Brexit: financial services Contents

Appendix 6: Glossary

AIFMD

Alternative Investment Fund Managers Directive

Article 50

Article 50 TEU sets out the procedure by which a Member State can leave the EU. Formal notification under Article 50 starts a two year period in which withdrawal negotiations can take place.

Basel Committee

A forum for regular cooperation on banking supervisory matters.

Brexit

The United Kingdom’s withdrawal from the European Union.

CCP

Central counter-party, also known as a clearing house.

CETA

The Comprehensive Economic and Trade Agreement. Canada’s free trade agreement in the EU.

Clearing

The process of reconciling purchases and sales of various options, futures or securities, as well as the direct transfer of funds from one financial institution to another.

CRD

Capital Requirements Directive

Derivative

A security with a price dependent upon one or more underlying assets, such as stocks, bonds, currencies or interest rates. The value of a derivative is determined by the underlying assets.

ECB

European Central Bank

Ecosystem

In this report, ecosystem refers to London as a unique financial and technological structure.

EEA

European Economic Area

EFTA

European Free Trade Area

EMIR

European Market Infrastructure Regulation

Equivalence

Provisions in certain pieces of EU legislation allow market access to firms from non-EEA countries judged to have an equivalent regulatory and supervisory regime to the EU.

EU

European Union

European Commission

The executive of the European Union

Eurozone

Monetary union of European Union Member States

FCA

Financial Conduct Authority

Financial Stability Board

International body that monitors and makes recommendations about the global financial system.

FinTech

A wide range of activities in which companies use technology to make financial services, enable financial services or drive technological innovation of financial services.

GATS

General Agreement on Trade in Services

GDPR

General Data Protection Regulation

Great Repeal Bill

The Prime Minister announced in October 2016 that a ‘Great Repeal Bill’ would be introduced in Parliament in the 2017–18 Session. The bill is intended to annul, at the point of the UK’s departure from the EU, the European Communities Act 1972, and ensure that EU legislation given effect domestically will continue to apply until specifically repealed.

IMD

Insurance Mediation Directive

MCD

Mortgage Credit Directive

MiFID

Markets in Financial Instruments Directive. The MiFID II package also includes the Markets in Financial Instruments Regulation.

OTC

Over The Counter. This refers to securities traded in a context other than on a formal exchange.

Passporting

The right for a firm registered in the EEA to do business in any other EEA state without needing further authorisation.

Peer-to-Peer lending

The practice of lending money to individuals or businesses through online services that match lenders directly with borrowers.

PSD

Payment Services Directive

STEM

Science, Technology, Engineering and Maths

TEU

Treaty on the European Union

UCITS

Undertakings for the Collective Investment of Transferable Securities

WTO

World Trade Organisation





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