Skip Navigation

Jargon Buster - E

Early Bird Interest

The interest payable for money invested in a Structured Product, which is received in advance of the end of the subscription period. Please note: not all Structured Product providers offer this.

Early Redemption

Structured Products are designed to be held for their full product term, although it may be possible to sell the investment prior to the maturity date. However, investors should be aware that the proceeds they receive back when they sell their investment early may be less than the amount they originally invested and any capital protection offered by a product is valid if that product is held until its stated maturity date only.

End Date

The date on which the Final Level for an Underlying is recorded (in the absence of any Averaging).

EURO STOXX 50 Index

The EURO STOXX 50 Index tracks the 50 largest blue chip companies from 12 Eurozone countries: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal and Spain. It is a price return index, which means that it does not take into account any dividends paid by its constituent companies. The index is weighted according to market cap, which means that larger companies have a greater influence on the performance of the index than smaller companies. It is used as a benchmark of the performance of Eurozone equity markets and can be used as an Underlying for Structured Products.

European Barrier

A European Barrier is often referred to in relation to Non-Protected products. It is the level of the Underlying (usually expressed as a percentage of its Start Level) that if breached, puts the investors' capital at risk at Maturity. The difference between a European Barrier and an American Barrier is the frequency at which it is monitored. A European Barrier will be breached if the Underlying closes below the European Barrieron a set date (usually the End Date). By contrast, an American Barrier will be breached if the Underlying is below the American Barrieron any day during the Term. For example, a product with a 60% European Barrier will put investors' capital at risk at Maturity if the Underlying is 40% or more below its Start Level on the End Date.

Exchange

A formal marketplace in which different financial instruments (such as commodities, equities and derivatives) are traded. For example, the London Stock Exchange is the primary stock exchange in the UK and is the largest in Europe.

Extraordinary Event

A significant event that affects the Underlying of a Structured Product, to the point that it is no longer appropriate for the Structured Product to continue to link to that Underlying. Extraordinary events include, but are not limited to, a fundamental change to the way the Underlying value is calculated, the Underlying not being published for a specified number of Business Days or the announcement that the Underlying is to cease trading.

We've put together a glossary of terminology associated with structured products.

While these are standard definitions, it's important that you read the relevant product literature before investing, as providers might use a slightly different definition to those detailed here.

Thank you. Your details have been added to our mailing list.
×

Representing the collective interests of leading structured product manufacturers in the UK

The UK Structured Products Association ('UKSPA') is a membership organisation established by the leading manufacturers of structured products in the UK. UKSPA provides a unified voice for its members, working with regulators, financial advisers and other trade bodies. It serves a number of important functions, including engaging with regulators, developing best practice guidelines, educating the investment community and providing a useful source of information for manufacturers, financial advisers and retail investors within the UK.

This site uses cookies to improve your user experience. By entering this site you are consenting to our use of cookies.

Click below to accept and enter the site. I am a: