AGCS
The Austrian gas market is divided into different areas. In each area a central clearing agency is responsible for the pricing and settlement of balancing gas.
AGCS Gas Clearing and Settlement AG (AGCS) is the clearing agency in the balancing area Ost.
AGCS website

AGM
Annual General Meeting

APCS
The Austrian electricity market is divided into different areas. In each area a central clearing agency is responsible for the pricing and settlement of balancing electricity.
APCS Power Clearing and Settlement AG (APCS) is the clearing agency for balancing energy in the Verbund Austrian Power Grid (APG) balancing area.
APCS website

Balancing area Ost (gas market)
A balancing area describes the smallest unit of a network system that is equipped with and operated by a frequency power regulator. The balancing area Ost contains all Austrian provinces except Tyrol and Vorarlberg.

Balancing energy
Electricity that is used to balance supply and demand in the electric power grid.

Balancing gas
Gas that is used to balance supply and demand in the gas market.

Balancing group
Suppliers and consumers are merged in a virtual group to balance the feed-ins and take-offs of electrical energy. Each market participant has to join a balancing group to deliver/obtain energy.

Balancing group coordinator (BGC)
A person or legal entity that is responsible for price formation and settlement of balancing energy within a balancing area.

Balancing group representative (BGR)
The balancing group representative represents a balancing group over other market participants.

Batch
A batch file contains a set of data records, which can be processed in a single step by a computer. OeKB sends master and maturity data as a batch file if requested. Batch files may contain data in various formats: TXT, CSV, XML

Bearer security
A security whose owner's name is not registered. The ownership of such securities is transferable by simply handing over. In contrast to registered securities.

Berne Union (BU)
Berne Union (BU) is the International Union of Export Credit and Investment Insurers.
Berne Union website

Berne Union Guiding Principles
The Guiding Principles are general guidelines on best practices for the Members of the BU. More on the Agreements of the BU

Bid bond
A bid bond is issued as part of a bidding process by the surety to the project owner, to guarantee that the winning bidder will undertake the contract under the terms at which they bid.
The cash deposit is subject to full or partial forfeiture if the winning contractor fails to either execute the contract or provide the required performance and/or payment bonds. The bid bond assures and guarantees that should the bidder be successful, the bidder will execute the contract and provide the required surety bonds.

Buyer's credits
A financial arrangement in which a bank or financial institution - or an export credit agency in the exporting country - extends a loan directly to a foreign buyer or to a bank in the importing country to pay for the purchase of goods and services from the exporting country. It is also known as financial credit. This term does not refer to credit extended directly from the buyer to the seller (e.g., through advance payment for goods and services).

Capital yields tax
Capital yields tax is an Austrian withholding tax on investment income. In German it is called "Kapitalertragsteuer" or "KESt".

CCP.A
Central Counterparty Austria (CCP.A) acts as clearing agent under section 26 (3) of the Stock Exchange Act and ensures the secure and reliable clearing and settlement of eligible exchange transactions. CCP.A is the central counterparty for all trades transacted on Wiener Börse (both on the spot market and derivatives market).
Owned in equal parts by Wiener Börse AG and Oesterreichische Kontrollbank AG, the company has been operating since 2005.
Central Counterparty Austria (CCP.A) website

Central Securities Depository (CSD)
A central securities depository is responsible for the collective deposit of securities that are deposited by financial institutions. In Austria this tasks are undertaken by CSD.Austria.

Certificate of origin
A certificate of origin (often abbreviated to CO or COO) is a document used in international trade. It traditionally states from what country the shipped goods originate, but "originate" in a CO does not mean the country the goods are shipped from, but the country where the goods are actually made. This raises a definition problem in cases where the raw materials and processes and added value are not all from one country. An often used practice is that if more than 50 % of the costs of producing the goods originate from one country, that country is acceptable as the country of origin (then the "national content" is more than 50 %). In various international agreements, other percentages of national content are acceptable.

CIRR
Commercial Interest Reference Rate. The minimum fixed interest rate defined in the OECD Arrangement for which official support can be granted on export credits to the extent that the CIRR does not cover the lender's funding costs. In the EURO zone one single CIRR applies. The EURO CIRR is based on excellent EURO bond yields. The CIRR is published on the OECD website. CIRRs are set on the 15th of each month and valid until the 14th of the following month.

Clearing
In banking and finance, clearing denotes all activities from the time a commitment is made for a transaction until it is settled. Clearing is necessary because the speed of trades is much faster than the cycle time for completing the underlying transaction.
Processes included in clearing are reporting/monitoring, risk margining, netting of trades to single positions, tax handling and failure handling.

