Due to our high degree of specialization and the wide range of our services, OeKB cannot always avoid using technical language. In our glossary we explain key words that may be difficult to understand. If the term you are looking for is not listed below, please let us know and we will add it.
ADAS (Austrian Direct Auction System)
The Austrian Direct Auction System, or ADAS, is a special software developed by OeKB for the settlement of government bond auctions.
For more about the auction procedure for Austrian government bonds.
Advance Payment Guarantee
An “advance payment guarantee” is the guarantee of a bank or insurer that protects the down payment risk of an importer. If the exporter does not provide the goods or services agreed upon, or goes bankrupt, the importer’s down payment is returned.
See also risk assumptions for bank guarantees
AGCS (Gas Clearing and Settlement)
The AGCS, “Austrian Gas Clearing and Settlement AG", is a clearinghouse for balancing energy in the Austrian gas market. As Balance Group Coordinator (BGC), AGCS is responsible for the price determination and billing of balancing energy in the distribution area East.
APCS (Power Clearing and Settlement)
The APCS, “Power Clearing and Settlement AG", is the central clearinghouse for balancing energy on the Austrian electricity market. As Balance Group Coordinator (BGC), APCS is responsible for price determination and billing for balancing energy.
The distribution of invested assets over different types of investment classes is called asset allocation.
The asset allocation of Austrian pension funds is shown on this page:
Investment Development of Pension Funds
An aval, or financial guarantee, is a bank guarantee that assumes the customer’s burden of debt and works much like a guarantee. If the customer is not able to settle their debt, the bank pays. Banks often demand collateral for guarantees.
Here you find more about avals.
Risk Assumption for Bank Guarantees
Balancing Area APG (Electricity)
A balancing area describes a network area in the electricity market within which the balance between generation and consumption is coordinated. APG is the abbreviation for "Austrian Power Grid", a public limited company that operates the supra-regional grid and is responsible for the control of Austrian electricity energy supply.
Balancing Area OST (Gas market)
This distribution area describes a network on the gas market within which the balance between gas supply and gas consumption is coordinated. The settlement of balancing energy in the distribution area OST is done by AGCS. OeKB conducts financial clearing, risk management and credit checks as a service provider of AGCS.
A batch file contains a set of data records that can be processed by a computer in a single step. Among other things, we send master data and appointment data on domestic and foreign securities on request as a batch file. Batch files can contain data in different file formats such as: TXT, CSV, XML etc.
Balancing energy is the difference between the energy input and the energy output within a balance group. If, for example, the actual consumption of a balance group differs from the forecast consumption, this is called “balancing energy”. Further information is available from the regulatory authority “E-Control” on their page:
Control reserve and balancing energy
A balancing group is a collection of suppliers and customers in a virtual group within an energy market, within which a balance between application (energy purchasing, energy production,) and delivery (energy sales, consumption) of electrical energy takes place.
Balance Group Coordinator (BGC)
The balance group coordinator (BGC) is the registry for market participants in an energy market. The calculation, allocation and billing of balancing energy is the task of the balancing group coordinator.
Balance Group Representative (BGR)
As the legal entity, the balance group representative (BGR) represents the balance group members on the energy market as opposed to other market participants.
A bearer security is a security that is not registered to a specific name. A change of ownership is made by a simple handover. The opposite of a bearer security is a registered security.
Berne Union (BU)
The Berne Union (BU) is the international association of export credit and investment insurance companies. OeKB is a member of the Berne Union. Further information about our memberships in international institutions can be found here:
A bid bond is often required in international tenders. Only bidders who deposit a bank guarantee together with their offer will be accepted. The tendering authority wants to ensure that the bidder is able to fulfil its obligations with the offer and not, for example, back out of the contract. The amount is usually between 2% to 5% of the offer value.
Bid Closing Date
A "bid closing date" is the deadline for submitting a bid.
BGC is the acronym for “balance group coordinator” in the energy market. The BGC is the operator of the clearinghouse, which performs the calculations of the balancing energy, determines the price for balancing energy, and manages the balance group in organizational and accounting regards.
As an exporter, you can offer your customer abroad attractive financing for their purchases using a buyer credit and ensure your liquidity from the very beginning by drawing on the loan, irrespective of their subsequent repayments.
