ABA routing number
American Bankers Association routing number – a nine digit code used to identify US banks when making payments.
Accounting date
The time frame for which a business prepares its financial statements and reports its financial performance. The financial year for the TreasurySpring Platform runs from 1 May to 30 April each year.
Administrator
The independent fund administrator for the TreasurySpring Platform is Summit Fund Services Jersey Limited. Under the Administration Agreement between Summit Fund Services Jersey Limited and the TreasurySpring Platform, Summit Fund Services Jersey Limited provide a wide range of services such as operational, AML and requisite regulatory authorisations and consents needed by the JFSC.
Alternative Investment Fund (AIF)
Defined by the AIFMD (see AIFMD) as a collective investment undertaking (including investment compartments thereof), which raises capital from a number of investors, with a view to investing it for the benefit of those investors in accordance with a defined investment policy; and which does not require authorisation under the UCITS Directive (see UCITS).
Alternative Investment Fund Managers Directive (AIFMD)
A European Union directive (2011/61/EU) that provides a regulatory framework for managers of Alternative Investment Funds (see AIF).
Anti-Money Laundering (AML)
The laws, regulations and procedures designed to detect and prevent money laundering, typically applicable to financial institutions and other regulated entities.
Articles
Articles of Association – available for each Cell and specify the rules that company officers must by law implement when running the Fixed Term Funds.
Asset-Liability Management
The practice of managing an institution's assets and liabilities together so that their timing, currency and interest-rate exposures remain coordinated, decreasing the risk of a mismatch between what is owed and what is available to pay it. Bank and corporate ALM teams are a core audience for maturity-matched cash investments such as Fixed-Term Funds (see Fixed-Term Funds).
Auditors
Ernst & Young LLP – reviews the accounts to ensure the validity and legality of financial records.
Auto-extend
The action of extending an eFTF on the Option Extension Date to the next Extended Redemption Date.
Auto-roll
The action of rolling an existing FTF into a new fund at maturity.
Bank Identifier Code (BIC)
Bank Identifier Code – an 8-11 digit code used to identify a specific bank when instructing payments, often used interchangeably with SWIFT code.
Bank of England (BoE)
Bank of England – the central bank responsible for managing monetary policy in the United Kingdom
Bank of Japan (BoJ)
Bank of Japan – the central bank responsible for managing monetary policy in Japan.
Basis point(s)
Basis point(s) (each equal to one hundredth of a percent) – quoted as an alternative to percentage points for prices and rates.
Bond
A fixed income instrument representing a loan made by an investor to a borrower for a set period of time (typically with a maturity of more than one year), in exchange for regular interest payments.
Business day
A day (excluding Saturday, Sunday and public holidays) on which banks generally are open for business in the City of London and Jersey for the transaction of normal banking business.
Call account
A bank deposit account that can be accessed on demand, without prior notice, usually paying a lower interest rate than a fixed-term or notice deposit in exchange for that immediate access. It sits alongside a notice account (see Notice account) as a source of instant, rather than scheduled, liquidity.
Cell Operating Procedures (COP)
Provides details of the procedures of the FTF lifecycle.
Central bank
A national financial institution providing financial and banking services to a country’s commercial banking system, often being responsible for a country’s monetary policy and issuing currency (where applicable).
Central Counterparty Clearing House (CCP)
Central Counterparty Clearing House – an institution helping facilitate trading in various derivatives, fixed income and equity markets, with two primary functions as an intermediary in the transaction: clearing and settlement.
Central securities depository
An institution holding financial instruments, enabling the transfer of ownership of those instruments in electronic form through updating electronic records (often known as ‘book-entry records’).
Certificateless Registry for Electronic Share Transfer (CREST)
Electronic settlement system for holding and transferring UK and Irish securities in electronic form.
Certificate of Deposit
Certificate of Deposit – a financial product commonly offered by banks providing an interest rate premium in exchange for the customer agreeing to leave a lump-sum deposit untouched for a fixed period of time.
Collateral
A basket of assets that a lender accepts as security for a loan with the goal to reduce credit risk. If the borrower defaults, the lender can sell the collateral to recover unpaid amounts.
Collective investment scheme
A method of pooling funds with other investors, typically in the form of a regulated fund.
