Financial Market Acronym Library
A searchable reference for the abbreviations used across bonds, banking, central banks, payments, clearing, settlement, risk and financial infrastructure.
ACT/360
A day-count convention using actual elapsed days and a 360-day denominator.
DAY COUNTACT/365
A day-count convention using actual elapsed days and a 365-day denominator.
SECURITIZATIONABS
A security backed by a pool of financial assets such as loans or receivables.
BANKINGALM
Management of balance-sheet exposures arising from the timing and behavior of assets and liabilities.
FIXED INCOMEASW
A spread measure that compares a bond with the interest-rate swap curve through an asset-swap structure.
BANKINGAT1
A regulatory capital category designed to absorb losses while a bank remains a going concern.
INVESTMENTAUM
The market value of assets managed for clients or investment vehicles.
INSTITUTIONSBIS
An international organization serving central banks and supporting monetary and financial cooperation.
MARKET MATHBPS
A rate unit where one basis point equals 0.01 percentage point.
SOVEREIGN DEBTCAC
A bond provision allowing a specified majority of holders to agree to restructuring terms binding on all covered holders.
MARKET INFRASTRUCTURECCP
An entity that interposes itself between counterparties to cleared transactions and manages resulting counterparty risk.
MONEY MARKETSCD
A deposit instrument issued by a bank with specified maturity and interest terms.
CREDITCDS
A derivative transferring specified credit risk from protection buyer to protection seller.
BANKINGCET1
The highest-quality core regulatory capital category under the Basel framework.
SECURITIZATIONCLO
A structured vehicle backed primarily by a portfolio of leveraged loans.
FX INFRASTRUCTURECLS
A financial market infrastructure that mitigates principal risk in settlement of eligible FX transactions.
MONEY MARKETSCP
Short-term unsecured debt commonly issued by corporations and financial institutions.
MACROCPI
An index measuring changes in prices paid by consumers for a defined basket of goods and services.
INSTITUTIONSCPMI
A BIS committee focused on payment, clearing, settlement and related market-infrastructure issues.
MARKET INFRASTRUCTURECSD
Infrastructure that records securities and supports their safekeeping and settlement.
DERIVATIVESCVA
An adjustment to derivative valuation reflecting counterparty credit risk.
BANKINGD-SIB
A bank designated as systemically important within a domestic financial system.
BANKINGDGS
An arrangement designed to protect eligible deposits up to applicable limits if a member bank fails.
INFRASTRUCTUREDLT
Technology for maintaining synchronized records across multiple participating nodes.
SETTLEMENTDvP
A settlement mechanism linking securities delivery to corresponding payment so one occurs if and only if the other does.
FIXED INCOMEDV01
A measure of approximate value change for a one-basis-point move in yield or rate.
CREDIT RISKEAD
The modeled or measured exposure outstanding when a borrower defaults.
INSTITUTIONSEBA
An EU authority contributing to banking regulation, supervision convergence and risk assessment.
CENTRAL BANKSECB
The central bank for the euro area and a core institution of the Eurosystem.
MARKET INFRASTRUCTUREECMS
The Eurosystem platform used for managing assets mobilized as collateral in Eurosystem credit operations.
CENTRAL BANKINGELA
Exceptional central-bank liquidity support generally provided to solvent institutions facing temporary liquidity problems under applicable frameworks.
RISKES
A tail-risk measure estimating average loss beyond a selected VaR threshold.
INSTITUTIONSESMA
An EU authority focused on securities markets, investor protection and supervisory convergence.
MONEY MARKETS€STR
The ECB-administered overnight rate reflecting euro unsecured wholesale borrowing costs of euro-area banks under its methodology.
INVESTMENTETF
An investment fund whose shares trade on an exchange.
BANKINGEVE
A balance-sheet measure used in interest-rate risk analysis to assess changes in the economic value of equity.
INFRASTRUCTUREFMI
A system or arrangement supporting payments, clearing, settlement, recording or related financial-market functions.
CENTRAL BANKSFOMC
The Federal Reserve committee responsible for US monetary policy decisions including the target range for the federal funds rate.
FIXED INCOMEFRN
A debt security whose coupon resets periodically using a reference rate plus or minus a spread.
MARKETSFX
The market and processes for exchanging one currency for another.
BANKINGG-SIB
A bank identified internationally as systemically important under the relevant assessment framework.
MACROGDP
A measure of the value of final goods and services produced within an economy over a period.
BANKINGHQLA
Assets recognized under liquidity regulation as readily monetizable under stress, subject to applicable eligibility and haircut rules.
SECURITYHSM
Specialized hardware designed to protect cryptographic keys and perform sensitive cryptographic operations.
RATESIBOR
A generic term for interbank offered-rate benchmarks historically used across lending and derivatives markets.
CLEARINGIM
Collateral collected to cover potential future exposure over a defined close-out period.
INSTITUTIONSIMF
An international institution supporting monetary cooperation, macroeconomic surveillance and financial assistance to members.
VALUATIONIRR
The discount rate that sets the net present value of a specified cash-flow stream to zero.
BANKINGIRRBB
Interest-rate risk arising from banking-book positions and their repricing, basis and option characteristics.