More information can be found here:
Capital Yields Tax (KESt)
The capital yields tax (KESt) is a form of income tax that must be paid on domestic investment income, in particular from shares and investment funds. In Austria, domestic and foreign investment funds report tax-relevant data to OeKB, which then determines the income tax treatment.
OeKB publishes this data here:
Central Counterparty (CCP)
A central counterparty (CCP) is a legal entity that enters into a transaction between parties as a contracting party when dealing in securities. The CCP is a kind of middleman who ensures the anonymization of trading and ensures the efficiency of offsetting risk, since they become the central trading partner for both buying and selling.
Central Counterparty Austria (CCP.A)
CCP.A, "CCP Austria Settlement Agent for Exchange Transactions", acts as the central counterparty in Austria for all transactions executed on the Vienna Stock Exchange (cash market and futures market). It is responsible for the clearing and risk management of all CCP-eligible securities and forward transactions on the Vienna Stock Exchange and assumes or manages the settlement or default risk. The company is equally owned by Wiener Börse AG (The Vienna Stock Exchange) and OeKB.
CCP.A – Central Counterparty Austria
Central Securities Depository
A central securities depository assumes the collective custody of securities deposited by credit institutions and which can be ordered (in collective custody). In Austria, OeKB CSD GmbH fulfils these tasks.
OeKB CSD GmbH
CFI (Classification of Financial Instruments)
The CFI code was developed to enable a globally consistent categorization of financial instruments. This is advantageous because the terms of financial products in different countries have different meanings. Since July 2017, the CFI has been renewed to better meet the ever-growing demands.
CIRR (Commercial Interest Reference Rate)
The Commercial Interest Reference Rate (CIRR), as defined in the OECD Arrangement, is a reference interest rate for state-subsidized export finance. In the eurozone member countries, there is a single EUR CIRR based on the secondary market yield of prime European government bonds. The CIRR is published on OECD´s website and is valid from the 15th of a month to the 14th of the following month.
Clearing is the determination of mutual claims and liabilities in financial transactions. In the clearing process, the delivery and payment of claims from securities transactions are settled centrally. This reduces the number of transactions required.
Debt collection is the collection of receivables. In the securities industry, this means that the equivalent value of the maturing securities of coupon and principal payments is requested by the respective paying agent.
In collective custody, securities of the same category are held by custody account holders - at CSD.Austria itself or with one of its custodians. This means that there are no physical ownership certificates. As a holder you have a share of the collection, which can be proven by a deposit slip.
Company Pension Funds
Company pension funds are those that are established by a company or group exclusively for its own employees. In contrast, intercompany pension funds are open to employees of various companies.
A "competitive bid" in the government bond auction process consists of the price and nominal amount. The bidder is prepared to acquire the nominal amount at the offered price.
The concessionality level indicates how cheap a loan is when compared to loans issued at the market rate. This measure is important in the case of "soft loans" ("development aid credit"), for which the OECD arrangement requires a basic degree of benefit of at least 35%, and at least 50% in the least developed countries.
Here you can find more information on soft loans.
Soft Loans - Concessional financing
A contract guarantee covers the risk of defects.
The member states of the European Union have undertaken to comply with community standards in transactions covered by public support. Deviations from these standards must be reported to the other member states and to the commission in the framework of the EU consultation procedure.
Find out more here:
The term "corporate action" designates all company events. These include obligatory capital measures, such as stock splits and mergers, voluntary capital measures, subscription rights and exchanges, as well as income and repayments and the Annual General Meeting.
Country Cover Policy
Our country cover policy serves as a guide for existing coverage options on a country by country basis.
Coverage guidelines can be downloaded here:
The term "coupon" denotes the interest or dividend coupon of a security that entitles the holder to receive the income due or exercise other rights (subscription rights).
The part of a security in which the share or claim right is securitized. The coverage is supplemented by a coupon or dividend coupons.
The coverage ratio indicates the extent of the export guarantee coverage and is an expression of the risk assessment of a customer’s country (political coverage ratio), or of the customer abroad/guarantor (economic coverage ratio). It is determined by the amount of the fixed deductible (for example, 5% deductible = 95% coverage).
Coverage ratios can be viewed here:
CRD IV (Capital Requirements Directive)
CRD, or "Capital Requirements Directive", is the European directive for the implementation of the Basel III regulations.