Commercial paper (CP)
Usually issued by a bank or a corporate under a CP programme, commercial paper is a short-term negotiable debt instrument, typically with a maturity of less than 365 days.
Common reporting standard
A reporting requirement for financial institutions in participating countries/jurisdictions setting out financial account information to be exchanged between governments for the purpose of fighting tax evasion. Also see FATCA.
Constant Net Asset Value (CNAV)
Refers to a fund that aims to keep a stable price of €1/£1/$1 per share, typically used in money market funds. Since the EU MMF Regulation (EU) 2017/1131), only public (government) debt MMFs are permitted to operate in the EU as CNAV MMFs.
Convertible bond
A type of bond that can be exchanged into a specified number of shares of common stock in the issuing company when certain pre-defined criteria are met.
Corporate treasury management
The function within a business responsible for managing its cash, funding, financial risk and liquidity, including investing surplus cash, managing banking relationships and overseeing foreign exchange and interest rate exposure. Corporate treasury has increasingly moved from a back-office to a strategic function within the business.
Corporation Tax Act 2009
Provides guidance on the tax treatment for Fixed Term Fund holdings.
Counterparty
The other party that participates in a financial transaction.
Counterparty risk
The possibility of loss, resulting from the other party to a transaction’s failure to repay a loan or meet contractual obligations. Often used interchangeably with credit risk.
Covered bond
A form of debt security collateralised by a pool of assets (typically mortgage loans or public-sector debt) to which investors have a preferential claim in the event of default by the issuer.
Credit benchmark
A financial technology company that aggregates and anonymises credit risk estimates from market participants and offers insights into unrated sovereigns, funds, public and private companies and subsidiaries.
Credit Default Swap (CDS)
Credit Default Swap – a form of credit protection, by way of a financial derivative that binds the seller of the CDS to compensate the buyer in the event of a debt default or other credit event of the underlying company on which the CDS was written.
Credit rating agency
A company that assigns credit ratings, assessing a borrower’s ability to repay debt in time (see S&P, Moody’s and Fitch).
Credit risk
The risk of loss arising from a borrower’s inability to repay a loan or meet contractual obligations. Often used interchangeably with counterparty risk.
Custodian
A financial institution that offers safekeeping of customer assets in a (generally) bankruptcy-remote format.
Custodian account
TreasurySpring’s account at custodian institutions, holding securities for safekeeping.
Customer due diligence
Customer Due Diligence – the processes typically used by financial institutions to collect and evaluate relevant information about a (potential) customer, with the required information provided by the customer or by independent third-party sources.
Cut-off time
The time after which the maturity action cannot be changed.
Debt instruments
A broad term for any financial instrument representing a borrower's obligation to repay a lender, whether tradable, such as a bond or note, or non-tradable, such as a bilateral loan (see Debt Securities).
Debt securities
Tradable financial instruments that represent a loan an investor makes to an issuer in exchange for repayment of principal and, typically, regular interest. Bonds, notes and commercial paper are all forms of debt security (see Bond, Note, Commercial paper (CP)).
Deposit
A sum of money placed with a financial institution, economically an unsecured loan. Can be paid out on demand, following notice or after a fixed term.
Depository Trust and Clearing Corporation (DTCC)
A US-based financial services corporation providing clearing and settlement services to the global financial services industry.
Depository Trust Company (DTC)
Depository Trust Company – as a subsidary of DTCC (see DTCC) and one of the world’s largest securities depositories, the DTC holds trillions of dollars in securities in custody, including corporate stocks and bonds, municipal bonds, and money market instruments.
Duration
A measure of the sensitivity of the price of an asset to changes in interest rates and hence is an indicator of interest rate risk. The greater the magnitude of the duration, the greater the sensitivity. Multiple versions exist, including: Macaulay; Modified; and Fisher-Weil.
Effective Annual Yield (EAY)
The yield of an asset calculated using: the actual number of calendar days until a cash flow is received; annual compounding with 365 days in a year; and assuming any interim cash flow is reinvested at the same yield. Also known as the XIRR method, or in some cases the Annual Percentage Yield (APY).
Effective federal funds rate
A interest rate index reflecting the rate that banks charge each other to borrow or lend excess reserves on an overnight basis, calculated as a volume-weighted median of overnight federal funds transactions.
