Industry WIKI

The European Securities and Markets Authority (ESMA) is an agency of the European Union located in Paris. ESMA replaced the Committee of European Securities Regulators (CESR) on 1 January 2011. It is one of three European Supervisory Authorities set up within the European System of Financial Supervision in Paris, together with the European Banking Authority (EBA) also in Paris and the Eu

The European Systemic Risk Board (ESRB) is a group established on 16 December 2010 in response to the euro area crisis. It is tasked with the macro-prudential oversight of the financial system within the European Union in order to contribute to the prevention or mitigation of systemic risks to financial stability in the EU. It shall contribute to the smooth functioning of the internal ma

The European Union financial transaction tax (EU FTT) is a proposal made by the European Commission to introduce a financial transaction tax (FTT) within some of the member states of the European Union (EU).

The European Union tax haven blacklist, officially the EU list of non-cooperative tax jurisdictions, is a tool of the European Union (EU) that lists tax havens. It is used by the Member States to tackle external risks of tax abuse and unfair tax competition. It was adopted for the first time in 2017 as a response to tax avoidance in the EU, screening 92 countries. It is managed by the Co

Enterprise value/EBITDA (more commonly referred to by the acronym EV/EBITDA) is a popular valuation multiple used to determine the fair market value of a company. By contrast to the more widely available P/E ratio (price-earnings ratio) it includes debt as part of the value of the company in the numerator and excludes costs such as the need to replace depreciating plant, interest on debt

Event-driven investing or Event-driven trading is a broad term encompassing hedge fund investment strategies that seeks to exploit pricing inefficiencies that may occur before or after an event. Examples of such events could be an earnings call, bankruptcy, merger, acquisition, or spinoff. In more recent times market practitioners have expanded this definition to include additional event

The "everything bubble" refers to the impact on the values of asset prices, including equities, real estate, bonds, many commodities, and cryptocurrencies, due to quantitative easing by the Federal Reserve, European Central Bank, and the Bank of Japan. The policy itself and the techniques of direct and indirect methods of quantitative easing used to execute it are sometimes referred to a

Excess reserves are bank reserves held by a bank in excess of a reserve requirement for it set by a central bank.

An exchange, bourse (), trading exchange or trading venue is an organized market where people can buy and sell financial instruments, such as tradable securities, commodities, foreign exchange and derivative contracts.

In finance, an exchange rate is the rate at which one currency will be exchanged for another currency. Currencies are most commonly national currencies, but may be sub-national as in the case of Hong Kong or supra-national as in the case of the euro.

An exchange rate regime is a way a monetary authority of a country or currency union manages the currency about other currencies and the foreign exchange market. It is closely related to monetary policy and the two are generally dependent on many of the same factors, such as economic scale and openness, inflation rate, the elasticity of the labor market, financial market development, and

In macroeconomics, a flexible exchange-rate system is a monetary system that allows the exchange rate to be determined by supply and demand.

An exchange-traded note (ETN) is a senior, unsecured, unsubordinated debt security issued by an underwriting bank or by a special-purpose entity. Similar to other debt securities, ETNs may have a maturity date and are backed by the credit of the issuer, though some ETNs may have a portfolio of assets given as a collateral.

An exchange is the process of acquiring one asset using another. This article introduces definition, mechanics, usage verification, and common misconceptions.

The owner of an option contract has the right to exercise it, and thus require that the financial transaction specified by the contract is to be carried out immediately between the two parties, whereupon the option contract is terminated. When exercising a call option, the owner of the option purchases the underlying shares (or commodities, fixed interest securities, etc.) at the strike

An exit fare is a method of collecting ridership fees, or fares, from a transportation system, where the fee (or part of the fee) is collected from passengers upon reaching their destination.

