Having a centre of economic interest in the economic territory of a country as described in Annex A of Regulation (EC) No 2533/98; in this context, ‘cross-border positions’ and ‘cross-border transactions’ shall mean respectively positions and transactions in the assets and/or liabilities of residents of participating Member States seen as one economic territory vis-a-vis residents of non-participating Member States and/or residents of third countries . For the purposes of Regulation (EU) No 1075/2013 if a legal entity lacks a physical dimension its residence shall be determined by the economic territory under whose laws the entity is incorporated. If the entity is not incorporated, legal domicile shall be used as a criterion, namely the country whose legal system governs the creation and continued existence of the entity
RE-SECURITISATION	Securitisation where the risk associated with an underlying pool of exposures is tranched and at least one of the underlying exposures is a securitisation position;
REUSE	The use by a receiving counterparty, in its own name and on its own account or on the account of another counterparty, including any natural person, of financial instruments received under a collateral arrangement, such use comprising transfer of title or exercise of a right of use in accordance with Article 5 of Directive 2002/47/EC but not including the liquidation of a financial instrument in the event of default of the providing counterparty
RISK OF EXCESSIVE LEVERAGE	The risk resulting from an institution’s vulnerability due to leverage or contingent leverage that may require unintended corrective measures to its business plan, including distressed selling of assets which might result in losses or in valuation adjustments to its remaining assets
COUNTERPARTY RISK	The risk of loss for the UCITS resulting from the fact that the counterparty to a transaction may default on its obligations prior to the final settlement of the transaction’s cash flow
DILUATION RISK	The risk that an amount receivable is reduced through cash or non-cash credits to the obligor
LIQUIDITY RISK	The risk that a position in the UCITS portfolio cannot be sold, liquidated or closed at limited cost in an adequately short time frame and that the ability of the UCITS to comply at any time with Article 84(1) of Directive 2009/65/EC is thereby compromised
MARKET RISK	The risk of loss for the UCITS resulting from fluctuation in the market value of positions in the UCITS’ portfolio attributable to changes in market variables, such as interest rates, foreign exchange rates, equity and commodity prices or an issuer’s credit worthiness
MODEL RISK	The potential loss an institution may incur, as a consequence of decisions that could be principally based on the output of internal models, due to errors in the development, implementation or use of such models
SUSTAINABILITY RISK	An environmental, social or governance event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of the investment
OPERATIONAL RISK	The risk of loss for the UCITS resulting from inadequate internal processes and failures in relation to people and systems of the management company or from external events, and includes legal and documentation risk and risk resulting from the trading, settlement and valuation procedures operated on behalf of the UCITS
SYSTEMIC RISK	A risk of disruption in the financial system with the potential to have serious negative consequences for the financial system and the real economy
MONEY REMITTANCE	A payment service where funds are received from a payer, without any payment accounts being created in the name of the payer or the payee, for the sole purpose of transferring a corresponding amount to a payee or to another payment service provider acting on behalf of the payee, and/or where such funds are received on behalf of and made available to the payee
ACCOUNT INFORMATION SERVICE	An online service to provide consolidated information on one or more payment accounts held by the payment service user with either another payment service provider or with more than one payment service provider
PAYMENT INITIATION SERVICE	A service to initiate a payment order at the request of the payment service user with respect to a payment account held at another payment service provider
PAYMENT SERVICE	Any business activity set out in Annex I of PSD2 directive
SYSTEM	A formal arrangement: —between three or more participants, without counting a possible settlement agent, a possible central counterparty, a possible clearing house or a possible indirect participant, with common rules and standardised arrangements for the execution of transfer orders between the participants —governed by the law of a Member State chosen by the participants; the participants may, however, only choose the law of a Member State in which at least one of them has its head office, and —designated, without prejudice to other more stringent conditions of general application laid down by national law, as a system and notified to the Commission by the Member State whose law is applicable, after that Member State is satisfied as to the adequacy of the rules of the system.