Environmental, Social and Governance (ESG)
While having many different uses and definitions, generally ESG criteria are used to evaluate the environmental, social and governance characteristics of a particular institution or entity.
Escrow
A contractual agreement in which a third party agrees to hold funds or assets before they are transferred from one party to another one. The disbursement of funds or assets from the escrow agent may only occur once certain pre-defined disbursement conditions are agreed and fulfilled by the transacting parties.
ESG Rating
An assessment of an entity's exposure to, and management of, environmental, social and governance risks, produced by a specialist rating provider. ESG ratings are one input treasury and investment teams may use alongside credit ratings when assessing counterparties (see ESG).
Euro overnight index average
Refers to the 1-day interbank interest rate for the Eurozone, where “Overnight” means from one TARGET day (i.e. day on which the Trans-European Automated Real-time Gross Settlement Express Transfer system is open) to the next. EONIA was discontinued on 3rd January 2022. The measure was often used by market participants as an indication of where risk-free rates may lie when assessing the term EONIA market. The ESMA Working Group recommended that the euro short-term rate (€STR) be used as the risk-free rate for the euro area.
European Central Bank (ECB)
The central bank responsible for managing the economic and monetary policy of the 21 European Union member states that have adopted the euro.
European Economic Area (EEA)
Comprises European Union member states and other European Free Trade Association member states, to form a single economic market.
European Union (EU)
Comprises 27 countries in economic and political union and operates a single market allowing the free movement of goods, services, capital and people between its member states.
Euro short term rate
A reference interest rate reflecting the overnight borrowing costs of banks within the Eurozone, based entirely on daily confidential statistical information provided by banks to the ECB.
Extendable FTF
FTF class with an extendable redemption date, similar to a notice deposit. An eFTF offers clients the opportunity to extend the term of the FTF, back to its original number of days to maturity, at regular intervals (Option Extension Dates).
Federal Deposit Insurance Corporation (FDIC)
An independent US federal agency providing deposit insurance to protect against the loss of insured deposits in the event of an insured bank’s failure. FDIC also supervises financial institutions and manages receiverships.
Federal reserve system
The central bank responsible for managing monetary policy in the United States of America.
Fedwire
Also known as Fedwire Funds Services, it is a real-time gross settlement system of central bank money facilitating electronic transfer of final U.S. dollar payments among participating financial institutions.
Financial Conduct Authority (FCA)
The regulator for financial services and financial markets in the United Kingdom, other than the banking and insurance markets which are regulated by the PRA (see PRA).
Financial services compensation scheme
The compensation scheme in the UK protecting customers of authorised UK banks, building societies and credit unions (amongst others) up to a maximum of £120,000 per institution.
Fitch
Fitch Ratings Inc., one of the three main credit rating agencies, is a leading provider of credit ratings, commentary and research for global capital markets.
Fixed-Term Funds
A maturity-matched Alternative Investment Fund (see AIF) that provides standardised, passthrough access to a single fixed income instrument.
Floating-rate note
A debt instrument with a variable interest rate that is reset on a periodic basis.
Foreign Account Tax Compliance Act (FATCA)
A US tax law that dictates the tax and reporting obligations for banks and other financial organisations in relation to US persons investing in non-US investment accounts or assets.
Forward contract
An agreement between two parties, whereby one party (the buyer) agrees to purchase from the other party (the seller) an underlying asset at a later date for a price established at the start of the contract.
FTF class
Class of FTF shares (fixed or extendable)
Futures contract
A legal agreement and a type of derivative that obligates the parties to buy or sell a particular asset at a later date for an agreed price. Unlike forward contracts, futures are not customisable and have the same terms independent of the counterparty.
FX Hedging
The use of financial instruments, such as forward contracts, to reduce or eliminate the risk of loss from adverse movements in exchange rates. Corporates and funds with cash, receivables or investments in more than one currency commonly use FX hedging to protect the value of that exposure (see Forward contract).
General Data Protection Regulation (Regulation (EU) 2016/679) (GDPR)
Regulates data protection and privacy in the EU.
Global master repurchase agreement
Used as a market standard legal agreement by parties transacting in repo (see Repo) and published by the International Capital Market Association.
