Glossary

AAD
Adjoint algorithmic differentiation
AIG
American International Group
AIP
Auction incentive pools
ALM
Asset-liability management
AMC
American Monte Carlo
ASF
Available stable funding
ATM
At-the-money
AVA
Additional valuation adjustment
ATE
Additional termination event
Basel III
Basel III International Banking Regulatory Framework
BA-CVA
Basic CVA
BCBS
Basel Committee on Banking Supervision
BCVA
Bilateral CVA
BMR
Bilateral margin requirements
BRIC
Brazil, Russia, India, and China
CAPM
Capital Asset Pricing Model
CBOT
Chicago Board of Trade
CC
Capital cost
CCAR
Comprehensive Capital Analysis and Review
CCP
Central counterparty
CCR
Counterparty credit risk
CDS
Credit default swap
CDO
Collateralised debt obligation
CEEMEA
Central and Eastern Europe, Middle East and Africa
CE
Current exposure
CEM
Current exposure method
CET1
Common Equity Tier 1
ColVA
Collateral valuation adjustment
CLS
Continuous linked settlement
CME
Chicago Mercantile Exchange
ColRA
Collateral received adjustment
ColPA
Collateral posted adjustment
CRD IV
Capital Requirements Directive IV
CRIF
Common Risk Interchange Format
CSA
Credit support annex
CVA
Credit value adjustment
Dodd-Frank
Dodd–Frank Wall Street Reform and Consumer Protection Act
D-SIB
Domestic systemicallyimportant bank
DVA
Debt value adjustment
EAD
Exposure at default
EBA
European Banking Authority
ECB
European Central Bank/Expected collateral balance
ECP
Expected capital profile
EE
Expected exposure
EEE
Effective expected exposure
EFV
Expected future value
EIM
Expected initial margin
EMIR
European Market Infrastructure Regulation
ENE
Expected negative exposure
EPE
Expected positive exposure
EEPE
Effective expected positive exposure
ES
Expected shortfall
EU
European Union
EURIBOR
Euro Interbank Offered Rate
EWMA
Exponentially-weighted moving average
FAS
Financial Accounting Standards
FASB
Financial Accounting Standards Board
FBA
Funding benefit adjustment
FCA
Funding cost adjustment
FHS
Filtered historical simulation
FMI
Financial market infrastructure
FRTB
Fundamental Review of the Trading Book
FSB
Financial Stability Board
FTP
Funds transfer pricing
FVA
Funding value adjustment
FX
Foreign exchange
G7
Group of Seven Countries (Canada, France, Germany, Great Britain, Italy, Japan, and the US)
G20
Group of Twenty Countries (Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom, and the US. The European Union is also a member)
GAAP
Generally Accepted Accounting Principles
GFC
Global financial crisis
GPU
Graphical processing unit
G-SIB
Globally-systemically-important bank
G-SIFI
Globally-systematically-important financial institutions
HBOS
Halifax Bank of Scotland
HVAR
Historical value-at-risk
HQLA
High-quality liquid asset
IAS
International Accountancy Standards
IASB
International Accounting Standards Board
IBOR
Interbank Offered Rate
IFRS
International Financial Reporting Standards
IM
Initial margin
IMA
Internal model approach
IMM
Internal model method
IRB
Internal ratings-based (approach)
IRR
Internal rate of return
IRS
Interest rate swap
ISDA
International Swaps and Derivatives Association, Inc.
JTD
Jump to default
KVA
Capital value adjustment
LCR
Liquidity coverage ratio
LGD
Loss given default
LHP
Large homogeneous pool
LIBOR
London Interbank Offered Rate
LSOC
Legally separated; operationally commingled
LR
Leverage ratio
MDB
Multilateral development bank
MTA
Minimum transfer amount
MVA
Margin value adjustment
MTM
Mark-to-market
MPoR
Margin period of risk
NCB
Negative collateral balance
NDF
Non-deliverable forward
NEE
Negative expected exposure
NGR
Net gross ratio
NSFR
Net stable funding ratio
OSFI
Office of the Superintendent of Financial Institutions
OIS
Overnight indexed spread
OTC
Over-the-counter
P&L
Profit and loss
PAI
Price alignment interest
PAIRS
Portfolio Approach to Interest Rate Scenarios
PCA
Principal component analysis
PCB
Positive collateral balance
PD
Probability of default
PFE
Potential future exposure
PVP
Payment versus payment
ROC
Return on capital
ROE
Return on equity
QCCP
Qualifying CCP
QIS
Quantitative impact study
RFR
Risk-free rate
RMBS
Residential mortgage-backed securities
RORAC
Return on risk-adjusted capital
RSF
Required stable funding
RWA
Risk-weighted asset
SA-CCR
Standardised approach for counterparty credit risk (regulatory capital)
SA-CVA
Standardised CVA
SEF
Swap execution facility
SIFI
Systemically-important financial institution
SIMM
Standard Initial Margin Model
SLR
Supplementary leverage ratio
SME
Small and medium-sized enterprise
SPAN
Standard Portfolio Analysis of Risk
SPV
Special purpose vehicle
SSAs
Sovereigns, supranationals, and agencies
STM
Settle-to-market
TLAC
Total loss-absorbing capital
TLP
Term liquidity premium
TMT
Technology, media, and telecommunications
UCVA
Unilateral CVA
US
United States
UMR
Uncleared margin requirements/rules
VAR
Value-at-risk
VMGH
Variation margin gains haircutting
WACC
Weighted average capital cost
WWR
Wrong-way risk
xVA
CVA, DVA, FVA, ColVA, MVA, KVA, LVA, etc.