A credit analysis is used to assess the creditworthiness of a debtor. Creditworthiness refers to the ability and willingness of a debtor to repay their debts.
CSV is a file format in which the entries within a data record are separated and stored column by column with defined characters (such as commas or semicolons). The format is particularly suitable for the simple exchange of data in a table structure. Other common formats for data exchange are TXT and XML.
Custodian Bank/Depository Bank
A custodian bank is authorized to hold custody and administration of securities for others.
Custody is any administrative activity that can occur as part of a security cycle. These include income-related tasks such as interest due and dividend payments, capital repayments, capital measures, capital increases, or stock splits.
Data vendors are companies that pass on current, professionally prepared price and market data, as well as other financial information, to capital market participants (other vendors, professional investors and private investors) for a fee.
De Minimis Projects
Projects with a value below two million SDRs (special drawing rights) are referred to as "de minimis projects".
Custodian of securities.
Derivatives are financial instruments whose value or price depends on an underlying asset (such as securities or commodities). Derivatives are, in principle, contracts in which two parties agree to buy, sell or exchange one or more items at specified conditions in the future. One speculates on making a profit from the change in price compared to the underlying asset.
Disclosed Purchase of Accounts Receivables
In the case of a disclosed purchase of accounts receivables, the bank buys the outstanding receivables from an importer and thereby assumes the risk of default. A disclosed purchase of accounts receivable is when the customer knows that the receivables have been sold to a bank.
Here you can fin d more information on sale of receivables.
Sale of Receivables
EACH (European Association of CCP Clearinghouses)
EACH, "European Association of CCP Clearing Houses", was founded in 1992 by the European Central Counterparty Clearing Houses and represents the interests of European counterparties. The members specialize in clearing and risk management of European CCPs inside and outside the EU.
ECA (Export Credit Agency)
ECA is the acronym for "Export Credit Agency". OeKB is the ECA in Austria. On behalf of the Republic of Austria, it assigns export liabilities and implements the Export Financing Scheme (EFV).
ECSDA (European Central Securities Depositories Association)
The European Central Securities Depositories Association, ECSDA, is the Association of Securities Depositaries in Europe. ECSDA is a European organization that aims to harmonize cross-border securities transactions.
Equity financing is the financing of shares or assets and other investments. This is a form of self-financing, whereby the financial resources are supplied from the outside as equity or as a shareholder loan. How we support foreign investments can be found on the page Financing of Foreign Investments.
EURIBOR (Euro Inter Bank Offered Rate)
The EURIBOR, "Euro Inter Bank Offered Rate", is an interest rate determined for term deposits (time deposits, fixed deposits) in euros, which is charged between banks. This interest rate is quoted daily by representative banks (EURIBOR panel banks), which are characterized by their active participation in the euro-money market. When quoting, the highest and lowest values are omitted (15% each).
EXAA (Energy Exchange Austria)
The Energy Exchange Austria (EXAA) is the Austrian energy exchange. OeKB performs financial clearing, risk management and credit checks for the EXAA.
The condition for a soft loan (tied aid credit) is that the project is financially unsustainable. This means that it cannot afford the credit on its income, as is the case, for example, with a public hospital (as opposed to a private hospital). For soft loans, this financial non-sustainability is checked with the first key test.
Read more about soft loans here:
Soft Loans – Concessional Financing
First Key Test
A two-step process is used to determine if a project qualifies for a soft loan. The first step is the first key test, which assesses whether or not a project is financially viable. The condition for a soft loan (tied aid credits) is that the project is financially unsustainable. This means that it cannot afford the credit on its income, as is the case for example with a public hospital (as opposed to a private hospital).
Read more about soft loans here:
Soft Loans – Concessional Financing
FISN (Financial Instrument Short Name)
FISN is an internationally standardized abbreviation for financial instruments and issuers. The FISN is intended to significantly reduce the time and effort involved in the laborious shortening of issuer and product names, and to ensure a consistent worldwide presentation.
FIX (Financial Information eXchange)
The Financial Information eXchange (FIX) protocol includes a set of messaging specifications for the electronic communication of trading messages and is used for the standardized exchange of information. It was developed through the collaboration of banks, broker-dealers, stock exchanges, industry utilities and associations, institutional investors and information technology providers from around the world.
