Futures and Forex Glossary Dictionary E2

An account held by a third party with respect to a transaction involving two parties and which is released by the third party to one of the other two parties on fulfillment of obligation to the satisfaction of the counterparty. Related Term: Annual Mortgage Statement

Rate of interest applicable in the Euro interbank market when a bank borrows funds from other banks within the euro zone. Related Term: Emirates Interbank Offered Rate (EIBOR)

Abbreviation for the Euro currency.

Same as Euribor.

World’s largest settlement system for bonds and equities transactions

Currency of a country that is deposited in a financial institution outside the country, especially non-European currency deposited in Europe. Also called Euromoney Related Term: Eurobond, Eurobank

US Dollar deposits held in banks outside US.

Frankfurt based Central bank established in 1998 responsible for the European Union monetary system and the Euro currency. Related Term: Bank for International Settlements (BIS)

Unit of currency in existence since 1979 in the European Union but prior to the introduction of the Euro.

Setup in 1979 to stabilize exchange rate amongst several European countries by linking their currencies. Precursor of the European Monetary Union

European Monetary Union’s (EMU) Currency

Option that can be exercised only at its maturity date. Related Term: American option

Block of European countries founded in 1957 by Treaty of Rome to foster a single market for goods and services across member countries devoid of any economic barriers.

Japanese Yen deposits in banks outside Japan and the trading of Yen in Eurocurrency markets. Related Term: Eurocurrency

Economic and geopolitical region of the world comprising European Union countries where Euro has been adopted as national currency. Also called Euroland

Funds deposited in a currency trading account which far exceeds the amount required for margin purpose.