An exit scam or rug pull is a confidence trick or fraud, perpetrated under the guise of a legitimate business, that ends when the originator absconds with the funds contributed by participants. When a business entity pulls the rug and stops shipping orders while receiving payment for new orders, it could take some time before it is widely recognized that orders are not shipping. The enti

The term exorbitant privilege refers to the benefits that the United States, as the world's supplier of safe assets, derives from its own currency (the US dollar) being the international reserve currency. These safe assets, primarily government debt, tend to be sold at higher prices than the debt of other governments. Exorbitant privilege enables the United States (and other states in a

In finance, an exotic option is an option which has features making it more complex than commonly traded vanilla options. Like the more general exotic derivatives they may have several triggers relating to determination of payoff. An exotic option may also include a non-standard underlying instrument, developed for a particular client or for a particular market. Exotic options are mor

The expected return (or expected gain) on a financial investment is the expected value of its return (of the profit on the investment). It is a measure of the center of the distribution of the random variable that is the return. It is calculated by using the following formula:

Expected shortfall (ES) is a risk measure—a concept used in the field of financial risk measurement to evaluate the market risk or credit risk of a portfolio. The "expected shortfall at q% level" is the expected return on the portfolio in the worst

The Expedited Funds Availability Act (EFA or EFAA) was enacted in 1987 by the United States Congress for the purpose of standardizing hold periods on deposits made to commercial banks and to regulate institutions' use of deposit holds. It is also referred to as Regulation CC or Reg CC, after the Federal Reserve regulation that implements the act. The law is codified in Title 12, Chapter

Experiential retail or experiential commerce is a type of retail marketing whereby customers coming into a physical retail space are offered experiences beyond the traditional ones (such as in a clothing store: browsing merchandise, advice from salespeople, dressing rooms and cashiers). Amenities provided may include art (often interactive art), live music performances, virtual reality,

In finance, the expiration date of an option contract (represented by Greek letter tau, τ) is the last date on which the holder of the option may exercise it according to its terms. In the case of options with "automatic exercise", the net value of the option is credited to the long and debited to the short position holders.

The Export Bonus Scheme (EBS) was a dual exchange rate system implemented by the government of Ayub Khan from 1959 to 1972. It was introduced to address foreign exchange shortages and support industrialization. In practice, it amounted to an effective devaluation of the Pakistani rupee for selected sectors. Although the EBS increased manufactured exports, it was later criticized for crea

Exposure at default (EAD) is a parameter used in the calculation of economic capital or regulatory capital under Basel II for a banking institution. It can be defined as the gross exposure under a facility upon default of an obligor.

Expressnet is an interbank network connecting the ATM networks of seven major banks in the Philippines. It has the second-largest number of ATMs (largely due to the vast nationwide presence of Bank of the Philippine Islands Express Teller ATMs) and the smallest number of customers and member banks. However, its strength among the interbank networks and the ubiquity of BPI ATMs have giv

EZ TAG is an electronic toll collection system in Houston, Texas, United States, that allows motorists to pay tolls without stopping at toll booths. Motorists with the tags are allowed to use lanes reserved exclusively for them on all Harris County Toll Road Authority (HCTRA) roads. As of late 2003, the EZ TAG can also be used on all lanes of tolled roadways in Texas that accommodate el

The EZ-Link card is a rechargeable contactless smart card and electronic money system that is primarily used as a payment method for public transport such as bus and rail lines in Singapore. A standard EZ-Link card is a credit-card sized stored-value contact-less smart-card that comes in a variety of colours, as well as limited edition designs. It is sold by SimplyGo Pte Ltd, a merged en

Facebook Credits was a virtual currency that enabled people to purchase items in games and non-gaming applications on the Facebook Platform. One U.S. dollar was the equivalent of 10 Facebook Credits. Facebook Credits were available in 15 currencies including U.S. dollars, pound sterling, euros, and Danish kroner. Facebook was hoping eventually to expand Credits into a micropayment system

The Falkland Islands pound is the currency issued by the Falkland Islands, a British Overseas Territory. The symbol is the pound sign, £. The ISO 4217 currency code is FKP. It is also used in South Georgia and the South Sandwich Islands. Its base unit is the pound, which is divided into 100 pence (singular is 'penny').