Tied Aid Credit
Tied aid credits are development aid loans that are tied to exports from the respective donor country.
Learn more about development aid loans here:
Soft Loans – Concessional Financing
Export guarantees are intended to support the Austrian export industry and should benefit the Austrian value chain. Nevertheless, a certain proportion of supplies and services of foreign origin can be co-insured. This includes, in particular, "local costs" incurred locally and "supplies or services from third countries" which the Austrian exporter or their customer purchases.
In the context of soft loans, framework agreements are agreements on financial cooperation with selected soft loan countries. The framework agreement is concluded between the government of the Republic of Austria, represented by the Federal Minister of Finance, and the respective partner country. Such framework agreements are normally valid for a period of two years.
FundsXML is an XML application that is open, i.e. free of charge, with a freely usable data format for the internationally standardized exchange of fund information.
On the futures market, the supply and demand of futures are traded. The parties must fulfil completed transactions at least three trading days after the conclusion of the transaction in a fixed period. Trades with a shorter settlement period are assigned to the spot or cash market.
The total issuance of securities of the same category is kept in a single instrument, the Global Note or the Global Certificate, which simplifies administration and safekeeping. The rights of the various investors are evidenced in this global certificate, there is no right to individual certificates.
Government bonds are fixed-rate securities issued by the Republic of Austria. They are usually denominated in euros, listed on the stock exchange, and currently have terms of one to 100 years.
A grant is a non-repayable sum of money.
The guarantee premium is a proportionate fee for guarantees based on the type and scope of the covered risk. The minimum amount is specified by OECD rules.
Guiding Principles of the Berne Union
The general guidelines to which the members of the Berne Union have committed themselves are laid down in the Guiding Principles.
Here you can download the Guiding Principles of the Berne Union
Guiding Principles of the Berner Union
OeKB is a member of the Berne Union. Find out more about memberships in international institutions here:
HIPC is the acronym for "heavily indebted poor countries". The World Bank keeps a list of HIPC.
IFIs (International Financial Institutions)
IFI is the abbreviation for "International Financial Institutions". This includes:
- World Bank
- Regional development banks and funds
- International UNO Fund for Agricultural Development (IFAD - International Fund for Agricultural Development)
IFIs assist developing countries to raise capital and acquire knowledge to drive their development process. Due to country risk, developing countries have little opportunity to raise sufficient funds on the open market.
Inter-company Pension Funds
Inter-company pension funds are pension funds that save, invest and pay company pensions for employees of different companies. This is in contrast to company pension funds, which manage the pension capital for the workforce of a single company.
An interest coupon is the section of a security that entitles you to redeem interest.
Investment and Risk Sharing Group (VRG)
An investment and risk sharing group (VRG) is an administrative unit in a pension fund in which the pension accounts of the beneficiaries are maintained. Each pension fund contract is incorporated into a specific VRG according to its contractual parameters. All pension fund contracts, and therefore the money of all beneficiaries, are assessed in a VRG according to a uniform investment strategy with common investment opportunities and risks.
ISIN (International Securities Identification Number)
The International Securities Identification Number (ISIN) is a twelve-digit combination of letters and numbers that makes each security uniquely identifiable throughout the world. An ISIN consists of a country code prefix (e.g. AT for Austria), the base number, and the check digit.
In Austria, this International Securities Identification Number is assigned by OeKB as the "National Numbering Agency". You can also design your ISIN as you wish or reserve it in blocks.
Here you can find more about ISIN:
An issuer is a company or corporation that issues securities to raise capital. These include, for example: federal governments, state or provincial governments, credit institutions, industrial companies.
Kontrollbank Credit Line (KRR)
The Kontrollbank Credit Line (Framework credit for large enterprises - KRR), provides companies with access to low-interest framework loans for working capital financing of their export business. On the basis of a bill of exchange guarantee, we deduct up to 80% of the credit risk from the bank.
Here you can find more information on the Framework credit for large enterprises:
Framework credit for large enterprises (KRR)
LEI (Legal Entity Identifier)
The LEI is a 20-digit alphanumeric identification number and serves as a globally unique reference code for all legally independent entities, such as companies and funds. As of 3 January 2018, the LEI is mandatory for many companies and funds.