Collection
Referring to securities, collection stands for collection of receivables. For coupon and principal payments, this means that the redemption amount of matured securities is requested from the paying agent.

Collective custody
The safekeeping of securities of the same category, done by CSD.Austria or one of its custodians.

Competitive bidding
The auction participant specifies a bid constisting of the price and the nominal amount.
The submitted bids are ranked according to price in descending order. The allotment of bonds is carried out based on the corresponding prices bid.
More on competitive bidding

Concessionality level
The concessionality level is a measure of the "softness" of a credit reflecting the benefit to the borrower compared to a loan at market rate.

Corporate Action
A corporate action is an event initiated by a company affecting the securities issued by the company, including mandatory (e.g. stock splits, mergers) and voluntary (e.g. tender offer) actions, yields and redemption, and the annual general meeting.

Coupon
The coupon entitles the securities holder to receive the payable earnings or exercise certain rights.

Credit analysis
Credit analysis is the method by which one calculates the creditworthiness of a business or an organisation.

CSD.Austria (Central Securities Depository.Austria)
Since 1965 OeKB has operated Wertpapiersammelbank, the Austrian Central Securities Depository. CSD.Austria manages and holds physical securities in conformity with the latest standards.
more about CSD.Austria

CSV
The comma-separated values file format is a set of file formats used to store tabular data in which numbers and text are stored in plain textual form that can be read in a text editor. Lines in the text file represent rows of a table, and commas in a line separate what are fields in the table's row.

Data vendors
Companies that sell current and professionally processed price and market data and other financial information to capital market participants (other vendors, professional investors and to private investors)

Debt rescheduling
A debt rescheduling settles claims towards a debtor country due within a certain period by extending the repayment over a longer period.

Debt stock rescheduling
Restructuring of the entire stock of debt of a debtor country

de-minimis projects
Projects with a contract value below 2 million SDR (Special Drawing Rights)

Depositary bank / Custodian bank
A bank that keeps assets or securities under custody on behalf of a client.

Derivative
A derivative is a financial instrument whose value depends on other, more basic, underlying variables. Such variables can be the price of another financial instrument (e.g. the underlying asset), interest rates, volatilities, indices, etc. There are many kinds of derivatives, with the most common being swaps, futures and options. Derivatives are a form of alternative investment.

Derivatives market
The derivatives market is the financial market for derivatives, financial instruments like future contracts or options, which are derived from other forms of assets.
Transactions must be fulfilled by the contractor within an agreed period of at least three trading days after the transaction. Transactions with a shorter fulfilment deadline will be attributed to the cash or spot market.

DS.A
DS.Advanced is OeKB's online system for OTC settlement. Orders for settlement of OTC transactions can be submitted via online client or SWIFT. The status of the transactions is also displayed on the online client and, optionally, forwarded in real time via SWIFT.

EACH
EACH (European Association of CCP Clearing Houses) was formed in 1991 by European central counterparty clearing houses. EACH's participants are senior executives specialising in clearing and risk management from European CCPs, both EU and non-EU. EACH has an interest in ensuring that the evolving discussions on clearing and settlement in Europe and globally, are fully informed by the expertise and opinions of those responsible for providing central counterparty clearing services.
EACH's website

ECA
Export Credit Agency

ECSDA
ECSDA (European Central Securities Depositories Association) is the European trade association representing CSDs. ECSDA's objective is to provide solutions and advice on international level about technical, economic, financial, legal and regulatory matters. This reduces risk and increases efficiency in custody, pre-settlement and settlement arrangements for securities and related payments across Europe for the benefit of issuers, investors and market participants.
ECSDA website

Equity financing
Financing for foreign investments. A means of self-financing using equity or a shareholder loan to gain capital.

EU Directive 98/29/EC
In 1998 the EU agreed on a directive with the aim of harmonising medium- and long-term export credit insurance.
COUNCIL DIRECTIVE 98/29/EC at http://eur-lex.europa.eu

EURIBOR
The Euro Interbank Offered Rate (EURIBOR) is a daily reference rate based on the averaged interest rates at which banks offer to lend unsecured funds to other banks in the EURO wholesale money market (or interbank market).
A representative panel of 57 banks provide daily quotes of the rate, rounded to two decimal places, that each panel bank believes one prime bank is quoting to another prime bank for interbank term deposits within the EURO zone, for maturity ranging from one week to one year. The published rate is a rounded, truncated mean of the quoted rates: the highest and lowest 15 % of quotes are eliminated, the remainder are averaged and the result is rounded to 3 decimal places.

