ANNEX IISupplementary provisions
ANNEX II DEFINITIONS PART 1 Definitions of instrument categories This table provides a detailed description of instrument categories, which national central banks (NCBs) transpose into categories applicable at national level in accordance with this Regulation. Category Description of main features 1. Debt securities (F.3) Debt securities are negotiable financial instruments serving as evidence of debt. Debt securities display the following characteristics: (a) an issue date on which the debt security is issued; (b) an issue price at which investors buy the debt securities when first issued; (c) a redemption date or maturity date, on which the final contractually scheduled repayment of the principal is due; (d) a redemption price or face value, which is the amount to be paid by the issuer to the holder at maturity; (e) an original maturity, which is the period from the issue date until the final contractually scheduled payment; (f) a remaining or residual maturity, which is the period from the reference date until the final contractually scheduled payment; (g) a coupon rate that the issuer pays to holders of the debt securities; the coupon may be fixed throughout the life of the debt security or vary with inflation, interest rates, or asset prices. Bills and zero-coupon debt securities offer no coupon interest; (h) coupon dates, on which the issuer pays the coupon to the securities’ holders; (i) the issue price, redemption price, and coupon rate may be denominated (or settled) in either national currency or foreign currencies. The credit rating of debt securities, which indicates the credit worthiness of individual debt securities issues, is assigned by recognised agencies on the basis of rating categories. With regard to point (c), the maturity date may coincide with the conversion of a debt security into a share. In this context, convertibility means that the holder may exchange a debt security for the issuer’s common equity. Exchangeability means that the holder may exchange the debt security for shares of a corporation other than the issuer. Perpetual securities, which have no stated maturity date, are classified as debt securities. 1a. Short-term debt securities (F.31) Debt securities whose original maturity is one year or less, and debt securities repayable on demand of the creditor. 1b. Long-term debt securities (F.32) Debt securities whose original maturity is more than one year, or of no stated maturity. 2. Equity (F.51) Equity is a financial asset that is a claim on the residual value of a corporation, after all other claims have been met. Ownership of equity in legal entities is usually evidenced by shares, stocks, depository receipts, participations, or similar documents. Shares and stocks have the same meaning. Equity is sub-categorised into the following: listed shares (F.511); unlisted shares (F.152); and other equity (F.519). 2a. Listed shares (F.511) Listed shares are equity securities listed on an exchange. Such an exchange may be a recognised stock exchange or any other form of secondary market. Listed shares are also referred to as quoted shares. The existence of quoted prices of shares listed on an exchange means that current market prices are usually readily available. 3. Investment fund shares or units (F.52) Investment fund shares are shares of an investment fund if the fund has a corporate structure. They are known as units if the fund is a trust. Investment funds are collective investment undertakings through which investors pool funds for investment in financial and/or non-financial assets. Investment fund shares are subdivided into: money market fund (MMF) shares or units (F.521); and other investment fund shares or units other than MMF shares or units (F.529). PART 2 Definitions of sectors This table provides a description of sector categories, which NCBs transpose into categories applicable at national level in accordance with this Regulation. Sector Definition 1. Non-financial corporations (S.11) The sector non-financial corporations (S.11) consists of institutional units which are independent legal entities and market producers, and whose principal activity is the production of goods and non-financial services. This sector also includes non-financial quasi-corporations. 2. The central bank (S.121) The sub-sector the central bank (S.121) consists of all financial corporations and quasi-corporations whose principal function is to issue currency, to maintain the internal and external value of the currency and to hold all or part of the international reserves of the country. 3. Deposit-taking corporations except the central bank (S.122) The sub-sector deposit-taking corporations except the central bank (S.122) includes all financial corporations and quasi-corporations, except those classified in the central bank and in the MMF sub-sectors, which are principally engaged in financial intermediation and whose business is to receive deposits from institutional units and, for their own account, to grant loans and/or to make investments in securities. 4. Money market funds (MMFs) (S.123) The sub-sector MMFs (S.123) as collective investment schemes consists of all financial corporations and quasi-corporations, except those classified in the central bank and in the credit institutions sub-sectors, which are principally engaged in financial intermediation. Their business is to receive investment fund shares or units as close substitutes for deposits from institutional units and, for their own account, to make investments primarily in MMF shares/units, short-term debt securities, and/or deposits. 5. Non-MMF investment funds (S.124) The sub-sector non-MMF investment funds (S.124) consists of all collective investment schemes, except those classified in the MMF sub-sector, which are principally engaged in financial intermediation. Their business is to receive, from institutional units, investment fund shares or units which are not close substitutes for deposits and, on their own account, to make investments primarily in financial assets other than short-term financial assets and in non-financial assets (usually real estate). Non-MMF investment funds cover investment trusts, unit trusts and other collective investment schemes whose investment fund shares or units are not seen as close substitutes for deposits. 6. Other financial intermediaries, except insurance corporations and pension funds (S.125) The sub-sector other financial intermediaries, except insurance corporations and pension funds (S.125) consists of all financial corporations and quasi-corporations which are principally engaged in financial intermediation by incurring liabilities in forms other than currency, deposits, or investment fund shares, or in relation to insurance, pension and standardised guarantee schemes from institutional units. 7. Financial vehicle corporations engaged in securitisation transactions (‘FVCs’) FVCs are undertakings carrying out securitisation transactions. FVCs that satisfy the criteria of an institutional unit are classified in S.125, otherwise they are treated as an integral part of the parent. 8. Financial auxiliaries (S.126) The sub-sector financial auxiliaries (S.126) consists of all financial corporations and quasi-corporations which are principally engaged in activities closely related to financial intermediation but which are not financial intermediaries themselves. 