Fare capping is a feature of public transport fare collection systems, which allows passengers to earn an unlimited-ride pass by paying single-ride fares. Typically, passengers pay a single-ride fare each time they use public transport, using a smart card or, in some cases, their own credit or debit card. An automated fare collection system tracks the payments, and awards the passenger a

The króna (plural: krónur; sign: kr) is the currency of the Faroe Islands. It is issued by Danmarks Nationalbank, the central bank of Denmark. It is not a separate currency, but is rather a local issue of banknotes denominated in the Danish krone, although Danish-issued coins are still used. Consequently, it does not have an ISO 4217 currency code and instead shares that of the Danish kr

FASTag is an electronic toll collection system in India, operated by the National Highways Authority of India (NHAI). It employs Radio Frequency Identification (RFID) technology for making toll payments directly from the prepaid or savings account linked to it or directly toll owner. It is affixed on the windscreen of the vehicle and enables one to drive through toll plazas without stopp

Faster Payment System (FPS; Chinese: 快速支付系統, more commonly known as 轉數快) is a real-time gross settlement payment system in Hong Kong that connects traditional banks and electronic payment and digital wallet operators. Users are able to perform instant money transfer or make payment to merchants by using the recipient's phone number, e-mail or QR code that contains the user's numeric iden

The Faster Payments System (FPS; Russian: Система быстрых платежей, acronym СБП) is a system operated by the Bank of Russia that enables individuals to transfer funds using an identifier (currently a mobile phone number) between accounts in different credit institutions. The FPS also supports instant 24/7 payments for work, goods, and services, including transactions made via QR code. In

The Faster Payment System (FPS) is a United Kingdom real-time gross settlement system which facilitates transfers between different banks' customer accounts within a few seconds. The system offers faster settlement times than the long-established BACS and CHAPS systems. FPS processes a large volume of small payments, subject to limits set by the individual banks, with some allowing Faste

FasTrak is the electronic toll collection (ETC) system used in the state of California in the United States. It operates statewide on all toll roads, toll bridges, and high-occupancy toll lanes that are part of the California Freeway and Expressway System.

A fat-finger error is a keyboard input error or mouse misclick that occurs from a simple input mistake, causing unwanted secondary behavior. In common parlance, it simply refers to a common typographical error made on a touchscreen or physical keyboard that occurs when the wrong selection is made, or multiple selections are made due to options or keyboard keys being too close together.

The Federal Department of Finance (FDF, German: Eidgenössisches Finanzdepartement, French: Département fédéral des finances, Italian: Dipartimento federale delle finanze, Romansh: ) is one of the seven departments of the Swiss federal government. The department is headquartered in Bern and headed by a member of the Swiss Federal Council, Switzerland's finance minister. Initially, in 1848

The federal funds rate is the interest rate at which depository institutions (banks and credit unions) lend reserve balances to other depository institutions overnight on an uncollateralized basis. Reserve balances are amounts held at the Federal Reserve. Institutions with surplus balances in their accounts lend those balances to institutions in need of larger balances. The federal funds

The Federal Ministry of Finance (German: Bundesministerium der Finanzen, pronounced [ˈbʊndəsminɪsˌteːʁiʊm deːɐ̯ fiˈnantsn̩]; abbreviated BMF) is the cabinet-level finance ministry of Germany, with its seat at the Detlev-Rohwedder-Haus in Berlin and a secondary office in Bonn.

In September 2008, the Federal Housing Finance Agency (FHFA) announced that it would take over the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). Both government-sponsored enterprises, which finance home mortgages in the United States by issuing bonds, had become illiquid as the market for those bonds collapsed in the subp

Fiat money or fiat currency is a type of government-issued currency, generally created by a central bank, authorized by government regulation to be legal tender but not backed by a precious metal, such as gold or silver, nor by any other tangible asset or commodity. Since the end of the Bretton Woods system in 1976 by the Jamaica Accords, all the major government currencies in the world

FICO (legal name: Fair Isaac Corporation), originally Fair, Isaac and Company, is an American data analytics company based in Bozeman, Montana, focused on credit scoring services. It was founded by Bill Fair and Earl Isaac in 1956. Its FICO score, a measure of consumer credit risk, has become a fixture of consumer lending in the United States.

Filecoin (⨎) is a cryptocurrency intended to be a blockchain-based cooperative digital storage and data retrieval method. It was developed by Protocol Labs and shares some ideas from InterPlanetary File System allowing users to rent unused hard drive space. Filecoin is an open protocol and uses a blockchain to record participation in the network. Transactions are made using the blockchai

The fils (Arabic: فلس) is a subdivision of currency used in some Arab countries, such as, in modern times, Iraq and Bahrain. The term is a modern retranscription of fals, an early medieval Arab copper coin first produced by the Umayyad Caliphate (661–750) beginning in the late 7th century and used throughout the region under its rule.

