22.07.2020

Index Dictionary (Jargon)

This Jargon Index Dictionary is a section of a financial regulatory dictionary. And it has a specific regulation. The language of the financial regulatory field is complex and an entry barrier to understanding its regulation. This work is informative and lacking in scientific character. 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
ADMINISTRATOR	A natural or legal person that has control over the provision of a benchmark
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
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)
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
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
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
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
TRANSACTION DATA	Observable prices, rates, indices or values representing transactions between unaffiliated counterparties in an active market subject to competitive supply and demand forces
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;
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;
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
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
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 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
FINANCIAL INSTRUMENT	Any of the instruments listed in Section C of Annex I to Directive 2014/65/EU for which a request for admission to trading on a trading venue, has been made or which is traded on a trading venue or via a systematic internaliser
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
INDEX PROVIDER	A natural or legal person that has control over the provision of an index;
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
SUBMITTER	A natural person employed by the contributor for the purpose of contributing input data
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;