MULTILATERAL TRADING FACILITY (MTF)	A multilateral system, operated by an investment firm or a market operator, which brings together multiple third-party buying and selling interests in financial instruments – in the system and in accordance with non-discretionary rules – in a way that results in a contract in accordance with Title II of MiFID II Directive;
CROSS-GUARANTEE SCHEME	A scheme that meets all the following conditions: (a) the institutions fall within the same institutional protection scheme as referred to in Article 113(7) of Regulation 575/2013 or are permanently affiliated with a network to a central body; (b) the institutions are fully consolidated in accordance with Article 1(1)(b), (c) or (d) or Article 1(2) of Directive 83/349/EEC and are included in the supervision on a consolidated basis of an institution which is a parent institution in a Member State in accordance with Part One, Title II, Chapter 2 of Regulation 575/2013 and subject to own funds requirements; (c) the parent institution in a Member State and the subsidiaries are established in the same Member State and are subject to authorisation and supervision by the same competent authority; (d)the parent institution in a Member State and the subsidiaries have entered into a contractual or statutory liability arrangement which protects those institutions and in particular ensures their liquidity and solvency, in order to avoid bankruptcy in the case that it becomes necessary; (e)arrangements are in place to ensure the prompt provision of financial in terms of capital and liquidity if required under the contractual or statutory liability arrangement referred to in point (d); (f) the adequacy of the arrangements referred to in points (d) and (e) is monitored on a regular basis by the competent authority; (g) the minimum period of notice for a voluntary exit of a subsidiary from the liability arrangement is 10 years; (h) the competent authority is empowered to prohibit a voluntary exit of a subsidiary from the liability arrangement
SECURITIES SETTLEMENT SYSTEM	A system under the first, second and third indents of point (a) of Article 2 of Directive 98/26/EC that is not operated by a central counterparty whose activity consists of the execution of transfer orders
PAYMENT SYSTEM	A funds transfer system with formal and standardised arrangements and common rules for the processing, clearing and/or settlement of payment transactions
CONSOLIDATED SITUATION	The situation that results from applying the requirements of Regulation 2019/2033 in accordance with Article 7 to a Union parent investment firm, Union parent investment holding company or Union parent mixed financial holding company as if that undertaking formed, together with all the investment firms, financial institutions, ancillary services undertakings and tied agents in the investment firm group, a single investment firm; for the purpose of this definition, the terms ‘investment firm’, ‘financial institution’, ‘ancillary services undertaking’ and ‘tied agent’ shall also apply to undertakings established in third countries, which, were they established in the Union, would fulfil the definitions of those terms
AUDIT FIRM	A legal person or any other entity, regardless of its legal form, that is approved in accordance with Directive 2006/43/EC by the competent authorities of a Member State to carry out statutory audits;
HOLDING COMPANY	A company with shareholdings in one or more other companies, the commercial purpose of which is to carry out a business strategy or strategies through its subsidiaries, associated companies or participations in order to contribute to their long-term value, and which is either a company: (i)operating on its own account and whose shares are admitted to trading on a regulated market in the Union; or (ii)not established for the main purpose of generating returns for its investors by of divestment of its subsidiaries or associated companies, as evidenced in its annual report or other official documents;
MANAGEMENT COMPANY	A company, the regular business of which is the management of UCITS in the form of common funds or of investment companies (collective portfolio management of UCITS)
ASSET MANAGEMENT COMPANY	Any company, the regular business of which is the management of UCITS in the form of unit trusts/common funds and/or of investment companies (collective portfolio management of UCITS) and an AIFM , including, unless otherwise provided, third country entities, that carry out similar activities, that are subject to the laws of a third country which applies supervisory and regulatory requirements at least equivalent to those applied in the Union
UCITS MANAGEMENT COMPANY	(a) a company, the regular business of which is the management of UCITS in the form of common funds or of investment companies (collective portfolio management of UCITS); or (b) an investment company authorised in accordance with Directive 2009/65/EC which has not designated a management company authorised under that Directive for its management
FINANCIAL HOLDING COMPANY	A financial institution, the subsidiaries of which are exclusively or mainly institutions or financial institutions, at least one of such subsidiaries being an institution, and which is not a mixed financial holding company
EU PARENT FINANCIAL HOLDING COMAPNY	A parent financial holding company in a Member State which is not a subsidiary of an institution authorised in any Member State or of another financial holding company or mixed financial holding company set up in any Member State;