Finance refers to the management, movement, investment, and raising of money.

The Finance Committee (Hebrew: ועדת הכספים) is a permanent Knesset committee which oversees finance issues of the State of Israel, including the drafting of legislation, supervision over related government ministries and the approval of their budgets. It is regarded as one of two most important Knesset committees (the other being the Foreign Affairs and Defense Committee). Article 100(2)

Finance Watch is an independent European non-profit association that conducts research and advocacy on financial regulation. Finance Watch develops a public interest vision for financial reform and interacts with policymakers to bring about change. Based in Brussels, the organization focuses on financial regulation in the European Union.

The Financial Action Task Force blacklist (often abbreviated to FATF blacklist, and officially known as the "Call for action") is a blacklist maintained by the Financial Action Task Force.

A financial analyst is a professional undertaking financial analysis for external or internal clients as a core feature of the job. The role may specifically be titled securities analyst, research analyst, equity analyst, investment analyst, or ratings analyst. The job title is a broad one:

Financial astrology (also known as business astrology, economic astrology, and/or astro-economics) is a pseudoscientific practice of relating the movements of celestial bodies to events in financial markets. The use of astrology in any context is not empirically based and its use in predicting financial markets is at plain odds with standard economic and financial theory.

A financial centre (financial center in American English) or financial hub is a location with a significant concentration of commerce in financial services.

The Financial Consumer Agency of Canada (French: Agence de la consommation en matière financière du Canada, FCAC) is an agency of the Government of Canada that enforces consumer protection legislation, regulations and industry commitments by federally regulated financial entities. It also provides programs and information to help consumers understand their rights and responsibilities whe

Financial contagion refers to "the spread of market disturbances—mostly on the downside—from one country to the other, a process observed through co-movements in exchange rates, stock prices, sovereign spreads, and capital flows". Financial contagion can be a potential risk for countries who are trying to integrate their financial system with international financial markets and instituti

The Financial Crimes Enforcement Network (FinCEN) is a bureau within the United States Department of the Treasury that collects and analyzes information about financial transactions to combat domestic and international money laundering, terrorist financing, and other financial crimes.

A financial crisis is any of a broad variety of situations in which some financial assets suddenly lose a large part of their nominal value. A broader reduction of economic activity affecting the whole economy is known as an economic crisis. In the 19th and early 20th centuries, many financial crises were associated with banking panics, and many recessions coincided with these panics. Ot

The Financial Crisis Inquiry Commission (FCIC) was established in 2010 in the United States to investigate the causes of the 2008 financial crisis. The commission, led by Phil Angelides, held public hearings, gathered testimony from hundreds, and released its report in January 2011.

Financial cryptography is the use of cryptography in applications in which financial loss could result from subversion of the message system. Financial cryptography is distinguished from traditional cryptography in that for most of recorded history, cryptography has been used almost entirely for military and diplomatic purposes.

A financial data vendor provides market data to financial firms, traders, and investors. The data distributed is collected from sources such as stock exchange feeds, brokers and dealer desks or regulatory filings (e.g. an SEC filing).

Financial deepening is a term used by economists to refer to increasing provision of financial services. It can refer both a wider choice of services and better access for different socioeconomic groups. Financial deepening can have an effect on both individuals' and societies' economic situations.

Financial econometrics is the application of statistical methods to financial data. Financial econometrics is a branch of financial economics, in the field of economics. Areas of study include capital markets, financial institutions, corporate finance and corporate governance. Topics often revolve around asset valuation of individual stocks, bonds, derivatives, currencies and other fina

Financial fragility is the vulnerability of a financial system to a financial crisis. Franklin Allen and Douglas Gale define financial fragility as the degree to which "...small shocks have disproportionately large effects." Roger Lagunoff and Stacey Schreft write, "In macroeconomics, the term "financial fragility" is used...to refer to a financial system's susceptibility to large-scale

