Page 5 - PRIAA Glossary

AFRAMAX
A medium-sized oil tanker of approximately 80,000 to 120,000 deadweight tons, normally used to carry crude oil or dirty petroleum products. Aframaxs with coated cargo tanks are used to carry clean petroleum products in longer haul trade routes.
AGENCY FOR THE COOPERATION OF ENERGY REGULATORS (ACER)
The main regulatory body for energy market integration
and harmonisation on a European level. It supports the cooperation among European energy regulators with the overall aim to establish a more transparent and competitive market environment with the ultimate goal to create a single European market environment for the European energy sector. Apart from increasing market transparency, its main responsibility is market monitoring and the prevention of abusive practices in the market.
AGENCY MBS TBA (TO BE ANNOUNCED)
A forward based on mortgage backed securities in which the specific security to be delivered is not known until just before the settlement deadline.
ALLOCATION
The process by which a block trade is executed by an asset manager and is then divided (allocated) to individual funds (or sub-funds) managed by that asset manager. Each individual trade requires confirmation.
ALPHA
The outperformance of an investment relative to its benchmark. It is also the dependent variable when an investment is regressed against the market or a benchmark.
ALTERNATIVE INVESTMENT FUND MANAGERS DIRECTIVE (AIFMD)
A directive by the European Union (EU) to regulate EU fund managers who are managing alternative investments such as private equity and hedge funds. The goal of these regulations is to prevent another financial crisis.
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