PARENT FINANCIAL HOLDING COMPANY IN A MEMBER STATE	A financial holding company which is not itself a subsidiary of an institution authorised in the same Member State, or of a financial holding company or mixed financial holding company set up in the same Member State
MIXED FINANCIAL HOLDING COMPANY	A parent undertaking, other than a regulated entity, which together with its subsidiaries, at least one of which is a regulated entity which has its head office in the Community, and other entities, constitutes a financial conglomerate
EU PARENT MIXED FINANCIAL HOLDING COMPANY	A parent mixed financial holding company in a Member State which is not a subsidiary of an institution authorised in any Member State or of another financial holding company or mixed financial holding company set up in any Member State
PARENT MIXED FINANCIAL HOLDING COMPANY IN A MEMBER STATE	A mixed financial holding company which is not itself a subsidiary of an institution authorised in the same Member State, or of a financial holding company or mixed financial holding company set up in that same Member State
MIXED ACTIVITY HOLDING COMPANY	A parent undertaking, other than a financial holding company or an institution or a mixed financial holding company, the subsidiaries of which include at least one institution
DURABLE MEDIUM	Any instrument which: (a)enables a client to store information addressed personally to that client in a way accessible for future reference and for a period of time adequate for the purposes of the information; and (b) allows the unchanged reproduction of the information stored;
BRANCH	A place of business other than the head office which is part of a counterparty and which has no legal personality
CONSOLIDATING SUPERVISOR	A competent authority responsible for the exercise of supervision on a consolidated basis of EU parent institutions and of institutions controlled by EU parent financial holding companies or EU parent mixed financial holding companies
ENFORCEMENT EVENT	An event of default or any similar event as agreed between the parties on the occurrence of which, under the terms of a financial collateral arrangement or by operation of law, the collateral taker is entitled to realise or appropriate financial collateral or a close-out netting provision comes into effect;
TOTAL RETURN SWAP	A derivative contract as defined in point (7) of Article 2 of Regulation (EU) No 648/2012 in which one counterparty transfers the total economic performance, including income from interest and fees, gains and losses from price movements, and credit losses, of a reference obligation to another counterparty
ONE-YEAR DEFAULT RATE	The ratio between the number of defaults occurred during a period that starts from one year prior to a date T and the number of obligors assigned to this grade or pool one year prior to that date
INDIRECT HOLDING	Any exposure to an intermediate entity that has an exposure to capital instruments issued by a financial sector entity where, in the event the capital instruments issued by the financial sector entity were permanently written off, the loss that the institution would incur as a result would not be materially different from the loss the institution would incur from a direct holding of those capital instruments issued by the financial sector entity;
RECIRPOCAL CROSS HOLDING	A holding by an institution of the own funds instruments or other capital instruments issued by financial sector entities where those entities also hold own funds instruments issued by the institution
SYNTHETIC HOLDING	An investment by an institution in a financial instrument the value of which is directly linked to the value of the capital instruments issued by a financial sector entity;
REFERENCE EXCHANGE RATE	The exchange rate which is used as the basis to calculate any currency exchange and which is made available by the payment service provider or comes from a publicly available source
REFERENCE INTEREST RATE	The interest rate which is used as the basis for calculating any interest to be applied and which comes from a publicly available source which can be verified by both parties to a payment service contract
SECURITISATION	A transaction or scheme, whereby the credit risk associated with an exposure or a pool of exposures is tranched, having all of the following characteristics: (a)payments in the transaction or scheme are dependent upon the performance of the exposure or of the pool of exposures; (b) the subordination of tranches determines the distribution of losses during the ongoing life of the transaction or scheme; (c) the transaction or scheme does not create exposures which possess all of the characteristics listed in Article 147(8) of Regulation (EU) No 575/2013.
TRANCHE	A contractually established segment of the credit risk associated with an exposure or a pool of exposures, where a position in the segment entails a risk of credit loss greater than or less than a position of the same amount in another segment, without taking account of credit protection provided by third parties directly to the holders of positions in the segment or in other segments;
CREDIT TRANSFER	A payment service for crediting a payee’s payment account with a payment transaction or a series of payment transactions from a payer’s payment account by the payment service provider which holds the payer’s payment account, based on an instruction given by the payer
SUBMITTER	A natural person employed by the contributor for the purpose of contributing input data
PAYMENT SERVICE USER	A natural or legal person making use of a payment service in the capacity of payer, payee, or both;
CO-BADGING	The inclusion of two or more payment brands or payment applications of the same payment brand on the same payment instrument.