The Financial Guard (Romanian: Garda Financiară) was the control agency, subordinated to the National Agency for Fiscal Administration (ANAF), with a mandate to control the financial, economic and customs domains to prevent and sanction the tax evasion and tax-related fraud according to the legislation in effect. The institution was headed by a civil servant, having the mandate of the C

Financial inclusion is the availability and equality of opportunities to access financial services. It refers to processes by which individuals and businesses can access appropriate, affordable, and timely financial products and services—which include banking, loan, equity, and insurance products. It provides paths to enhance inclusiveness in economic growth by enabling the unbanked po

The Financial Industry Regulatory Authority (FINRA) is a private American corporation that acts as a self-regulatory organization (SRO) that regulates member brokerage firms and exchange markets. FINRA is the successor to the National Association of Securities Dealers, Inc. (NASD) as well as to the member regulation, enforcement, and arbitration operations of the New York Stock Exchange.

The Financial Information eXchange (FIX) protocol is an electronic communications protocol initiated in 1992 for international real-time exchange of information related to securities transactions and markets. With trillions of dollars traded annually on the NASDAQ alone, financial service entities are employing direct market access (DMA) to increase their speed to financial markets. Mana

Financial innovation is the act of creating new financial instruments as well as new financial technologies, institutions, and markets. Recent financial innovations include hedge funds, private equity, weather derivatives, retail-structured products, exchange-traded funds, multi-family offices, and Islamic bonds (Sukuk). The shadow banking system has spawned an array of financial innovat

A financial instrument is a monetary contract between parties. They can be created, traded, modified and settled. They can be cash (currency), evidence of an ownership interest in an entity or a contractual right to receive or deliver in the form of currency (forex); debt (bonds, loans); equity (shares); or derivatives (options, futures, forwards).

The Financial Instrument Global Identifier (FIGI) /ˈfɪ.gi/ (formerly Bloomberg Global Identifier (BBGID)) is an open standard, unique identifier of financial instruments that can be assigned to instruments including common stock, options, derivatives, futures, corporate and government bonds, municipals, currencies, and mortgage products.

Financial integration is a phenomenon in which financial markets in neighboring, regional and/or global economies are closely linked together. Various forms of actual financial integration include: Information sharing among financial institutions; sharing of best practices among financial institutions; sharing of cutting edge technologies (through licensing) among financial institutions;

Financial law is the law and regulation of the commercial banking, capital markets, insurance, derivatives and investment management sectors. Understanding financial law is crucial to appreciating the creation and formation of banking and financial regulation, as well as the legal framework for finance generally.

A financial market is a marketplace where the pricing and trade of securities, commodities, currency, derivatives, or other financial products takes place. The term may refer to a specific stock or commodity exchange, or to the general process by which relevant economic activity is organized and carried out.

There are several concepts of efficiency for a financial market. The most widely discussed is informational or price efficiency, which is a measure of how quickly and completely the price of a single asset reflects available information about the asset's value. Other concepts include functional/operational efficiency, which is inversely related to the costs that investors bear for maki

Economic turmoil associated with the COVID-19 pandemic has had wide-ranging and severe impacts upon financial markets, including stock, bond, and commodity (including crude oil and gold) markets. Major events included a described Russia–Saudi Arabia oil price war, which after failing to reach an OPEC+ agreement resulted in a collapse of crude oil prices and a stock market crash in March

Financial market infrastructure refers to systems and entities involved in clearing, settlement, and the recording of payments, securities, derivatives, and other financial transactions. Depending on context, financial market infrastructure may refer to the category in general, or to individual companies or entities (thus also used in plural: financial market infrastructures).

There are two basic financial market participant distinctions, investors versus speculators and institutional versus retail. Action in financial markets by central banks is usually regarded as intervention rather than participation.

The Financial Modeling World Cup (FMWC) is an organization that hosts various Microsoft Excel–based competitions.

A financial network is a concept describing any collection of financial entities (such as payment card companies, firms, banks and financial transaction processing) and the links between them, ideally through direct transactions or the ability to mediate a transaction. A common example of a financial network link is security holdings (e.g. stock of publicly traded companies), where a fir

A financial planner or personal financial planner is a qualified financial advisor. Practicing in full service personal finance, they advise clients on investments, insurance, tax, retirement and estate planning.