DERIVATIVESISDA
An industry association known for standard documentation and work on derivatives market practices.
IDENTIFIERSISIN
A standardized identifier for securities.
BANKINGLCR
A regulatory liquidity ratio comparing high-quality liquid assets with modeled net cash outflows over 30 days.
IDENTIFIERSLEI
A standardized identifier for legal entities participating in financial transactions.
CREDIT RISKLGD
The share of exposure expected to be lost if default occurs, after recoveries.
CREDIT RISKLTV
A ratio comparing a loan balance with the value of the asset securing it.
SECURITIZATIONMBS
A security backed by cash flows from a pool of mortgage loans.
RESOLUTIONMREL
An EU resolution requirement intended to ensure banks maintain sufficient loss-absorbing and recapitalization capacity.
INVESTMENTNAV
The value of a fund's assets minus liabilities, typically expressed in total or per-share terms.
FXNDF
A cash-settled FX forward commonly used where physical delivery of a currency is restricted or impractical.
BANKINGNIM
Net interest income relative to a defined base of interest-earning assets.
SECURITY REGULATIONNIS2
An EU cybersecurity directive expanding risk-management and incident-reporting obligations across covered sectors and entities.
VALUATIONNPV
The present value of future cash flows minus the initial investment or cost.
BANKINGNSFR
A regulatory ratio comparing available stable funding with required stable funding over a longer horizon.
FIXED INCOMEOAS
A modeled spread measure that adjusts for the value and behavior of embedded options.
RATESOIS
An interest-rate swap exchanging a fixed rate against a leg linked to a compounded overnight reference rate.
MARKETSOTC
Trading conducted bilaterally or through dealer networks rather than on a centralized exchange order book.
CREDIT RISKPD
The estimated likelihood that an obligor defaults over a specified horizon.
INFRASTRUCTUREPFMI
International principles issued by CPMI and IOSCO for systemically important payment systems, CSDs, securities settlement systems, CCPs and trade repositories.
ACCOUNTINGP&L
The gain or loss generated over a period or from a position, strategy or business activity.
SETTLEMENTPvP
A settlement mechanism linking final transfer of one currency to final transfer of another to reduce principal risk.
RATESRFR
A generic label for reference rates designed to be robust and based on low-credit-risk overnight markets.
BANKINGROA
Profit relative to the asset base over a specified period.
BANKINGROE
Profit relative to shareholders' equity over a specified period.
RESILIENCERPO
The target maximum data-loss interval used in business continuity and disaster recovery planning.
PAYMENTSRTGS
A system that settles payments individually in real time in central-bank money or another designated settlement asset.
RESILIENCERTO
The target time within which a service or process should be restored after disruption.
BANKINGRWA
Exposures weighted under regulatory rules to determine risk-based capital requirements.
INSTITUTIONSSEC
The US federal securities regulator.
SECURITYSIEM
Technology and processes for collecting, correlating and analyzing security event data.
SYSTEMIC RISKSIFI
A financial institution whose distress or failure could have significant consequences for the wider financial system.
OPERATIONSSLA
A contractual or operational agreement defining service expectations and performance measures.
MONEY MARKETSSOFR
A broad measure of the cost of borrowing cash overnight collateralized by US Treasury securities, administered by the Federal Reserve Bank of New York.
MONEY MARKETSSONIA
The Bank of England-administered overnight benchmark for sterling unsecured wholesale transactions under its methodology.
BANKINGSREP
A supervisory process used to assess banks' risks, governance, capital and liquidity positions.
CENTRAL BANKINGSRF
A Federal Reserve facility designed to provide overnight liquidity against eligible securities to eligible counterparties under its terms.
MARKET INFRASTRUCTURESSS
Infrastructure enabling transfer and settlement of securities according to defined rules and arrangements.
OPERATIONSSTP
Automated processing of transactions from initiation through downstream stages with minimal manual intervention.
MESSAGINGSWIFT
A cooperative providing secure financial messaging services and standards used across the global financial system.
PAYMENTST2
The Eurosystem's RTGS service for settling large-value euro payments in central-bank money.
SETTLEMENTT2S
A Eurosystem platform providing securities settlement services in central-bank money.
SOVEREIGN LIQUIDITYTGA
The US Treasury's principal operating account at the Federal Reserve.
PAYMENTSTIPS
The Eurosystem service for settling eligible instant payments in central-bank money around the clock.
RESOLUTIONTLAC
An international standard requiring designated global systemically important banks to maintain instruments capable of absorbing losses and supporting recapitalization in resolution.
MARKET INFRASTRUCTURETR
An entity that centrally collects and maintains records of derivatives or other reportable transactions.
RISKVaR
A model-based loss threshold associated with a selected confidence level and time horizon.
CLEARINGVM
Collateral exchanged to reflect current mark-to-market gains and losses on positions.
FIXED INCOMEWAL
The principal-weighted average time until principal repayments are received.
FIXED INCOMEWAM
A weighted average of the time remaining to maturity across a portfolio or pool.
FIXED INCOMEYTM
The discount rate that equates a bond's price with its scheduled cash flows through maturity under stated assumptions.
FIXED INCOMEYTW
The lowest conventionally calculated yield across specified permissible redemption scenarios.