Securities Finance glossary

Environmental, social, and governance (ESG) refers to the three central factors in measuring the sustainability and societal impact of an investment in a company or business. These criteria help to better determine the future financial performance of companies (return and risk).

An equity swap is a financial derivative contract (a swap) where a set of future cash flows are agreed to be exchanged between two counterparties at set dates in the future.

An equity swap is a financial derivative contract (a swap) where a set of future cash flows are agreed to be exchanged between two counterparties at set dates in the future.

ERISA is a federal US tax and labor law that establishes minimum standards for pension plans in private industry. It contains rules on the federal income tax effects of transactions associated with employee benefit plans.

The use of a third party, which holds an asset or funds before they are transferred from one party to another.

Directive 2002/47/EC of the European Parliament and of the Council of 6 June 2002 on financial collateral arrangements.

EMIR is a body of European legislation for the regulation of over-the-counter derivatives.

An evergreen trade automatically renews after the expiry date. The parties involved in the trade agree that it rolls over automatically until one gives the notice to terminate it.

A security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange, thus experiencing price changes throughout the day as it is bought and sold.