A financial ratio or accounting ratio states the relative magnitude of two selected numerical values taken from an enterprise's financial statements. Often used in accounting, there are many standard ratios used to try to evaluate the overall financial condition of a corporation or other organization. Financial ratios may be used by managers within a firm, by current and potential shareh

Financial regulation is a broad set of policies that apply to the financial sector in most jurisdictions, justified by two main features of finance: systemic risk, which implies that the failure of financial firms involves public interest considerations; and information asymmetry, which justifies curbs on freedom of contract in selected areas of financial services, particularly those tha

Financial repression refers to government implementation of policies to channel domestic funds to the public sector that in a deregulated market environment would go elsewhere. These policies are used to reduce the government's debt-to-GDP ratio.

The financial result is the difference between earnings before interest and taxes and earnings before taxes. It is determined by the earning or the loss which results from financial affairs.

The Financial Revolution was a set of economic and financial reforms in Great Britain after the Glorious Revolution in 1688 when William III invaded England. The reforms were based in part on Dutch economic and financial innovations that were brought to England by William III. New institutions were created: a public debt (first government bonds were issued in 1693) and the Bank of Englan

Financial risk is any of various types of risk associated with financing, including financial transactions that include company loans in risk of default. Often it is understood to include only downside risk, meaning the potential for financial loss and uncertainty about its extent.

The Financial Secrecy Index (FSI) is the report published by the advocacy organization Tax Justice Network (TJN) which ranks countries by financial secrecy indicators, weighted by the economic flows of each country.

Financial sector development in developing countries and emerging markets is part of the private sector development strategy to stimulate economic growth and reduce poverty.

Financial services are economic services tied to finance provided by financial institutions. Financial services encompass a broad range of service sector activities, especially as concerns financial management and consumer finance.

The Financial Services Commission (FSC) is the Belize government agency responsible for non-banking financial regulation. It is responsible for regulating all non-banking financial market participants and setting and enforcing of financial regulations. A number of international online forex brokers obtain their international license from FSC.

Financial services in China refers to the services provided in China by the finance industry: banks, investment banks, insurance companies, credit card companies, consumer finance companies, government sponsored enterprises, and stock brokerages.

The industry which has a range of businesses that deal with money like banks, insurance companies, accounting companies, finance companies, taxation, investment funds, credit companies, and few government enterprises is called the finance industry. The activities or services within this industry that cater to the economy of the country are called financial services. Therefore, the econom

A financial sponsor is a private equity investment firm, particularly a private equity firm that engages in leveraged buyout transactions.

The Financial Stability Board (FSB) is an international body that monitors and makes recommendations about the global financial system. It was established in the 2009 G20 Pittsburgh Summit as a successor to the Financial Stability Forum (FSF). The Board includes all G20 major economies, FSF members, and the European Commission. Hosted and funded by the Bank for International Settlements,

The Financial Stability Forum (FSF) was a group consisting of major national financial authorities such as finance ministries, central bankers, and international financial bodies. It was first convened in April 1999 in Washington. At the 2009 G20 London summit, the G20 nations established a successor to the FSF, called the Financial Stability Board with an expanded membership and broaden

The Financial Stability Oversight Council (FSOC) is a United States federal government organization, established by Title I of the Dodd–Frank Wall Street Reform and Consumer Protection Act, which was signed into law by President Barack Obama on July 21, 2010. The Office of Financial Research is intended to provide support to the council.

A financial regulatory authority or financial supervisory authority, alternatively financial regulator or financial supervisor, is a public authority whose role is to ensure the proper implementation of financial regulation within its scope of responsibility. Some, though not all, such authorities also set financial rules of their own.

A financial system is a system that allows the exchange of funds between financial market participants such as lenders, investors, and borrowers. Financial systems operate at national and global levels. Financial institutions consist of complex, closely related services, markets, and institutions intended to provide an efficient and regular linkage between investors and borrowers.

Financial technology (abbreviated as fintech) refers to the application of new technologies to products and services in the financial industry. This broad term encompasses a wide array of technological tools in financial services, including mobile banking, online lending platforms, digital payment systems, robo-advisors, and blockchain-based applications such as cryptocurrencies. Financi