UBS Dictionary of Banking

T/B
Abbreviation for treasury bill.

T-Bill
Short for treasury bill.

Ta

tacit confirmation / stille Bestätigung / confirmation tacite / conferma tacita
Instrument used in connection with letters of credit, whereby the notifying bank issues a commitment at the request of the beneficiary to make a payment as per the conditions of the letter of credit on presentation of the proper documentation, without having a corresponding confirmation order from the opening bank.

takeover / Übernahme / reprise / acquisizione
Also referred to as acquisition. The transfer of control of a company from one group of shareholders to another. Takeovers are linked to a change in the top management of the target company, the latter being integrated in the acquiring company once the takeover is complete. A distinction is drawn between friendly takeovers and hostile takeovers. See also merger.

takeover bid / Übernahmeangebot / offre de reprise / offerta di acquisizione
See public offer.

takeover financing / Übernahmefinanzierung / financement de reprise de sociétés / finanziamento dell'acquisizione
Raising the necessary financial resources for the acquisition of a controlling interest in one company by another company. Such transactions are frequently combined with bank loans, bank guarantees and securities issues. See also leveraged buyout.

tangible asset
Synonym for real asset. See also intangible assets.

Tankan survey / Tankan-Umfrage / indice Tankan / indice Tankan
Also referred to as the Tankan report. Comprehensive survey of Japanese companies conducted each quarter by the Bank of Japan and regarded as the benchmark for Japanese business sentiment.

Tankan report
Synonym for Tankan survey.

TARGET / TARGET / TARGET / TARGET
Trans-European automated realtime gross settlement express transfer system. Inter-EMU payment system consisting of a network of realtime clearing systems (one per member country). TARGET is configured to be linked to compatible systems in non-EMU countries.

tax at source / Quellensteuer / impôt à la source / imposta alla fonte
Tax collected at source by withholding the amount of the tax from payments due to the taxpayer. See withholding tax.

tax value / Steuerwert / valeur fiscale / valore fiscale
The significant value of an asset for taxation purposes. The Federal Tax Authorities issue a special list of binding tax values for a large number of securities.

taxation of savings income / Zinsbesteuerung / imposition des revenus de l'épargne / tassazione dei redditi da risparmio
EU taxation of interest income from assets belonging to natural persons and held outside their country of residence.

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Te

technical analysis / technische Analyse / analyse technique / analisi tecnica
Also referred to as chart analysis. Analysis of historical price and volume data for a market as a basis for forecasting future price trends for a traded asset or commodity.

technical reaction / technische Reaktion / réaction technique / reazione tecnica
Trend moving in the opposite direction in reaction to a prior upward or downward trend.

tel quel / tel quel / tel quel / tel quel
French term for flat; without accrued interest. Expression used in the trading of fixed-interest securities to indicate that the price of the security includes current interest and any future interest income not yet paid (tel quel price). This price is quoted on the Swiss Exchange for dual currency bonds and bond issues in default.

Telecommunications / Telekommunikationsdienste / Télécommunications / Servizi di telecomunicazione
Equity sector incorporating shares of companies offering any kind of telecom services. The respective MSCI Sector index acts as a benchmark for shares of companies belonging to this sector.

Telekurs / Telekurs / Telekurs AG / Telekurs
A joint venture between Swiss banks for the settlement of interbank payments (SIC) and the transmission of stock exchange data and financial information, as well as promoting the use of cashless payments.

telephone banking
Synonym for phone banking.

tenant's guarantee / Mietergarantie / garantie de loyer / garanzia di affitto
Deposit paid as security for a tenant's liabilities. The maximum deposit under Swiss law is three months' rent. The tenant's guarantee is held in safekeeping in an interest-bearing bank account, the net interest income accruing to the tenant.

tender / Tender / adjudication / tender
Selling technique in the issuing business whereby the price/return are not defined by the issuer or seller but instead on the basis of bids submitted by the investors or buyers.

tender guarante
Synonym for bid bond.

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Th

theoretical value / theoretischer Wert / valeur théorique / valore teorico
Synonym for fair value (2).

theta / Theta / thêta / theta
Measure of the change in an option's price due to a decrease in the time left to maturity. The theta coefficient reflects how options lose their value over the course of time.

Three month Libor / Dreimonats-Libor / Libor à trois mois / Libor a 3 mesi
London Interbank Offered Rate for a term of three months.