9. Captive financial institutions and money lenders (S.127) The sub-sector captive financial institutions and money lenders (S.127) consists of all financial corporations and quasi-corporations which are neither engaged in financial intermediation nor in providing financial auxiliary services, and where most of either their assets or their liabilities are not transacted on open markets. 10. Insurance corporations (S.128) The sub-sector insurance corporations (S.128) consists of all financial corporations and quasi-corporations which are principally engaged in financial intermediation as the consequence of the pooling of risks mainly in the form of direct insurance or reinsurance. 11. Pension funds (S.129) The sub-sector pension funds (S.129) consists of all financial corporations and quasi-corporations which are principally engaged in financial intermediation as the consequence of the pooling of social risks and needs of the insured persons (social insurance). Pension funds as social insurance schemes provide income in retirement, and often benefits for death and disability. 12. General government (S.13) The sector general government (S.13) consists of institutional units which are non-market producers whose output is intended for individual and collective consumption, and are financed by compulsory payments made by units belonging to other sectors, and institutional units principally engaged in the redistribution of national income and wealth. The general government sector is divided into four sub-sectors: central government (S.1311); state government (S.1312); local government (S.1313); and social security funds (S.1314). 13. Households (S.14) The sector households (S.14) consists of individuals or groups of individuals as consumers and as entrepreneurs producing market goods and non-financial and financial services (market producers) provided that the production of goods and services is not by separate entities treated as quasi-corporations. It also includes individuals or groups of individuals as producers of goods and non-financial services for exclusively own final use. 14. Non-profit institutions serving households (S.15) The sector non-profit institutions serving households (S.15) consists of non-profit institutions which are separate legal entities, which serve households and are private non-market producers. Their principal resources are voluntary contributions in cash or in kind from households in their capacity as consumers, from payments made by general governments and from property income. PART 3 Definition of financial transactions 1. The actual reporting agents report transactions data as set out in Article 3(5). 2. Financial transactions are defined as transactions in financial assets and liabilities between resident institutional units, and between them and non-resident institutional units. A financial transaction between institutional units is a simultaneous creation or liquidation of a financial asset and the counterpart liability, or a change in ownership of a financial asset, or an assumption of a liability. Accrued interest not yet paid is recorded as a financial transaction, showing that interest is reinvested in the relevant financial instrument. Financial transactions are recorded at transaction values, that is, the values in national currency at which the financial assets and/or liabilities involved are created, liquidated, exchanged or assumed between institutional units. The transaction value includes accrued interest and does not include service charges, fees, commissions, and similar payments for services provided in carrying out the transactions, nor taxes on the transactions. Valuation changes are not financial transactions. 3. Financial transactions are measured as the difference between securities positions (including accrued interest) at end-period reporting dates, from which the effect of changes due to influences from ‘revaluation adjustments’ (caused by price and exchange rates changes) and ‘other changes in volume’ is removed. 4. Price and exchange rate revaluations refer to fluctuations in the valuation of the securities that arise either from changes in the price of securities and/or in exchange rates that affect the values expressed in euro of securities denominated in a foreign currency. As these changes represent holdings gains or losses which are not due to financial transactions, these effects need to be removed from the transactions data. — Price revaluations include changes that occur in the reference period in the value of end-period positions because of changes in the reference value at which they are recorded, i.e. holding gains or losses. — Exchange rate revaluations refer to movements in exchange rates against the euro that occur between end-period reporting dates, which give rise to changes in the value of foreign currency securities expressed in euro. 5. Other changes in volume refer to changes in the volume of assets which may arise on the investor side, due to (a) the alteration in the statistical coverage of the population (e.g. the reclassification and restructuring of institutional units ( 1 ) ); (b) the reclassification of assets; (c) reporting errors that have been corrected in data reported only over a limited time range; (d) the writing-off or writing-down of bad debts, when these are in the form of securities, by creditors, and the unilateral cancellation of liabilities by debtors (known as debt repudiation); or (e) changes of residence of the investor. PART 4 Definitions of security-by-security attributes Field Description Security identification number A code that uniquely identifies a security. It is the ISIN code if this has been assigned to the security, or another security identification number. Positions at nominal value (in nominal currency or euro or positions in number of shares or units) Number of units of a security, or aggregated nominal amount if the security is traded in amounts rather than in units, excluding the accrued interest. Positions at market value Amount held of a security at the price quoted in the market in euro. NCBs must in principle require accrued interest to be reported either under this position or separately. However, NCBs may at their discretion require data excluding accrued interest. Other changes in volume (nominal value) Other changes in the volume of the security held, at nominal value in nominal currency/unit or euro. Other changes in volume (market value) Other changes in the volume of the security held, at market value in euro. Financial transactions The sum of purchases minus sales of a security, recorded at transaction value in euro. Portfolio investment or direct investment The function of the investment according to the classification of balance of payments statistics ( 2 ) . Price value Price of the security at the end of the reference period. Quotation basis Indicates whether the security is quoted in percentage or in units. Revaluation adjustments Price and exchange rate revaluations, as referred to in Part 3. Security currency of denomination The International Standards Organisation code, or equivalent, of the currency used to express the price and/or the amount of the security. ( 1 ) i.e. mergers and acquisitions. ( 2 ) Guideline ECB/2011/23 of 9 December 2011 on the statistical reporting requirements of the European Central Bank in the field of external statistics ( OJ L 65, 3.3.2012, p. 1 ).