Global master securities lending agreement
Used as a market standard legal agreement by parties for securities lending transactions and published by the International Securities Lending Association.
Government secured FTF
FTFs overcollateralised with government-issued securities held by a tri-party agent.
Government securities
Debt instruments issued by a national government to fund its spending and manage its cash flow, ranging from short-dated Treasury bills to longer-dated bonds (see Treasury bill, Sovereigns, Supranationals and Agencies (SSA)).
Green bond
A bond whose proceeds are used exclusively to finance or refinance projects with a defined environmental benefit, e.g. renewable energy or clean transport. Most green bond issuance follows a recognised market structure, such as the ICMA Green Bond Principles (see ICMA Green Bond Principles).
Haircut
Expressed as a percentage, it is the difference between the initial market value of an asset and the purchase price paid for that asset at the start of a repo transaction, to which it is also marked daily (or more frequently where tri-party agents are used) in order to remain over-collateralised.
High quality liquid assets
Assets that can be easily and rapidly converted into cash through sales with no material reduction in value.
High yield/junk/sub-prime
Entities considered to be in this category have a credit rating below BBB- from S&P or Fitch or below Baa3 from Moody’s. They are expected to be more likely to default than their investment grade counterparts.
His Majesty's Treasury
the UK government’s economic and finance ministry, responsible for developing and executing the government’s public finance and economic policy.
Hold
A maturity action where funds will be held on behalf of clients in TreasurySpring’s subscription or custodian account.
ICMA Green Bond Principles
The market standard framework used by most bond issuers in financing environmentally sound and sustainable projects that foster a net-zero emissions economy and protect the environment.
ICMA Social Bond Principles
The market standard bond framework used by most issuers in financing socially sound and sustainable projects that achieve greater social benefits.
ICMA Sustainability Bond Guidelines
The market standard framework used by most issuers for issuing sustainability bonds where the proceeds will be exclusively applied to finance or refinance a combination of both green and social projects.
ICMA Sustainability-Linked Bond Principles
The market standard framework for bond issuance, whereby issuers commit explicitly (including in the bond documentation) to future improvements in sustainability outcome(s) within a predefined timeline, measured through predefined Key Performance Indicators (KPIs) and assessed against predefined Sustainability Performance Targets (SPTs). Whilst there are no restrictions on how the proceeds can be used, the annual coupon paid by the issuer varies depending on whether the SPTs have been reached or not.
Incorporated Cell Company (ICC)
TreasurySpring Investments (Jersey) ICC
Incorporated Cell (IC)
Incorporated Cell (see Cell and ICC)
Independent Schools' Bursars Association (ISBA)
A UK membership association representing bursars and finance staff at independent schools, providing guidance, training and advocacy on the financial management of member schools, including treasury and cash investment matters.
Interest rate on reserve balances
The interest rate paid by the Federal Reserve (see Fed) on balances maintained by or on behalf of eligible institutions in master accounts at Federal Reserve Banks.
Interest rate risk
The risk that an asset's value, or a liability's cost, changes as a result of movements in interest rates. Duration (see Duration) is the standard measure used to indicate how sensitive a fixed income instrument is to this risk.
International Bank Account Number (IBAN)
A unique account number, up to 34 characters, initially developed to facilitate payments within the European Union. It is used to identify an individual bank account in international transactions.
International Capital Market Association (ICMA)
An organisation and trade association for participants in the international capital markets, promoting high standards of market practice, appropriate regulation, trade support, education and communication.
International Securities Lending Association (ISLA)
A non-profit industry association, representing the common interests of securities lending and financing market participants across Europe, Middle East and Africa.
International swaps and derivatives association
A trade organisation for market participants in the derivatives market, including derivatives dealers, service providers and end users.
Investment cell
The legal entity, regulated as an alternative investment fund, that issues Fixed Term Funds.
Investment grade
The quality of a company’s credit – to be considered ‘Investment Grade’, a company has to be rated ‘BBB-‘ or higher by Standard & Poor’s and Fitch or Baa3 or higher by Moody’s. Investment grade companies have a lower probability of default as opposed to debt that is considered speculative grade (see High yield/junk/sub-prime).
Issue
Issuance of FTF Shares in any FTF Class at an Indicative Yield set out in the relevant Subscription Application Form.