EURIBOR was first published on 30 December 1998 for value 4 January 1999.

EXAA Energy Exchange Austria
Energy Exchange Austria (EXAA) is an electronic marketplace for electricity trading. EXAA has appointed OeKB to execute financial clearing, risk management and credit assessments.
EXAA website

Financial non-viability
Projects which lack capacity to generate cash flow sufficient to cover the projects operating costs and to service the capital employed are financially non-viable.
With soft loan projects, financial viability is checked in the First key test.

FIX
The Financial Information eXchange ("FIX") Protocol is a series of messaging specifications for the electronic communication of trade-related messages. It has been developed through the collaboration of banks, broker-dealers, exchanges, industry utilities and associations, institutional investors and information technology providers from around the world.

Framework agreement
Agreements on financial cooperation with selected soft loan recipient countries agreed upon by the Republic of Austria, represented by the Federal Minister of Finance, and the respective countries. Usually, the agreements are valid for two years.

FundsXML
FundsXML is an internationally standardised format for the exchange and transfer of fund data for investment companies.

Global certificate
One single certificate representing the total emission of securities of one class. There is no entitlement to a physical security. Global certificates facilitate administration and custody.

Government Bonds
Bonds issued by the Austrian Treasury (OeBFA) on behalf of the Republic of Austria to secure the government's funding at all times and at the lowest possible cost - over the medium to long term - while avoiding excessive risk. Oesterreichische Kontrollbank AG acts as the sole auction agent using the electronic auction system ADAS.
more on government bonds
OeBFA website

Grant
A financial aid that does not have to be payed back

Guarantee premium
Individually tailored fees for export guarantees, depending on the risks covered. For export credits with a repayment period of 2 years or more the OECD minimum premium benchmarks apply to the political risk premium.

HIPC countries
heavily indebted poor countries
list of HIPC countries on the World Bank website

International Financial Institutions (IFIs)
International Financial Institutions are

  • World Bank of IMF
  • regional development banks (e.g. EBRD or ADB)
  • regional development funds (e.g. International Fund for Agricultural Development - IFAD)

IFIs provide financial and technical assistance to developing countries which have no or only limited access to financial facilities from private sources.

ISIN
An International Securities Identification Number (ISIN) is an alphanumeric, twelve digit code. The assignment of an ISIN guarantees that a security can be identified uniquely worldwide. In Austria, OeKB as National Numbering Agency is responsible for assigning ISINs.
An ISIN consists of a prefix (representing the two-letter country abbreviation, e.g. AT for Austria), base number and check digit.

Issuer
An issuer is the legal entity that develops, registers and sells securities to finance its operations, e.g. government, corporations and investment trusts.

Kontrollbank Credit Line (KCL)
known as Kontrollbank-Refinanzierungsrahmen (KRR) in German. The financing scheme is available for non-SMEs to finance export contracts. Basis for KCL are export bills of exchange by aval guaranteed by the Republic of Austria with a maturity of less than two years.

LEI (Legal Entity Identifier)
The LEI is a unique code that is assigned to legal entities that are counterparties to financial transactions worldwide.
more on the LEI

Letter of credit
A standard, commercial letter of credit (LC) is a document issued mostly by a financial institution. It is used primarily in trade finance and provides an irrevocable payment undertaking.

Marketable risks
Commercial and political risks arising from export transactions with a risk period (manufacturing and repayment) of less than two years and counterparties in an EU or OECD country, except Chile, Israel, Mexico, South Korea and Turkey.

Mixed credit
A financing package consisting of a non-refundable grant and a soft loan

Multi-source project
Sharing risks in large scale projects involving Export Credit Agencies, international financial institutions and commercial banks.

Netting
For securities transactions which are handled by a central counterparty, delivery and payment obligations are set off against each other continuously. Due to the netting of the opposing receivables, the number of the handled securities transactions is reduced considerably.

Non-competitive bidding
With government bond auctions, 20 % of the issue amount is made available to the participants for the submission of non-competitive bids.
The allotment of the non-competitive bids is executed at the average price of the accepted competitive bids. The individual amount of non-competitive bids for each bank must not exceed a certain percentage - corresponding to each bank's market share (i.e. the weighted average of the competitive allotments as expressed in percent) of the previous two auctions and predefined secondary market criteria - of the non-competitive issue size.
More on non-competitive bidding

Non-marketable risks
All other than marketable risks

OECD country risk categories
The OECD classifies countries into eight risk categories ranging from 0 (low risk) to 7 (high risk). The country risk categories determine the minimum premium rates for political risk, which OECD ECAs have to adhere to.