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Ti

ticker / Ticker / ticker / ticker
A telegraphic installation which immediately transmits the valid rates during a stock exchange session. It also transmits items of news.

ticker symbol / Aktiensymbol / symbole de l'action / simbolo dell'azione
Abbreviation of a share name for identification purposes, e.g. UBS N for registered shares of UBS AG.

tier 1 / Tier 1 / noyau dur du capital / tier 1
A bank's core capital, comprising its share capital, open reserves and profit brought forward. The core capital is part of the bank's equity and must comprise at least 50% of the said. See also tier 2, tier 3.

tier 2 / Tier 2 / fonds propres complémentaires / tier 2
Supplementary capital that forms part of bank's equity. The tier 2 capital comprises hybrid trading instruments, hidden reserves in the value adjustments and provisions position, fluctuation reserves in the fixed assets, loans and bonds with an original subordinated term to maturity of at least 5 years and 50% of the further contributions the bank is liable to make on a certain amount. See also tier 1.

tier 3 / Tier 3 / fonds propres surcomplémentaires / tier 3
Category of a bank's equity that comprises the additional capital. See also tier 1, tier 2.

time deposit / Festgeld / dépôt à terme / deposito vincolato
Bank deposits which are to be held for a specified period of time at a set rate of interest. In Switzerland the periods are generally between 1 and 12 months and the minimum amount usually CHF 100,000. On the balance sheet time deposits are shown as amounts due to customers (term).

time value (of an option) / Zeitwert / valeur temps / valore temporale
With options, the difference between the price of an option and its intrinsic value.

timing / Timing / timing / timing
Selecting the correct point in time to buy or sell securities.

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To

to the order of / Orderklausel / clause à ordre / clausola all'ordine
The notation «to the order of» after the name of the beneficiary makes it possible to transfer securities by endorsement. The clause turns the security into an instrument to order (bill of lading). In the case of legal instruments made out to order (e.g. bill of exchange, cheque, registered share) the notation is not essential because these securities are already deemed to be endorsed.

tom next
See tomorrow next.

tomorrow next / Tomorrow Next / tomorrow next / tomorrow next
Also: tom next. Foreign exchange and money market trades executed tomorrow for delivery on the next business day.

total assets / Bilanzsumme / somme du bilan / totale di bilancio
Also: total liabilities. The sum of assets or liabilities reported by a company in its balance sheet. As off-balance-sheet operations become increasingly significant, this indicator only reflects part of the overall business of a bank. See also bank balance sheet.

total liabilities
Synonym for total assets.

total return / Total Return / total return / Total Return
The total return on a security or portfolio of securities. The total return on a share comprises the price changes, distributions of interest and dividends, and par value repayments.

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Tr

tracking error / Tracking-Error / écart de suivi / tracking error
Also: deviation of return. Parameter measuring the volatility of the relative performance which indicates the (e.g. monthly) fluctuation of the difference between the portfolio and the benchmark. Especially suitable for monitoring risks incurred as a result of investment decisions.

trade / Vertragsabschluss / contrat / contratto
Any stock market order concluded. On the Swiss Exchange a trade is a securities transaction effected between members either on-exchange or over-the-counter.

trade bill / Warenwechsel / effet de commerce / cambiale commerciale
Bill of exchange with a commodity transaction as the underlying. See also finance bill.

trade confirmation / Börsenabrechnung / décompte de Bourse / conteggio di borsa
Statement prepared by the bank for the client recording the sale or purchase of securities.

traded option / Traded Option / option négociable / traded option
Option traded on the stock exchange in the form of a contract with a central counterparty.

trading market / Trading-Markt / marché de trading / mercato di trading
A market that is driven by short-term trading considerations and chart analysis.

trading price / Abschlusskurs / cours fait (lors d'une séance de Bourse) / corso negoziato
The price at which a stock exchange transaction is effected. Each trading price on the Swiss Exchange is registered and published (provided a round lot has been traded). By contrast, an asked price is the lowest price offered by the seller and a bid price is the highest price a buyer is prepared to offer. The first price paid for a listed security on a given day is called the opening price, the last paid price being the closing price.

trading range / Trading-Range / rectangle / trading range
The bandwidth within which the price of a certain security is expected to trade over a given period.

trading ring
Synonym for ring.

trading suspension / Stop Trading / stop trading / stop trading
Cessation of trading in a certain security during an ongoing trading session. On Swiss Exchange, a Stop Trading is automatically triggered as soon as there is a certain percentage difference between two paid prices. See also à la criée trading.