Here you find further information on our LEI service (in cooperation with our partner WM Datenservice:
Letter of Credit
A letter of credit is a payment instrument agreed between an exporter and an importer. The importer's bank undertakes to provide the stipulated amount by submitting the required documents. The exporter then receives their payment independently of the importer.
Letter of Credit Confirmation
With a letter of credit confirmation, a domestic bank, usually the exporter's bank, assumes the obligation to pay the letter of credit, thus relieving the exporter of the risk that the foreign bank cannot pay for economic or political reasons.
More about letters of credit
Letter of Intent
We reserve projects with a "Letter of Intent" (LOI), which confirms that the project can be protected in principle.
Marketable risks are commercial and political risks of debtors and guarantors in all EU countries and the OECD countries: Australia, Canada, Iceland, Japan, New Zealand, Norway, Switzerland, the USA and the United Kingdom with a risk duration (production period and repayment term) of less than two years. Marketable risks are insured by private credit insurance.
Private Credit Insurance
Master Data and Appointment Data
Master data is basic static security data such as the name of the issuer or the security name. Appointment data is dynamic securities data such as the exchange ratio or a variable interest rate.
A mixed credit is a financing package consisting of a non-repayable grant from the Federal Ministry of Finance and a soft loan.
Large projects often involve suppliers from different countries. In these multi-sourcing projects, the risk is covered or financed by international cooperation between export insurers and financial institutions.
In the case of securities transactions settled via a central counterparty, delivery and payment obligations are continuously offset. By offsetting the offsetting receivables against a "net position", the number of securities transactions to be settled is significantly reduced. This process is called netting.
No par value Share
A no par value share is a share that is issued with no par or face value, i.e. it has no stated nominal value. Each individual share of a company represents exactly the same share of the capital stock. In contrast, par value shares may have different denominations and thus reflect different sized shares in a company.
The nominal value of a security, or bond, shows the amount that constitutes the basis for the interest and the amount of the holder's claim against the issuer in the event of repayment. For shares, the nominal amount defines the amount by which the shareholder participates in the nominal share capital of the stock corporation.
Twenty percent of the issue volume of a federal bond is offered to the auction participants in a non-competitive process. The price equals the average rate of the competitive allotments. The claim of the individual auction bank is based on the weighted average of the competitive allocations (in percentage) of the previous two auctions and on established secondary market criteria.
Marketable risk are in a country inside the EU and the OECD that lasts less than two years (see marketable risk). All other risks are considered non-marketable and can be covered by government credit insurance.
Here you can find further information:
Private Credit Insurance
OECD Arrangement on Officially Supported Export Credits
The OECD Arrangement is an agreement at a governmental level to prevent distortions of competition resulting from state support for export credits. It regulates publicly supported insurance, guarantees, direct export credits or refinancing with maturities of at least two years as well as tied aid credits. The arrangement is legally binding for the member states of the EU.
Here you can find more information on the OECD Arrangement:
OECD Country Category
The OECD classifies countries for political risk insurance for medium and long-term export credits in categories from 0 (low risk) to 7 (high risk). This risk assessment is based on the minimum premium, which is binding for all OECD export credit agencies.
Here you can find these classifications:
OECD Guidelines for Multinational Enterprises
The OECD Guidelines for Multinational Enterprises are government recommendations for responsible and lawful business conduct in foreign activities. They include social responsibility, disclosure of information, industrial relations, the fight against corruption, environmental protection, consumer interests, science and technology, competition and taxation.
OECD Guidelines for Multinational Enterprises (OECD website)
OeMAG is the Austria-wide processing center for subsidized green electricity. OeMAG's tasks include the acceptance of green electricity from plant operators, the daily allocation of green electricity to electricity traders and the offsetting of green electricity subsidies.
OTC is the acronym for "over the counter" and refers to over-the-counter trading between capital market participants.
Par Value Share
The par value share (or per value share) represents a share of the share capital of a stock corporation over a fixed nominal value. Par value shares of a company may have different denominations, while no par value shares all have the same share in a company.
Paying agents are banks that handle all the ongoing transactions of a security, such as the redemption of dividends and interest coupons due.
