Page 141 - PRIAA Glossary

y = a + b x + b x + b x + ...+ b x + u 112233nn
For linear regression, y is the dependent variable, x is the independent variable, a is the y-intercept, b is the coefficient of x and u is the regression residual.
For multiple regression, xn is an independent variable, bn is the coefficient for the independent variable xn, and y, a and u have the same definitions are for linear regression.
REGULATION ON WHOLESALE ENERGY MARKET INTEGRITY AND TRANSPARENCY (REMIT)
Regulation that applies aspects of various financial industry mandates to wholesale energy products and related derivatives. Cornerstones of the regulation are the prohibition of insider trading, prohibition of market abuse, publication of insider information, reporting of transactions, reporting of fundamental data and the registration of market participants. In essence, there are two main reporting obligations. One
is the reporting of transparency data, i.e. planned power production and outages. The other is the reporting of transactions on the financial markets that are related to gas or power, which covers spot transactions, capacity contracts and derivatives relating to these contracts.
REGULATORY ASSETS UNDER MANAGEMENT
The market value of the assets that an investment company manages on behalf of investors. Also known as “assets under management (AUM)”.
REHYPOTHECATION
The ability of a broker, bank or custodian to use its clients’ collateral postings for its own trading purposes, generally with a margin of compensation.
REPO RATE
The implicit interest rate in a repurchase agreement (repo) that is based on time and the difference between the repurchase price and the original sale price.
Multiple Regression:
139
R