OECD Guidelines for Multinational Enterprises
The Guidelines are recommendations addressed by governments to multinational enterprises operating in or from adhering countries. They provide voluntary principles and standards for responsible business conduct in a variety of areas including employment and industrial relations, human rights, environment, information disclosure, combating bribery, consumer interests, science and technology, competition and taxation.
Guidelines on OECD website

OeMAG - Green Electricity Settlement Austria
OeMAG is responsible for the clearing and settlement of green electricity subsidies from the three balancing area managers in Austria. The responsibilities of OeMAG include taking delivery of green electricity from plant operators, the daily allocation of green electricity to power traders and the charging of subsidised green electricity.

OTC
Over-the-counter (OTC) trading means to trade financial instruments directly between two parties not involving a stock exchange.

Paying agent
Paying agents are banks, who process all ongoing transactions concerning physical securities such as the funding of dividends and interest payments.

Percentage of cover
The percentage of a loss borne by the guarantor

Physical securities
Securities that are represented in paper form. Unlike (temporary) global certificates.

Prague Club
The Berne Union Prague Club is an information exchange network for new and maturing insurers of export credit and investment. The members have not met the requirements for full Berne Union membership yet.
Prague Club website

Pre-mixed credit
A loan for 100 % of the refinanced project value with a low interest rate, a grace period and long repayment terms.

Registered security
Securities whose owner's name is registered. In contrast to bearer securities.

Revolving credit facility
A revolving credit arrangement allows you to borrow up to your credit limit without having to re-apply each time you need cash. As you repay the money you have borrowed, it is available to be borrowed again.

Securities
Certificates that entitle the holder to exercise rights when holding the security.

Securities Reference Data - Master and maturity data
Securities Reference Data are devided into master and maturity data.
Master data are basic static data of securities, e.g. name of the issuer. Maturity data are dynamic data of securities, e.g. the exchange ratio or a variable interest rate.

Share split
A split reduces the par value of each share, but increases the number of shares by the same proportion.

Soft loans
Concessional financing. Loans made on concessional (i.e. preferential) terms either in the form of low interest (below market rate), long repayment periods and amortisation grace periods, or combinations of concessional and commercial loan financing with a non-repayable grant portion.

Special Drawing Rights
The SDR (Special Drawing Rights) is an international reserve asset, created by the IMF in 1969 to supplement its member countries' official reserves. Its value is based on a basket of four key international currencies, and SDRs can be exchanged for freely usable currencies.

Spillover effects
Spillover effects are positive or negative impacts of economic activity on the geographic, demographic and commercial environment (such as effects on suppliers, the region, development partners) upon those which are not directly involved in it.

Spot market
The spot market or cash market is a public financial market, in which financial instruments or commodities are traded for immediate delivery. A fulfilment deadline of up to 3 trading days is common.
Transactions that extend beyond this period attributed to the derivatives market.

STP rate
The Straight-Through-Processing rate (STP rate) describes the percentage of transactions in a process that is handled automatically. An increase of the STP rate results in an improved efficiency since there are less manual processing steps.

Strip-Programme
Procedure of seperating the coupon from the principal. Afterwards, the created zero coupon bonds can be traded separately.

STRIPS
STRIPS - Separate Trading of Registered Interest and Principal Securities

Sustainable lending
Guidelines promote sustainable lending practices in the provision of officially supported export credits to low-income countries, i.e. lending that supports a borrowing country's economic and social progress without endangering its financial future and long-term development prospects.
OECD Guidelines for Sustainable lending

SWIFT
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) is a member-owned association which cooperates with international organisations to define standards for message format. SWIFT has become the industry standard for syntax in financial messages.
SWIFT website

Tied aid credit
A tied aid credit is an officially supported export credit. Tied aid credits are restricted to the export of mainly goods and services of the donor country.

TXT
A file is referred to as text file (.TXT) when its content consists of a sequence of presentable characters that are separated by line and page breaks. Further current formats: CSV, XML
Up-front
"Up-front" describes a method of paying. The whole premium for a guarantee has to be paid in advance.

Verbund Austrian Power Grid (APG) balancing area (energy market)
A balancing area describes the smallest unit of a network system that is equipped with and operated by a frequency power regulator. The APG balancing area contains all Austrian provinces.

XML
XML is an abbreviation for extensible markup language that is a standardised format for the illustration of hierarchically structured data as XML-schema. Further current formats: TXT, CSV