Financial Markets
- foreign currency holding
A foreign-currency holding measures an entity’s net exposure to one specified currency. It is calculated by subtracting liabilities in that currency from the corresponding claims. Each …
- equity
Equity denotes the ownership interest in a corporation or quasi-corporation. It represents the amount attributable to owners once the entity’s liabilities have been deducted from its …
- foreign exchange forward
A foreign-exchange forward fixes an exchange rate today for a currency transaction that will be settled on a later date. One party will then deliver a …
- equity market
Equity markets channel investment into corporate ownership. Companies obtain funds by offering ownership claims to investors, while those investors can later trade the claims among themselves. …
- foreign exchange operations
Foreign exchange operations cover transactions that change the currency in which funds are denominated. In the Eurosystem, the term is used for dealings involving a foreign …
- equity security
Equity securities are tradable claims that give investors a stake in a company. They include listed shares bought and sold on exchanges or other organised markets, …
- foreign exchange settlement risk (cross-currency settlement risk)
Foreign exchange settlement risk arises when the two payment legs of a currency trade are completed at different times or through separate systems. A party may …
- euro interbank offered rate (EURIBOR)
EURIBOR is a daily benchmark for euro-denominated interbank lending. It is derived from the rates submitted by a representative group of prime banks for deposits with …
- forward rate agreement (FRA)
A forward rate agreement (FRA) is an interest-rate derivative used to determine the cost of borrowing or the return on lending for a future period. The …
- euro overnight index average (EONIA)
EONIA was the euro money market’s benchmark for unsecured overnight interest rates. Until 30 September 2019, it was derived from euro interbank lending rates submitted by …