Page 92 - PRIAA Glossary

INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION (ISDA®)
The global trade association which represents more
than 82 participants in 57 countries in the over-the-counter (OTC) derivatives industry. ISDA looks to provide governance and standardisation globally across all OTC derivatives asset classes.
INTERPOLATION (LINEAR INTERPOLATION)
A method of estimating an unknown price or yield of an underlying. This is achieved by using other related known values that are located above and below the unknown value.
INTERRUPTIBLE SERVICE
Gas or electricity sold on the understanding that the supplier retains the right to interrupt supply for a specified number of days or hours during times of peak demand or in the event of system emergencies. In exchange for granting the right to be interrupted, buyers pay lower prices.
INTERWEAVEMENT ELIGIBILITY
A collateral eligibility check which ensures that a parent company does not offer shares of its child company as collateral or vice versa.
IN-THE-MONEY
An option position where the option holder benefits from the difference between the strike price and the current market price of the underlying. A call option is in-the-money if the current market price is higher than the strike. A put option is in- the-money if the current market price is lower than the strike.
INTRAGROUP EXEMPTION
Exemptions provided by European Market Infrastructure Regulation (EMIR) for intra-group transactions from the clearing and margining rules. These exemptions are subject to prior notification to, or authorisation by, the competent authorities.
90