i.i.p.

See   international investment position (i.i.p.)
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IBAN

See   International Bank Account Number (IBAN)
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ICSD

See   international central securities depository (ICSD)
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IFTS

See   interbank funds transfer system (IFTS)
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IMF

See   International Monetary Fund (IMF)
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IMF Balance of Payments Manual

A manual of international standards issued by the IMF to provide guidance for compilers of b.o.p. and i.i.p. statistics (the fifth edition of 1993 is the latest update).
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immobilisation

The placement of physical certificates for securities and financial instruments in a common depository or a central securities depository so that subsequent transfers can be made by book entry (i.e. by debiting and crediting holders’ accounts at the depository).
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implied volatility

A measure of expected volatility (standard deviation in terms of annualised percentage changes) in the prices of, for example, bonds and stocks (or of corresponding futures contracts), which can be extracted from option prices.
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index of industrial producer prices

See   industrial producer price
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indicator of negotiated wages

A measure of the changes over time in the direct outcome of collective bargaining in terms of basic pay (i.e. wages and salaries excluding bonuses) at the euro area level. It refers to the implied average change in monthly wages and salaries.
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indirect holding system

A multi-tiered arrangement for the custody and transfer of ownership of securities (or the transfer of similar interests therein) in which investors are identified only at the level of their custodian. Antonym:   direct holding system
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indirect link

A link between two central securities depositories (CSDs) through a non-CSD intermediary. See also   direct link
  relayed link
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indirect participant

A participant in a funds or securities transfer system with a tiering arrangement that uses a direct participant as an intermediary in order to perform some of the activities allowed in the system (particularly settlement). See also   direct participant
  tiering arrangement
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industrial producer price

The factory-gate price (transportation costs are not included) of any product, excluding imports, sold by industry excluding construction on the domestic markets of the euro area countries.
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industrial production

The gross value added created by industry at constant prices.
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inflation

An increase in the general price level, e.g. in the consumer price index. See also   deflation
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inflation risk premium

Compensation of investors for the risks associated with holding assets (denominated in nominal terms) over the longer term.
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inflation targeting

A monetary policy strategy aimed at maintaining price stability by focusing on deviations in published inflation forecasts from an announced inflation target.
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inflation-indexed government bond

A debt security issued by the central government, the coupon payments and principal of which are linked to a specific CPI.
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initial margin

For instruments cleared by a central counterparty (CCP), the amount of collateral that each participant is required to provide to the CCP (or the clearing member) in order to cover potential losses in the event of that participant defaulting. The initial margin is calculated on the basis of a formula set by the CCP. See also   haircut
  margin
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insurance corporations and pension funds

A sector defined in the ESA 95 as comprising all financial corporations and quasi-corporations that are engaged primarily in financial intermediation as the consequence of the pooling of risks.
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Integrated Guidelines

Guidelines adopted by the EU Council to promote growth and jobs, bringing together the Broad Economic Policy Guidelines and the Employment Guidelines. See also   Broad Economic Policy Guidelines (BEPGs)
  Employment Guidelines
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integrity

In the context of data, the quality of being protected against accidental or fraudulent alteration in transmission or in storage. Alternatively, the quality of indicating whether or not such alteration has occurred.
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integrity of a securities issue

The result of legal requirements and securities accounting procedures ensuring that the number of securities issued is, at all times, equal to the total number of securities in circulation (i.e. validly booked in investors’ accounts).
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interbank funds transfer system (IFTS)

A funds transfer system in which all (or almost all) participants are credit institutions.
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interbank money market

The market for short-term lending between banks, usually involving the trading of funds with a maturity of between one day (overnight or even shorter) and one year.
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interchange fee

A transaction fee payable between the payment service providers involved in a transaction.
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interest rate

The ratio, usually expressed as a percentage per annum, of the amount that a debtor has to pay to the creditor over a given period of time to the amount of the principal of the loan, deposit or debt security.
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interest rate future

An exchange-traded forward contract. In such a contract, the purchase or sale of an interest rate instrument, e.g. a bond, is agreed on the contract date to be delivered at a future date, at a given price. Usually no actual delivery takes place; the contract is normally closed out before the agreed maturity.
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interest rate swap

A contractual agreement with a counterparty to exchange cash flows representing streams of periodic interest payments in one currency. See also   cross-currency swap
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interest-bearing claim

Any financial asset that gives its owner the right to receive interest payments from the debtor who issued the asset.
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internal rate of return (IRR)

A rate at which the accounting value of a security is equal to the present value of the future cash flow.
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internal settlement

Settlement that is effected through transfers of securities and/or funds on the books of a bank or investment firm, as opposed to settlement via an interbank funds transfer system or a central securities depository (CSD).
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International Bank Account Number (IBAN)

An International Organization for Standardization (ISO) technical code that is an expanded version of the basic bank account number (BBAN). Intended for use internationally, the IBAN uniquely identifies an individual account at a specific financial institution in a particular country. The IBAN also includes the bank identifier of the financial institution servicing that account.
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international central securities depository (ICSD)

A central securities depository (CSD) which was originally set up to settle Eurobond trades and is now active also in the settlement of internationally traded securities from various domestic markets, typically across currency areas. At present, there are two ICSDs located in EU countries: Clearstream Banking in Luxembourg and Euroclear Bank in Belgium.
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international investment position (i.i.p.)

The value and composition of an economy’s outstanding net financial claims on (or financial liabilities to) the rest of the world.
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International Monetary Fund (IMF)

An international organisation, based in Washington, D.C., with a membership of 187 countries (2011). It was established in 1946 to promote international monetary cooperation and exchange rate stability, to foster economic growth and high levels of employment and to help member countries to correct balance of payments imbalances.
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international reserves template

A statistical statement used to report the stock of reserve assets, other foreign currency assets and reserve-related liabilities of the Eurosystem on a specific reference date.
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interoperability

The set of arrangements/procedures that allows participants in different systems to conduct and settle payments or securities transactions across systems while continuing to operate only in their own respective systems.
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intra-euro area trade

The exchange of (i.e. trade in) goods and services between individual euro area countries.
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intraday credit (daylight credit)

Credit extended and reimbursed within a single business day.
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intraday finality

Final settlement achieved continuously or at various times in the course of the settlement day. Intraday finality can be provided through real-time settlement procedures and/or the settlement of the results of batch processing during the settlement day.
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intraday liquidity

Funds which are available or can be borrowed during the business day in order to enable financial institutions to effect payments/settlement. Repayment of the funds borrowed should take place before the end of the business day. See also   intraday credit
  same-day funds
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inverse floating rate instrument

A structured note where the rate of interest paid to the holder of the note varies inversely with changes in a certain reference interest rate.
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investment firm

Any entity whose regular occupation or business is the provision of one or more investment services to third parties and/or the performance of one or more investment activities on a professional basis.
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investor CSD

A term used in the context of central securities depository (CSD) links. An investor CSD – or a third party acting on behalf of the investor CSD – opens an account in another CSD (the issuer CSD) so as to enable the cross-system settlement of securities transactions. See also   central securities depository
  CSD link
  issuer CSD
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IRR

See   internal rate of return (IRR)
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issuer

The entity which is obligated on a security or other financial instrument.
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issuer CSD (issuing CSD)

A central securities depository (CSD) in which securities are issued (or immobilised). The issuer CSD opens accounts allowing investors (in a direct holding system) and/or intermediaries (including investor CSDs) to hold these securities. See also   direct holding system
  direct link
  indirect holding system
  investor CSD
  relayed link
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issuing CSD

See   issuer CSD (issuing CSD)
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