Pension funds are financial service providers that implement pension commitments on behalf of companies. Under state supervision, they ensure that company pensions are saved and paid out as an important second pillar of the Austrian pension system. This supplementary pension is not financed according to a pay-as-you-go system, but is saved individually for each beneficiary under a capital cover system. The paid-in capital is invested, under state supervision, on the capital markets.
In the financial sector, performance refers to the performance of invested assets over a given period of time. This performance is calculated using standardized methods.
A single instrument identifies existing securities that are presented in printed documents. In contrast to collective and interim collection certificates that are stored centrally.
A performance bond is a surety bond that covers the risks of a contract not being fulfilled.
A pre-mixed credit is a soft loan equal to 100% of the project value to be funded. The "pre-mixed credit" is characterized by a low, government-supported interest rate, a grace period and a long repayment period.
Here you find detailed information on soft loans:
Soft Loan - Concessional financing
A preliminary commitment is a conditional commitment to give a guarantee for a deal that is still under negotiation. This commitment contains the basic terms of the future guarantee and has already been audited by OeKB and approved by the advisory board. If neither the terms of the contract nor the classification of the destination country worsen during the negotiations, the preliminary commitment will be converted into a guarantee upon conclusion of the contract without further request or examination.
A written promise made by the issuer of a bill to pay the amount owed to the holder of the bill at an agreed upon time.
The record date is the decisive date for a shareholder to exercise their voting rights at the Annual General Meeting. A shareholder is a person who has provided proof of shareholding on the record date. In Austria, the record date is the 10th day before the day of the Annual General Meeting.
A registered security is a security that is held in the name of the shareowner. The opposite of this is a bearer security.
Revolving Credit Facility
In the case of revolving financing, refinancing funds may be used on a revolving basis during the term of the contract - also in instalments. Revolving means that funds already repaid within the granted credit line can always be reused.
Second Key Test (Availability of Funds)
The second key test is an instrument in soft loan allocation, which will be used to determine if financing would be available on commercial terms for the project in question in other OECD countries. If this is not the case, a project qualifies as a soft loan. Prior to this test, the first key test is performed to assess whether or not a project is soft loan eligible.
Securities are instruments in which private rights to assets are securitized. These rights are tied to certifications. To assert them these certifications must be submitted.
Settlement is the fulfilment of securities transactions in the form of money and units by booking on the securities account. It is the act in which the custody of the transferor and the custody of the receiver is charged or recognized. Settlement takes place after clearing.
In a share split, the outstanding shares of a company are replaced by a higher number of new shares. As the number of shares increases, the price of the stock is reduced.
Silent Purchase of Receivables
In the case of a purchase of receivables, the principal bank buys outstanding receivables from the importer and thereby assumes the risk of payment default. A silent purchase of receivables is when the customer is not informed that the claims against him were sold to a bank.
Soft loans (or concessional financing) are financings that have a concessionality level of at least 35% and are made available to Austrian companies for projects in developing countries.
Here you find further information on soft loans:
Soft Loan - Concessional financing
Solvency refers to the extent to which banks and insurance companies are provided with funds (equity). The higher the solvency, the better the customer's payment claims are secured.
Special Drawing Right (SDR)
Special Drawing Right (SDR) is an international means of payment created by the members of the International Monetary Fund (IMF) in 1969. As a kind of artificial currency, SDRs are cashlessly transferred to IMF accounts. SDRs are part of the currency reserves of a country and can be exchanged for other currencies. However, they are not traded on the foreign exchange market. If there is a need for additional liquidity, the IMF Board of Governors can allocate further SDRs to the member states. Based on a currency basket of determinable weighted shares of relevant world currencies, the value of the SDR is re-calculated daily and published on the IMF's website.
Spillover effects describe positive or negative effects of a sales, company or economic policy tool beyond the specified target range.
On a spot market (also cash market), the supply and demand of commodities and cash meet. A mutual fulfilment period of up to three trading days is usual. Everything beyond that is added to the futures market.
The term "starting point" denotes the beginning of something, for example the beginning of a loan term.
Stock in Commission
Stock in commission is the stock of an exporter abroad.
Find out how to cover your stock in commission abroad here:
Stock in commission Guarantee
Stock rescheduling refers to the new regulations on total debt, as it occurs in special rescheduling cases according to the Paris Club.