ABA routing number
American Bankers Association routing number – a nine digit code used to identify US banks when making payments.
Accounting date
The time frame for which a business prepares its financial statements and reports its financial performance. The financial year for the TreasurySpring Platform runs from 1 May to 30 April each year.
Administrator
The independent fund administrator for the TreasurySpring Platform is Summit Fund Services Jersey Limited. Under the Administration Agreement between Summit Fund Services Jersey Limited and the TreasurySpring Platform, Summit Fund Services Jersey Limited provide a wide range of services such as operational, AML and requisite regulatory authorisations and consents needed by the JFSC.
Alternative Investment Fund (AIF)
Defined by the AIFMD (see AIFMD) as a collective investment undertaking (including investment compartments thereof), which raises capital from a number of investors, with a view to investing it for the benefit of those investors in accordance with a defined investment policy; and which does not require authorisation under the UCITS Directive (see UCITS).
Alternative Investment Fund Managers Directive (AIFMD)
A European Union directive (2011/61/EU) that provides a regulatory framework for managers of Alternative Investment Funds (see AIF).
Anti-Money Laundering (AML)
The laws, regulations and procedures designed to detect and prevent money laundering, typically applicable to financial institutions and other regulated entities.
Articles
Articles of Association – available for each Cell and specify the rules that company officers must by law implement when running the Fixed Term Funds.
Asset-Liability Management
The practice of managing an institution's assets and liabilities together so that their timing, currency and interest-rate exposures remain coordinated, decreasing the risk of a mismatch between what is owed and what is available to pay it. Bank and corporate ALM teams are a core audience for maturity-matched cash investments such as Fixed-Term Funds (see Fixed-Term Funds).
Auditors
Ernst & Young LLP – reviews the accounts to ensure the validity and legality of financial records.
Auto-extend
The action of extending an eFTF on the Option Extension Date to the next Extended Redemption Date.
Auto-roll
The action of rolling an existing FTF into a new fund at maturity.
Bank Identifier Code (BIC)
Bank Identifier Code – an 8-11 digit code used to identify a specific bank when instructing payments, often used interchangeably with SWIFT code.
Bank of England (BoE)
Bank of England – the central bank responsible for managing monetary policy in the United Kingdom
Bank of Japan (BoJ)
Bank of Japan – the central bank responsible for managing monetary policy in Japan.
Basis point(s)
Basis point(s) (each equal to one hundredth of a percent) – quoted as an alternative to percentage points for prices and rates.
Bond
A fixed income instrument representing a loan made by an investor to a borrower for a set period of time (typically with a maturity of more than one year), in exchange for regular interest payments.
Business day
A day (excluding Saturday, Sunday and public holidays) on which banks generally are open for business in the City of London and Jersey for the transaction of normal banking business.
Call account
A bank deposit account that can be accessed on demand, without prior notice, usually paying a lower interest rate than a fixed-term or notice deposit in exchange for that immediate access. It sits alongside a notice account (see Notice account) as a source of instant, rather than scheduled, liquidity.
Cell Operating Procedures (COP)
Provides details of the procedures of the FTF lifecycle.
Central bank
A national financial institution providing financial and banking services to a country’s commercial banking system, often being responsible for a country’s monetary policy and issuing currency (where applicable).
Central Counterparty Clearing House (CCP)
Central Counterparty Clearing House – an institution helping facilitate trading in various derivatives, fixed income and equity markets, with two primary functions as an intermediary in the transaction: clearing and settlement.
Central securities depository
An institution holding financial instruments, enabling the transfer of ownership of those instruments in electronic form through updating electronic records (often known as ‘book-entry records’).
Certificateless Registry for Electronic Share Transfer (CREST)
Electronic settlement system for holding and transferring UK and Irish securities in electronic form.
Certificate of Deposit
Certificate of Deposit – a financial product commonly offered by banks providing an interest rate premium in exchange for the customer agreeing to leave a lump-sum deposit untouched for a fixed period of time.
Collateral
A basket of assets that a lender accepts as security for a loan with the goal to reduce credit risk. If the borrower defaults, the lender can sell the collateral to recover unpaid amounts.
Collective investment scheme
A method of pooling funds with other investors, typically in the form of a regulated fund.
