Glossary: E

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ECN

An electronic communication network (ECN) is an electronic system that attempts to eliminate third party orders by a market maker, and permits such orders to be executed either in whole or in part.

 

EDS

Electronic Data Services (EDS) gives historical turnover information about securities traded on the Exchange.

 

Efficient financial market

A market that offers transparency, liquidity, low transaction costs and price movements.

 

EFIQ

End of Firm/Indq Quote Period

 

EIQP

End of IMQP

 

Elasticity - covered warrant

Sometimes called leverage. It measures the theoretical increase (decrease) in the price of a covered warrant (in percentage terms) based in a one percent move in the underlying asset.

 

Eligibility criteria

The requirements for eligibility and admission to be followed by issuers seeking admission to an attribute group as published by the Exchange and amended from time to time.

 

EMQP

End of MQP

 

Enhanced best price

The number and volume of orders ar best on each side of the order book updated in real-time

 

Entitlement Issue (Open Offer)

Shareholders are given the right to subscribe for the new fully paid share.  The new shares are not issued in nil paid form.

 

EOA

End of Admin.

 

EOBT

End of Order Book Trading

 

EODR

End of Order Hitting

 

EPIC

Exchange Price Input Computer (EPIC) code that has been replaced by Tradable Instrument Display Mnemonic (TIDM) code.

 

Equity

The risk-sharing part of a company's capital, usually made up of ordinary shares.

 

Equity option

Equity options give the option buyer the right to buy or sell shares of companies. The standard LIFFE contract size for equity options is 100 or 1000 shares.

 

ERRR

Error Code Incorrect

 

ETF (Exchange traded fund)

A collective investment vehicles which track indices - they can allow low cost exposure to the performance of an index as quickly and efficiently as the most liquid UK stocks.

 

EUR

Euro - common currency of the European union.

 

Euro Depositary Receipt (EDR)

As with other depositary receipts, the EDR is a certificate representing ownership of the issuer's underlying shares. The EDR is denominated and quoted in euros.

 

Eurobond

An interest-bearing security issued across national borders, often in a currency other than that of the issuer's home country.

 

Euronext

The first cross-border exchange in Europe, it was formed by the merger of the Amsterdam, Paris and Brussels stock exchanges.

 

Euronext.liffe

International derivatives business of Euronext comprising Amsterdam, Brussels, LIFFE (London International Financial Futures and Options Exchange), Lisbon and Paris derivatives markets which was formed following the purchase of LIFFE by euronext NV in 2001.

 

European style covered warrant

A European style covered warrant is one that may only be exercised on the last trading day.

 

European style option

It gives the buyer the right to exercise the option only on the expiry date.

 

EUTC

Euro Testing Closed

 

EUTO

Euro testing Open

 

Ex

When a stock or dividend is issued by a company it is based upon an "on register" or "record date".  However, to create a level playing field when shares are traded on the London Stock Exchange during this benefit preiod an "ex" date is set.  Before this "ex" date if shares are sold the selling patry will need to pass on the benefit or dividend to the buying party.

Ex Capitalisation

Trading has previously commenced "ex" capitalisation on this stock.

 

Ex Capitalisation Today

Trading has commenced "ex" capitalisation on this stock today.

 

Ex Dividend

Trading has previously commenced "ex" capitalisation on this stock today.

 

Ex Dividend Today

Trading has commenced "ex" dividend on this stock today.

 

Ex Liquid

Trading has previously commenced "ex" liquidation payment on this stock.

 

Ex Liquid Today

Trading has commenced "ex" liquidation payment on this stock today.

 

Ex Other

Trading has previously commenced "ex" a benefit on this this stock.

 

Ex Other Today

Trading has commenced "ex" a benefit on this stock today.

 

Ex Stabilisation

Stabilisation is operating on the market in this security today.

 

Ex Stabilisation Today

Stabilisation is operating on the market in this security today.

 

Ex Repayment

Trading has previously commenced "ex" repayment on this stock.

 

Ex Repayment Today

Trading has commenced "ex" Repayment on this stock today.

 

Ex Rights

Trading has previously commenced "ex" rights on this stock.

 

Ex Rights Today

Trading has commenced "ex" rights on this stock today.

 

Ex Stock

Trading has previously commenced "ex" stock distribution on this stock.

 

Ex Stock Today

Trading has commenced "ex" stock distribution on this stock today.

 

Exchange

An exchange provides access to capital and facilitates securities dealing through speedy and innovative trading platforms and services. An exchange is also responsible for delivering an orderly market.

 

Exchange traded contracts

Exchange traded futures contracts are standardised in terms of delivery date, contract terms and amount. These are traded on the LIFFE.

 

Ex-dividend list

The London Stock Exchange's ex-dividend list service provides advance details of securities that will be marked 'ex-dividend' in the following week. The ex-dividend date defines the date from which the dividend is excluded from the share price.

 

Execute and Eliminate order

An order submitted to an order book to deal in a specified number of shares at a price no higher than a specified limit price. It may execute, either in part or in full, against eligible orders (at the price of those orders).  Unexecuted portions of execute and eliminate orders are rejected from the order book.

 

Execution only

An execution only broker merely buys and sells shares on the instructions of the client.

 

Exercise

The process of using the right to buy or sell the underlying at the specified price.

 

Exercise price

The exercise (or strike) price is the price at which the option can be exercised, regardless of the actual market price of the stock.

 

Ex-Marker

An indicator used to highlight that a particular ex-benefit condition is in effect on a tradable instrument. For example, Ex-Rights, Ex-Dividend (as above), Ex-Liquidation Distribution, Ex-Entitlement, Ex-Capitalisation, Ex-Stock Distribution, Ex-Repayment

 

Expiry date

Every option/covered warrant contract has a specified date in the future when it expires. The option contract becomes worthless if it remains unexercised on the expiry date.