• SITC

    The Standard international trade classification, abbreviated as SITC, is a product classification of the United Nations (UN) used for external trade statistics (export and Import values and volumes of goods), allowing for international comparisons of commodities and manufactured goods.

  • Secondary market

    Market where transactions are carried out concerning financial instruments in circulation.

  • Sector of activity

    A sector of activity is a group of enterprises producing similar goods or services.

  • Securities settlement system (SSS)

    A securities settlement system guarantees the secure handling of transactions in dematerialised securities on the primary and secondary markets. It also ensures that delivery of and payment for the securities are effected simultaneously (delivery against payment principle).

  • Single Resolution Mechanism (SRM)

    The SRM, a key pillar of the banking union, provides tools and instruments for the recovery and resolution of credit institutions and certain investment firms in the euro area and other participating Member States.

  • Single Supervisory Mechanism (SSM)

    The Single Supervisory Mechanism (SSM) is a new framework for banking supervision in Europe. It comprises the ECB and national supervisory authorities of participating EU countries. Its main aims are to ensure the safety and soundness of the European banking system and to increase financial integration and stability in Europe. The SSM is an important milestone towards a banking union within the EU.

  • Stability and Growth Pact

    The Stability and Growth Pact aims at safeguarding sound public finances in Stage Three of Economic and Monetary Union in order to strengthen the conditions needed, on the one hand, for strong, sustainable growth conducive to employment creation and, on the other hand, for price stability. More specifically, budgetary positions close to balance or in surplus are required as the medium-term objective, which would allow Member States of the EU to deal with normal cyclical fluctuations while keeping the government deficit below the level of 3 p.c. of GDP.

  • Standing facility

    “Window” the Eurosystem offers to credit institutions in the euro area, enabling them to execute operations on their own initiative at pre-announced interest rates. The Eurosystem offers two overnight standing facilities: the marginal lending facility and the deposit facility.

  • Strips (Separate trading of interest and principal)

    Linear bonds whose coupons and principal are traded separately.

  • Structural operation

    Open market operation executed in order to bring about a lasting change in the structure of the Eurosystem’s balance sheet.

  • Sureties

    Cash, bonds and savings notes of the EU that are deposited with the Belgian Deposit and Consignment Office in connection with administrative consignments or by virtue of social security laws.

  • Swift

    Enterprise, jointly managed by the international banking community, which provides banks across the world with a network via which they can exchange messages concerning payments to each other and securities transactions. These messages are considered to be binding. The confidentiality of this system of exchange is based on its membership to which a number of entry requirements are attached, a computer network which is closely safeguarded and well developed, and the use of a standardised code language for messages, whose format is centrally designed and managed by Swift.

  • Systemic risk

    The risk that the failure of one participant in a funds transfer system or exchange-for-value system, or in financial markets generally, to meet its required obligations will cause other participants or financial institutions to be unable to meet their obligations (including settlement obligations in a transfer system) when due. Such a failure may cause significant liquidity or credit problems and, as a result, might threaten the stability of financial markets.