Commercial paper (CP)
Usually issued by a bank or a corporate under a CP programme, commercial paper is a short-term negotiable debt instrument, typically with a maturity of less than 365 days.
Common reporting standard
A reporting requirement for financial institutions in participating countries/jurisdictions setting out financial account information to be exchanged between governments for the purpose of fighting tax evasion. Also see FATCA.
Constant Net Asset Value (CNAV)
Refers to a fund that aims to keep a stable price of €1/£1/$1 per share, typically used in money market funds. Since the EU MMF Regulation (EU) 2017/1131), only public (government) debt MMFs are permitted to operate in the EU as CNAV MMFs.
Convertible bond
A type of bond that can be exchanged into a specified number of shares of common stock in the issuing company when certain pre-defined criteria are met.
Corporate treasury management
The function within a business responsible for managing its cash, funding, financial risk and liquidity, including investing surplus cash, managing banking relationships and overseeing foreign exchange and interest rate exposure. Corporate treasury has increasingly moved from a back-office to a strategic function within the business.
Corporation Tax Act 2009
Provides guidance on the tax treatment for Fixed Term Fund holdings.
Counterparty
The other party that participates in a financial transaction.
Counterparty risk
The possibility of loss, resulting from the other party to a transaction’s failure to repay a loan or meet contractual obligations. Often used interchangeably with credit risk.
Covered bond
A form of debt security collateralised by a pool of assets (typically mortgage loans or public-sector debt) to which investors have a preferential claim in the event of default by the issuer.
Credit benchmark
A financial technology company that aggregates and anonymises credit risk estimates from market participants and offers insights into unrated sovereigns, funds, public and private companies and subsidiaries.
Credit Default Swap (CDS)
Credit Default Swap – a form of credit protection, by way of a financial derivative that binds the seller of the CDS to compensate the buyer in the event of a debt default or other credit event of the underlying company on which the CDS was written.
Credit rating agency
A company that assigns credit ratings, assessing a borrower’s ability to repay debt in time (see S&P, Moody’s and Fitch).
Credit risk
The risk of loss arising from a borrower’s inability to repay a loan or meet contractual obligations. Often used interchangeably with counterparty risk.
Custodian
A financial institution that offers safekeeping of customer assets in a (generally) bankruptcy-remote format.
Custodian account
TreasurySpring’s account at custodian institutions, holding securities for safekeeping.
Customer due diligence
Customer Due Diligence – the processes typically used by financial institutions to collect and evaluate relevant information about a (potential) customer, with the required information provided by the customer or by independent third-party sources.
Cut-off time
The time after which the maturity action cannot be changed.
Debt instruments
A broad term for any financial instrument representing a borrower's obligation to repay a lender, whether tradable, such as a bond or note, or non-tradable, such as a bilateral loan (see Debt Securities).
Debt securities
Tradable financial instruments that represent a loan an investor makes to an issuer in exchange for repayment of principal and, typically, regular interest. Bonds, notes and commercial paper are all forms of debt security (see Bond, Note, Commercial paper (CP)).
Deposit
A sum of money placed with a financial institution, economically an unsecured loan. Can be paid out on demand, following notice or after a fixed term.
Depository Trust and Clearing Corporation (DTCC)
A US-based financial services corporation providing clearing and settlement services to the global financial services industry.
Depository Trust Company (DTC)
Depository Trust Company – as a subsidary of DTCC (see DTCC) and one of the world’s largest securities depositories, the DTC holds trillions of dollars in securities in custody, including corporate stocks and bonds, municipal bonds, and money market instruments.
Duration
A measure of the sensitivity of the price of an asset to changes in interest rates and hence is an indicator of interest rate risk. The greater the magnitude of the duration, the greater the sensitivity. Multiple versions exist, including: Macaulay; Modified; and Fisher-Weil.
Effective Annual Yield (EAY)
The yield of an asset calculated using: the actual number of calendar days until a cash flow is received; annual compounding with 365 days in a year; and assuming any interim cash flow is reinvested at the same yield. Also known as the XIRR method, or in some cases the Annual Percentage Yield (APY).
Effective federal funds rate
A interest rate index reflecting the rate that banks charge each other to borrow or lend excess reserves on an overnight basis, calculated as a volume-weighted median of overnight federal funds transactions.