USE OF A BENCHMARK	(a) issuance of a financial instrument which references an index or a combination of indices; (b) determination of the amount payable under a financial instrument or a financial contract by referencing an index or a combination of indices; (c) being a party to a financial contract which references an index or a combination of indices; (d) providing a borrowing rate as defined in point (j) of Article 3 of Directive 2008/48/EC calculated as a spread or mark-up over an index or a combination of indices and that is solely used as a reference in a financial contract to which the creditor is a party; (e)measuring the performance of an investment fund through an index or a combination of indices for the purpose of tracking the return of such index or combination of indices, of defining the asset allocation of a portfolio, or of computing the performance fees;
MARKET VALUE	For the purposes of immovable property, the estimated amount for which the property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion
MORTGAGE LENDING VALUE	The value of immovable property as determined by a prudent assessment of the future marketability of the property taking into account long-term sustainable aspects of the property, the normal and local market conditions, the current use and alternative appropriate uses of the property;
MARKING TO MARKET	The valuation of positions at readily available close out prices that are sourced independently, including exchange prices, screen prices or quotes from several independent reputable brokers
MARKING TO MODEL	Any valuation which has to be benchmarked, extrapolated or otherwise calculated from one or more market inputs
SECURITIES	All instruments referred to in section B of the Annex to Directive 93/22/EEC;
TRANSFERABLE SECURITIES	(i) shares in companies and other securities equivalent to shares in companies (shares); (ii) bonds and other forms of securitised debt (debt securities); (iii) any other negotiable securities which carry the right to acquire any such transferable securities by subscription or exchange, and instruments as referred to in Article 2(1) of Directive 2007/16/EC
TRANSFERABLE SECURITIES	Those classes of securities which are negotiable on the capital market, with the exception of instruments of payment, such as: (a) shares in companies and other securities equivalent to shares in companies, partnerships or other entities, and depositary receipts in respect of shares; (b) bonds or other forms of securitised debt, including depositary receipts in respect of such securities; (c) any other securities giving the right to acquire or sell any such transferable securities or giving rise to a cash settlement determined by reference to transferable securities, currencies, interest rates or yields, commodities or other indices or measures;
SECURITISATION SPECIAL PURPOSE ENTITIES	Entities whose sole purpose is to carry on a securitisation or securitisations within the meaning of Article 1(2) of Regulation (EC) No 24/2009 of the European Central Bank of 19 December 2008 concerning statistics on the assets and liabilities of financial vehicle corporations engaged in securitisation transactions and other activities which are appropriate to accomplish that purpose;
SECURITISATION SPECIAL PURPOSE ENTITY OR SSPE	A corporation trust or other entity, other than an institution, organised for carrying out a securitisation or securitisations, the activities of which are limited to those appropriate to accomplishing that objective, the structure of which is intended to isolate the obligations of the SSPE from those of the originator institution, and in which the holders of the beneficial interests have the right to pledge or exchange those interests without restriction
SHORT SALE	Any sale by an MMF of an instrument which the MMF does not own at the time of entering into the agreement to sell, including such sale where, at the time of entering into the agreement to sell, the MMF has borrowed or agreed to borrow the instrument for delivery at settlement, not including: (a) a sale by either party under a repurchase agreement where one party has agreed to sell to the other a security at a specified price with a commitment from the other party to sell the security back at a later date at another specified price; or (b) an entry into a futures contract or other derivative contract where it is agreed to sell securities at a specified price at a future date
INDEPENDENT PRICE VERIFICATION	A process by which market prices or marking to model inputs are regularly verified for accuracy and independence
CLOSE LINKS	A situation in which two or more natural or legal persons are linked by: (a)participation in the form of ownership, direct or by way of control, of 20 % or more of the voting rights or capital of an undertaking; (b)‘control’ which the relationship between a parent undertaking and a subsidiary, in all the cases referred to in Article 22(1) and (2) of Directive 2013/34/EU, or a similar relationship between any natural or legal person and an undertaking, any subsidiary undertaking of a subsidiary undertaking also being considered to be a subsidiary of the parent undertaking which is at the head of those undertakings; (c)a permanent link of both or all of them to the same person by a control relationship;