Page 63 - PRIAA Glossary

EUROPEAN OPTION
An option that can only be exercised by the holder on the expiration date.
EUROPEAN SECURITIES AND MARKETS AUTHORITY (ESMA)
European regulatory authority that replaced the Committee of European Securities Regulators (CESR) in January 2011. ESMA contributes to the European Union financial system’s integrity and stability and will draft the regulatory standards for clearing and trade repository reporting of over-the- counter (OTC) derivatives products as mandated by the European Commission in EMIR.
EUROPEAN UNION ALLOWANCE (EUA)
Climate credits (or carbon credits) used in the European Union Emissions Trading Scheme (EU ETS). EU allowances are issued by the EU member states into member state registry accounts. By April 3 of each year, operators of installations covered by the EU ETS must surrender an EU allowance for each ton of CO2 emitted in the previous year.
EUROPEAN UNION EMISSIONS TRADING SCHEME (EU ETS)
Measures aimed at controlling and reducing emissions of carbon dioxide from member states, with additional potential to regulate a further five greenhouse gases. Established by an EU Council Directive in 2003, the measures set legally binding emission targets for governments to achieve with a view to increasing the use of renewable energy across the EU.
EVENT DETERMINATION DATE (EDD)
The date on which the credit event notice and notice of publicly available information are delivered by the notifying party in order to trigger the settlement of a credit derivative transaction. The ISDA Determinations Committee now publishes its decisions as to the common EDD for credit events which they have determined to have occurred.
EVENT OF DEFAULT
A set of prescribed events in a trade agreement between two counterparties that trigger a demand of payment by the non-defaulting party by giving notice to the defaulting party. An event of default might be a breach of contract or a pattern of late payments.
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