More about the Paris Club can be found on this page:
Straight Through Processing (STP)
STP is the acronym for "Straight Through Processing" and is a concept of automated data processing. With STP in use since the 1990s, money and securities transactions can be processed and completed on the same day.
The straight-through processing rate (STP rate) indicates how much of a process's transactions can be processed fully automatically. Increasing the STP rate leads to improved efficiency as manual process steps decrease.
During stripping, interest coupons are separated from the investment wallet (nominal value) of a bond. Subsequently, the coverage and the individual interest coupons can be traded separately as zero bonds (Zero Coupon Bonds).
Here you can find more information on strips:
Supplier credit means the term of payment that a seller grants to a buyer. A supplier credit is also referred to as a trade credit or a commercial credit.
Here you can find more information on supplier credit:
Sustainable Lendings are publicly supported export credits that should be allocated responsibly and contribute to the sustainable social and economic development of the recipient country. To strengthen this idea, the OECD Export Credit Group has adopted principles and guidelines for the award of publicly supported export credits to public purchasers in low-income countries.
Principles and Guidelines: Sustainable lending
SWIFT stands for "Society for Worldwide Interbank Financial Telecommunication" and is a cooperative that develops and operates a standardized, secure system for exchanging financial information. Since 1973, SWIFT has also operated in the telecommunications network through which financial news is encrypted.
We offer our customers professional SWIFT services. Here you can find more information on SWIFT Services:
Temporary Global Certificate
A temporary global certificate is a security that temporarily represents equitable securities of the same category according to their terms. There is no entitlement to individual certificates. Intercompany deeds simplify administration and safekeeping.
A tender award is when a company has been awarded a contract for a tendering process. Tender procedures are of particular importance for the allocation of soft loans and projects financed by IFIs.
Here you find more information in soft loans:
Soft Loan - Concessional financing
The term “third-country content” refers to supplies or services delivered by third countries. From an Austrian point of view, third countries are all countries except the destination country and Austria. Export liabilities are, essentially, intended to support the Austrian economy. Therefore, foreign content may not exceed a certain level.
TXT is a file format for text files. TXT files consist of a sequential sequence of displayable characters, which can be subdivided by control characters such as line and page breaks. Other common formats in data exchange are CSV and XML.
By up-front we mean the payment of the guarantee fee in advance. The fee will already be paid in full at the issuing of the export guarantee.
Volatility refers to the fluctuation range of a price development. It is a risk indicator that shows the intensity with which a financial investment fluctuates over a certain period of time.
In the case of pension funds, the volatility is only shown when 36 observation months have been reached.
The volatility of pension funds and other key figures can be found here: Key Pension Fund Figures
Weighted Average Life (WAL)
The weighted average life (WAL) of a loan is calculated based on its maturity and repayments. The weighted average maturity is the calculated period during which the entire loan has not yet been repaid.
Weighted Average of Competitive Prices
In federal auctions, the bids in the competitive process differ by the amount and volume offered. The weighted average of competitive prices takes into account both parameters.
Find out more about federal loan auctions here:
Federal loan auctions for the Republic of Austria
XML (Extensible Markup Language)
XML is the acronym for Extensible Markup Language and refers to a machine-readable file format that contains hierarchically structured data in a text file and has significance in automated data exchange. Other popular formats are TXT and CSV.
Z (only in German)
Zahlstellen sind Banken, die alle laufenden Transaktionen eines Wertpapiers, beispielsweise die Einlösung fälliger Dividenden- und Zinskupons, abwickeln.
Ein Zentralverwahrer ist eine Wertpapiersammelbank (Englisch: „Central Securities Depository“), die im Auftrag von Kreditinstituten die Sammelverwahrung von Wertpapieren übernimmt. Über diese Wertpapiere kann mit Anweisung verfügt werden (Girosammelverwahrung). In Österreich erfüllt die OeKB CSD GmbH diese Aufgaben.
Ein Zinskupon ist der Abschnitt eines Wertpapieres, der zur Einlösung eines Zinses berechtigt.
Eine Zwischensammelurkunde ist ein Wertpapier, das vertretbare Wertpapiere derselben Kategorie nach deren Bedingungen vorübergehend vertritt. Es besteht kein Anspruch auf Einzelurkunden. Zwischensammelurkunden vereinfachen die Verwaltung und Verwahrung.