> For the complete documentation index, see [llms.txt](https://initiativ.gitbook.io/initiativ/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://initiativ.gitbook.io/initiativ/mm_internal/v0.1-appendices/15-appendix-a-glossary-of-terms.md).

# 15 Appendix A Glossary of Terms

## Core Terms

**Administrator:** A user role within a Member organization responsible for managing account configuration, user access, trading limits, eligible markets, bank/registry accounts, and subscription settings. Administrators cannot trade unless assigned an additional Trader role.

**Broker:** A Member category that facilitates bilateral off-exchange transactions between counterparties, which are then cleared on the Exchange via the OTC Block Clear module.

**Business Day:** A day on which the Exchange is open for trading, excluding weekends and designated holidays as specified in the Holiday Calendar.

**Cash Balance:** The amount of eligible cash held by a Member in the Fiducie, available for trading after accounting for reserved cash for open buy Orders, applicable fees, and taxes.

**Eligible Markets:** The specific instruments or products that a Member is authorized by the Exchange to trade, as configured through the Administration Panel and approved by the Exchange.

**EUA (European Union Allowance):** An allowance issued under the EU Emissions Trading System established by Directive 2003/87/EC (as amended), entitling the holder to emit one tonne of carbon dioxide equivalent (CO₂e) during a specified compliance period.

**Fiducie:** A fiduciary structure under French law that guarantees payment and delivery of assets. The fiduciary intermediary holds Members’ cash and emission allowances in segregated sub-accounts and ensures secure, simultaneous transfer of assets at trade execution.

**Initiativ:** The operator and administrator of the Initiativ Exchange, which provides the trading platform and related services for transactions in emission allowances and associated products. Initiativ is responsible for establishing, maintaining, and enforcing the Exchange’s rules, including participant eligibility criteria and onboarding procedures.

**Inventory:** The quantity of emission allowances (EUA, UKA, etc.) held by a Member in the Fiducie and available for trading. Inventory forms part of the calculation of the Member’s Trading Limit and must remain within the Member’s Maximum Quota. Inventory is updated in real time following trade execution and custody transfers.

**Market Maker:** A Member category that commits to providing continuous liquidity in designated instruments under a Market Making Agreement. Market Makers are subject to uptime, spread, and size commitments but receive no preferential matching priority.

**Maximum Financial Quota:** For each Member, the Maximum Financial Quota represents the maximum amount of eligible cash assets that may be held on the Exchange at any given time, as determined by the Exchange in accordance with its risk, compliance and operational parameters.

**Maximum Quota:** For each Member, the Maximum Quota represents the maximum permitted Inventory in a designated contract either by a single account or across multiple accounts controlled by the same entity and as determined by the Exchange in accordance with its risk, compliance and operational parameters.

**Member:** A legal entity admitted to the Exchange under the Rulebook, authorized to trade and assume obligations in its own name and capacity.

**Order Book:** The electronic facility operated by the Exchange through which Orders are entered, displayed, matched, and executed in accordance with the Exchange’s trading rules and system parameters.

**Participant:** An individual or system, authorized by a Member and the Exchange, that accesses the Exchange’s trading system to submit orders or quotes under the Member’s authority.

**Payment Versus Delivery (PvD):** A settlement mechanism ensuring that both the transfer of emission allowances and corresponding payment occur simultaneously at the time of trade execution, eliminating settlement risk and counterparty credit risk.

**Professional Client:** Under MiFID II, a client who possesses the experience, knowledge and expertise to make its own investment decisions and properly assess the risks incurred. Initiativ onboards Professional Clients only, either “by nature” (authorized financial institutions, large undertakings) or “on request” (meeting specified experience and portfolio criteria).

**Trader:** A user role and Member category that submits orders on the central order book, manages positions, and executes trades within assigned Eligible Markets and sub-limits. Also called “Normal Member.”

**Trading Limit:** Maintained during each Trading Session, defines the maximum trading capacity available to a Member at any point in time. Calculated from the Member’s eligible Cash Balance and asset Inventory, adjusted for open Orders, applicable fees, and taxes.

**Trading Platform:** The electronic trading system where orders are placed and matched.

**Trading Session:** The period during which the Exchange is open for order entry, order management, and trade execution.

**UK Allowance (UKA):** An allowance issued under the UK Emissions Trading Scheme established by The Greenhouse Gas Emissions Trading Scheme Order 2020, entitling the holder to emit one tonne of carbon dioxide equivalent (CO₂e) during a specified compliance period.

## Order Types and Instructions

**FOK (Fill-Or-Kill):** A Time-in-Force instruction requiring an order to be executed in its entirety immediately upon entry, or cancelled in full. No partial fills are permitted.

**GTC (Good-Till-Cancelled):** A Time-in-Force instruction allowing an order to remain active in the Order Book until fully executed or manually cancelled. GTC orders persist across trading sessions.

**Iceberg Order:** A Limit Order where only a portion of the total quantity (Displayed Quantity) is visible in the Order Book. The remaining Hidden Quantity is automatically refreshed as the displayed portion executes.

**IOC (Immediate-Or-Cancel):** A Time-in-Force instruction requiring an order to execute immediately (in whole or in part), with any unexecuted portion automatically cancelled.

**Limit Order:** An instruction to buy or sell at a specified price or better. For buy orders, the limit price is the maximum price; for sell orders, it’s the minimum price.

**Market Order:** An instruction to buy or sell immediately at the best available price in the Order Book, prioritizing execution speed over price certainty.

**Stop Order:** An instruction that becomes active only when the market reaches a specified trigger price (Stop Price), at which point it converts to a Market Order.

**Stop-Limit Order:** An instruction that becomes active only when the market reaches a specified Stop Price, at which point it converts to a Limit Order at the specified Limit Price.

**TAS (Trade at Settlement):** A scheduled trade order that executes at the official Settlement Price (17:15 CET). Presented to users as “Scheduled Trades” via the Trade Scheduler interface. TAS orders can be scheduled for same-day or future settlement, do not reserve Trading Limit until activation (17:15 CET), and are guaranteed to execute if sufficient resources exist at activation time. Market Makers warehouse buy/sell imbalances to ensure all validated orders execute. See Section 4.4 for complete details.

## Transparency and Regulatory Terms

**LIS (Large-in-Scale):** A pre-trade transparency waiver under MiFIR for orders exceeding specified size thresholds, allowing them to remain hidden from the public Order Book prior to execution.

**MAR (Market Abuse Regulation):** EU Regulation No 596/2014 prohibiting insider trading, market manipulation, and unlawful disclosure of inside information.

**MiFID II:** Markets in Financial Instruments Directive (Directive 2014/65/EU), the EU regulatory framework governing trading venues, transparency, and client protections.

**MiFIR:** Markets in Financial Instruments Regulation, implementing technical standards for MiFID II including transparency and transaction reporting requirements.

**Settlement Price:** The official reference price calculated at the end of the Settlement Window, used for TAS order execution and mark-to-market purposes.

**SSTI (Size-Specific-to-the-Instrument):** A pre-trade transparency waiver for orders in illiquid instruments above specified thresholds. Not applicable to EUA which is classified as liquid.

**VWAP (Volume-Weighted Average Price):** The average price at which a security has traded throughout the day, weighted by volume.

## Account and Settlement Terms

**Custody Account:** The primary Exchange account holding Members’ cash, provided by a banking partner. Cash is immediately available for trading but does not generate yield.

**Yield Account:** An optional Money Market Fund account where Members can allocate cash to earn variable returns, subject to redemption timelines and cut-off times.