Page 59 - PRIAA Glossary

EMISSION REDUCTION UNIT (ERU)
A measure of carbon dioxide emissions. One ERU equates to one metric tonne of carbon dioxide and is the unit used to measure CO2 emissions for participants of the Joint Implementation (JI) scheme within the Kyoto Protocol.
EMISSIONS TRADING
A market in the trading of polluting emissions allowances. The market has emerged from the binding commitments of the Kyoto Protocol and the European Union Emissions Trading Scheme (EU ETS).
ENCUMBERED RATIO
Part of encumbered reporting enjoined by the European Banking Authority (EBA). Financial institutions have to report the ratio of encumbered to unencumbered assets for both face and fair value separated per asset class. Thereby, current and potentially encumbrance is taken into account.
END USER EXCEPTION
A Dodd-Frank Act exception that absolves non-financial entity end-users from the Dodd Frank clearing mandate so that the entity may partake in hedging commercial risk.
ENHANCED PRUDENTIAL STANDARDS (EPS)
The standards specified in the Regulation YY Enhanced Prudential Standards rules which were recently finalised
by the Federal Reserve Board as required by section 165
of the Dodd-Frank Act. The standards include risk-based capital and leverage requirements, liquidity standards, requirements for overall risk management, stress test requirements and a debt-to-equity limit. The standards will be applied to companies that the Financial Stability Oversight Council has determined pose a grave threat to financial stability including bank holding companies and foreign banking organisations.
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