Environmental, Social and Governance (ESG)
While having many different uses and definitions, generally ESG criteria are used to evaluate the environmental, social and governance characteristics of a particular institution or entity.
Escrow
A contractual agreement in which a third party agrees to hold funds or assets before they are transferred from one party to another one. The disbursement of funds or assets from the escrow agent may only occur once certain pre-defined disbursement conditions are agreed and fulfilled by the transacting parties.
ESG Rating
An assessment of an entity's exposure to, and management of, environmental, social and governance risks, produced by a specialist rating provider. ESG ratings are one input treasury and investment teams may use alongside credit ratings when assessing counterparties (see ESG).
Euro overnight index average
Refers to the 1-day interbank interest rate for the Eurozone, where “Overnight” means from one TARGET day (i.e. day on which the Trans-European Automated Real-time Gross Settlement Express Transfer system is open) to the next. EONIA was discontinued on 3rd January 2022. The measure was often used by market participants as an indication of where risk-free rates may lie when assessing the term EONIA market. The ESMA Working Group recommended that the euro short-term rate (€STR) be used as the risk-free rate for the euro area.
European Central Bank (ECB)
The central bank responsible for managing the economic and monetary policy of the 21 European Union member states that have adopted the euro.
European Economic Area (EEA)
Comprises European Union member states and other European Free Trade Association member states, to form a single economic market.
European Union (EU)
Comprises 27 countries in economic and political union and operates a single market allowing the free movement of goods, services, capital and people between its member states.
Euro short term rate
A reference interest rate reflecting the overnight borrowing costs of banks within the Eurozone, based entirely on daily confidential statistical information provided by banks to the ECB.
Extendable FTF
FTF class with an extendable redemption date, similar to a notice deposit. An eFTF offers clients the opportunity to extend the term of the FTF, back to its original number of days to maturity, at regular intervals (Option Extension Dates).
Federal Deposit Insurance Corporation (FDIC)
An independent US federal agency providing deposit insurance to protect against the loss of insured deposits in the event of an insured bank’s failure. FDIC also supervises financial institutions and manages receiverships.
Federal reserve system
The central bank responsible for managing monetary policy in the United States of America.
Fedwire
Also known as Fedwire Funds Services, it is a real-time gross settlement system of central bank money facilitating electronic transfer of final U.S. dollar payments among participating financial institutions.
Financial Conduct Authority (FCA)
The regulator for financial services and financial markets in the United Kingdom, other than the banking and insurance markets which are regulated by the PRA (see PRA).
Financial services compensation scheme
The compensation scheme in the UK protecting customers of authorised UK banks, building societies and credit unions (amongst others) up to a maximum of £120,000 per institution.
Fitch
Fitch Ratings Inc., one of the three main credit rating agencies, is a leading provider of credit ratings, commentary and research for global capital markets.
Fixed-Term Funds
A maturity-matched Alternative Investment Fund (see AIF) that provides standardised, passthrough access to a single fixed income instrument.
Floating-rate note
A debt instrument with a variable interest rate that is reset on a periodic basis.
Foreign Account Tax Compliance Act (FATCA)
A US tax law that dictates the tax and reporting obligations for banks and other financial organisations in relation to US persons investing in non-US investment accounts or assets.
Forward contract
An agreement between two parties, whereby one party (the buyer) agrees to purchase from the other party (the seller) an underlying asset at a later date for a price established at the start of the contract.
FTF class
Class of FTF shares (fixed or extendable)
Futures contract
A legal agreement and a type of derivative that obligates the parties to buy or sell a particular asset at a later date for an agreed price. Unlike forward contracts, futures are not customisable and have the same terms independent of the counterparty.
FX Hedging
The use of financial instruments, such as forward contracts, to reduce or eliminate the risk of loss from adverse movements in exchange rates. Corporates and funds with cash, receivables or investments in more than one currency commonly use FX hedging to protect the value of that exposure (see Forward contract).
General Data Protection Regulation (Regulation (EU) 2016/679) (GDPR)
Regulates data protection and privacy in the EU.
Global master repurchase agreement
Used as a market standard legal agreement by parties transacting in repo (see Repo) and published by the International Capital Market Association.