tranche / Tranche / tranche / tranche
Also: section. Part of a uniform capital issue (bond) which is offered for subscription in several instalments. The individual tranches usually have different maturities and offer different rates of interest, and therefore have different issuing and market prices.

transfer / Überweisung / virement / bonifico
Cashless remittance of an amount of money from one account to another.

transfer credit / Transferkredit / crédit de transfert / credito di trasferimento
Blanket credit line based on a loan agreement and on bilateral agreements in the form of a treaty or correspondence between Switzerland and a developing nation.

transfer risk / Transferrisiko / risque de transfert / rischio di trasferimento
The risk that a transfer covered by a contract cannot be effected between one currency area and another, or that such transfers are restricted as a result of state intervention.

transferable letter of credit / übertragbares Akkreditiv / crédit documentaire transférable / credito documentario trasferibile
Documentary credit under the terms of which the beneficiary may instruct the expressly authorized bank to make all or part of the credit available to one or more other beneficiaries (second beneficiaries).

transition economy / Schwellenland / pays émergent / Paese emergente
Synonym for emerging market.

transparency
post-trade transparency, pre-trade transparency

traveller's cheque (GB); traveler's check (USA) / Reisecheck / chèque de voyage / assegno di viaggio
Medium of payment created especially for use in international travel and tourism. In contrast to conventional cheques, traveller's cheques must be paid in advance by the buyer. They can be cashed at most banks and many businesses in other sectors (shops, hotels, etc) subject to verification. Traveller's cheques are issued by banks, groups of banks or travel organizations and are made out in round amounts. Example: Swiss Bankers Travellers Cheque.

treasury bill
See Treasury note.

Treasury bond / Treasury-Bond / Treasury bond / Treasury bond
Medium- to long-term debt instruments issued by the US Treasury in the form of a bond, with maturities mostly longer than 10 years. See also treasury bill.

Treasury note / Treasury-Note / Treasury note / Treasury note
Short- and medium-term debt certificates issued in bill or note form by a government. In Switzerland, the Federal Government issues Treasury notes with maturities of 1 to 2 years, occasionally also bills with shorter maturities (3 months). Other short- and medium-term debt instruments issued by the Confederation, the cantons and the municipalities are now usually called rescriptions. Treasury notes can be discounted at the Swiss National Bank if their remaining term to maturity is less than 3 months. In the USA, a distinction is made between treasury bills (short-term, 3-12 months) and treasury notes (medium-term, 1-5 years).

trend / Tendenz / tendance / tendenza
The general tendency of a market to move in a certain direction (e.g. price developments on a stock exchange or forex market).

Triple A / Triple A / triple A / triple A
Synonym for AAA.

trust / Trust / trust / trust
(1) A sum of money or property held and administered by trustees on behalf of a third party. Under UK/US law, both the trustees and the beneficiaries are regarded as being the owners of the assets or property.
(2) A group with a dominant market position. 'Trust' is seldom used in this sense these days, with the exception of phrases such as 'anti-trust legislation'.
(3) Previously common short form for unit trust (= investment fund).

trustee / Trustee / trustee / trustee
Person who holds a sum of money or property in trust for a third party.

trustee security status / Mündelsicherheit / sécurité requise pour les placements pupillaires / sicurezza di un investimento pupillare
Legally required security for investments of the assets of individuals under guardianship. In Switzerland, the Civil Code sections 401 and 402 provide that such funds must be placed in low-risk, interest-bearing investments. Savings deposits and public sector bonds are permitted. Investments in equities, participation certificates and derivatives, on the other hand, are prohibited.

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Tu

turnaround / Turnaround / turnaround / turnaround
An upturn in the underlying trend for a sector or company, providing a good opportunity to buy into specific securities.

turnover commission / Umsatzkommission / commission de mouvement / commissione di movimentazione
Also referred to as turnover fee. Commission charged to the accountholder and calculated on the basis of the current account turnover.

turnover tax / Umsatzabgabe / droit de timbre de négociation / tassa di negoziazione
Stamp duty levied by the Swiss government on the purchase and sale of Swiss and foreign securities by Swiss securities dealers.

Tw

twin deficit / Zwillingsdefizit / double déficit / deficit gemelli
Simultaneous budget and current account deficits.

twin shares / Zwillingsaktien / actions jumelées / azioni gemelle
Shares of two legally independent companies, whose shareholders must be identical and which were joined together as the result of a merger and are inseparably linked.

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