Global master securities lending agreement
Used as a market standard legal agreement by parties for securities lending transactions and published by the International Securities Lending Association.
Government secured FTF
FTFs overcollateralised with government-issued securities held by a tri-party agent.
Government securities
Debt instruments issued by a national government to fund its spending and manage its cash flow, ranging from short-dated Treasury bills to longer-dated bonds (see Treasury bill, Sovereigns, Supranationals and Agencies (SSA)).
Green bond
A bond whose proceeds are used exclusively to finance or refinance projects with a defined environmental benefit, e.g. renewable energy or clean transport. Most green bond issuance follows a recognised market structure, such as the ICMA Green Bond Principles (see ICMA Green Bond Principles).
Haircut
Expressed as a percentage, it is the difference between the initial market value of an asset and the purchase price paid for that asset at the start of a repo transaction, to which it is also marked daily (or more frequently where tri-party agents are used) in order to remain over-collateralised.
High quality liquid assets
Assets that can be easily and rapidly converted into cash through sales with no material reduction in value.
High yield/junk/sub-prime
Entities considered to be in this category have a credit rating below BBB- from S&P or Fitch or below Baa3 from Moody’s. They are expected to be more likely to default than their investment grade counterparts.
His Majesty's Treasury
the UK government’s economic and finance ministry, responsible for developing and executing the government’s public finance and economic policy.
Hold
A maturity action where funds will be held on behalf of clients in TreasurySpring’s subscription or custodian account.
ICMA Green Bond Principles
The market standard framework used by most bond issuers in financing environmentally sound and sustainable projects that foster a net-zero emissions economy and protect the environment.
ICMA Social Bond Principles
The market standard bond framework used by most issuers in financing socially sound and sustainable projects that achieve greater social benefits.
ICMA Sustainability Bond Guidelines
The market standard framework used by most issuers for issuing sustainability bonds where the proceeds will be exclusively applied to finance or refinance a combination of both green and social projects.
ICMA Sustainability-Linked Bond Principles
The market standard framework for bond issuance, whereby issuers commit explicitly (including in the bond documentation) to future improvements in sustainability outcome(s) within a predefined timeline, measured through predefined Key Performance Indicators (KPIs) and assessed against predefined Sustainability Performance Targets (SPTs). Whilst there are no restrictions on how the proceeds can be used, the annual coupon paid by the issuer varies depending on whether the SPTs have been reached or not.
Incorporated Cell Company (ICC)
TreasurySpring Investments (Jersey) ICC
Incorporated Cell (IC)
Incorporated Cell (see Cell and ICC)
Independent Schools' Bursars Association (ISBA)
A UK membership association representing bursars and finance staff at independent schools, providing guidance, training and advocacy on the financial management of member schools, including treasury and cash investment matters.
Interest rate on reserve balances
The interest rate paid by the Federal Reserve (see Fed) on balances maintained by or on behalf of eligible institutions in master accounts at Federal Reserve Banks.
Interest rate risk
The risk that an asset's value, or a liability's cost, changes as a result of movements in interest rates. Duration (see Duration) is the standard measure used to indicate how sensitive a fixed income instrument is to this risk.
International Bank Account Number (IBAN)
A unique account number, up to 34 characters, initially developed to facilitate payments within the European Union. It is used to identify an individual bank account in international transactions.
International Capital Market Association (ICMA)
An organisation and trade association for participants in the international capital markets, promoting high standards of market practice, appropriate regulation, trade support, education and communication.
International Securities Lending Association (ISLA)
A non-profit industry association, representing the common interests of securities lending and financing market participants across Europe, Middle East and Africa.
International swaps and derivatives association
A trade organisation for market participants in the derivatives market, including derivatives dealers, service providers and end users.
Investment cell
The legal entity, regulated as an alternative investment fund, that issues Fixed Term Funds.
Investment grade
The quality of a company’s credit – to be considered ‘Investment Grade’, a company has to be rated ‘BBB-‘ or higher by Standard & Poor’s and Fitch or Baa3 or higher by Moody’s. Investment grade companies have a lower probability of default as opposed to debt that is considered speculative grade (see High yield/junk/sub-prime).
Issue
Issuance of FTF Shares in any FTF Class at an Indicative Yield set out in the relevant Subscription Application Form.
