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Online glossary of the short-term paper market

A short-term debt instrument that is backed by a form of collateral provided by the issuer, which generally has a maturity of no more than one year and is either interest-bearing or discounted. The assets commonly used as collateral in the case of financing through ABCP conduits include trade receivables, consumer debt receivables and collateralised debt obligations.

ABECP issued under an ECP programme within the ECP market.

ACI - The Financial Markets Association
Founded in France in 1955 following an agreement between foreign exchange dealers in Paris and London. In the years that followed, other national associations were formed and there are now affiliated financial markets associations in 63 countries and individual members in another 5 countries. ACI has the largest membership of any of the international associations in the wholesale financial markets. Also see ACIFOREX.

Application for the STEP Label
Process which consists in requesting a STEP Label for a short term paper programme and which is described in Chapter 2 of the STEP Market Convention

Process of setting up a short term paper programme. This includes, but is not limited to :drafting the different documents (information memorandum, dealer agreemnt, IPA agreement) , enforcing due dilligences, getting legal opinions, marketing the porgrammme, ...

Financial Intermediary who, under appointment of the issuer of a programme, buys on the primary market short term papers and places it to investors.

Declaration of Adherence to the STEP Market Convention
Document whereby the issuer of a programme undertakes to comply with the STEP Market Convention when applying for a STEP label. See Annex 2 of the STEP Market Convention.


The Euro Commercial Paper (ECP) market is a professional short-term debt market which offers opportunities for issuers to raise working capital and other short-term funding as well as for short-term investors to make varied short-term investments.

Eligible Data Provider
Data provider nominated by the ECB and approved by the STEP Market Committee which receives, processes and transmits to the ECB data concerning the issuer and the programme for statistical purpose. See Art. 1.10 and annex 5 of the STEP Market Convention.

ESCB - European System of Central Banks
The ESCB comprises the ECB and the national central banks (NCBs) of all EU Member States whether they have adopted the euro or not.

Euribor ACI
Association founded in 1999 with the launch of the Euro. Its executive members are the national associations of ACI - The Financial Markets Association, participating in the Euro. Associate members are the national associations of ACI - The Financial Markets Association of those European countries that are not participating in the Euro. A strong commitment exists on the part of all participants together with a feeling of being part of the continued construction and development of the financial markets in Europe. 

Euribor EBF
Previous name of EMMI.

European Central Bank - ECB
Central bank for Europe's single currency, the euro. The ECB’s main task is to maintain the euro's purchasing power and thus price stability in the euro area. Also consult www.ecb.europa.eu

European Money Markets Institute - EMMI
The European Money Markets Institute (EMMI), formerly known as Euribor-EBF, is an international non-for-profit association under Belgian law founded in 1999. EMMI provides the following two indexes: Euribor®, the money market reference rate for the euro; and Eonia®, the effective overnight reference rate for the euro.   

Global Programme
Programme composed of diffferent forms of Notes (example : Global Programme composed of US CP and ECP). See Art. 1,9 of the STEP Market Convention.

IPA - Issuing and Paying Agent 
Financial Intermediary who takes care of the administrative linked to the issuance of CP / CD notes issued under a programme. This includes, but is not limited to : creating the issue, taking care of having the issue parametered in the settlement sytem, creating the note, getting a ISIN code for the note, delivering the note to the dealer or initial investor, calculating bonds and redemption, reimbursing principal and proceeds at maturity.

Multi Issuer Programme
Programme issued by more than one issuer. See Art. 1.8 of the Convention.

Negotiable Debt Securities
Consult « TCN »

NEU CP – Negotiable European Commercial Paper
On the French market, Negotiable Debt Securities are financial securities issued on the issuer’s initiative and traded on a regulated or over-the-counter market, each of which represents a right of claim. It includes (1) Certificates of deposit with an original maturity of up to one year issued by credit institutions and the Caisse des dépôs et consignations, (2) Commercial Papers with an original maturity of up to one year issued by investment firms and the issuers referred to in the French Monetary and Financial Code (points 2 to 10 of article L.213-3 and (3) Negotiable medium-term notes (non STEP-eligible) with an original maturity of over one year issued by issuers referred to in the French Monetary and Financial Code (Article L.213-3 except point 10).Source: French Monetary and Financial Code. 

SSS's - Securities Settlement System
System which permits the holding and transfer of securities or other financial assets, either free of payment (FOP) or against payment (delivery versus payment).

Short Term European Paper
Short Term Paper, issued under a STEP labelled programme.

Short-Term European Paper. Initiative aimed at fostering the integration of the European markets for short-term paper through the convergence of market standards and practices, of which the main promoters are the ACI-The Financial Markets Association (ACI) and the European Banking Federation (EBF). Also consult STEPMARKET.

STEP Code of Conduct
Code of Conduct defining, in the STEP Market Convention, the composition, tasks, rights of the STEP Market Committee and the STEP Secretariat. See annex 1 of the STEP Market Convention.

STEP Compliant
Which complies with the STEP requirements laid down in the STEP Market Convention (for a programme, an issuer, a SSS, a timing of update …)

STEP (Standard) Information Memorandum
Information Memorandum of a STEP labelled programme, which complies with the criteria and requirements laid down in the STEP Market Convention. The STEP Standard Information Memorandum is part of the STEP Information Package.

STEP Label
Label granted to STEP-compliant programmes. The STEP criteria and requirements relate to the disclosure of information, the format for disclosure documentation, settlement, and the provision of data for the production of STEP statistics. A STEP label does not relate to the creditworthiness of issuers or the accuracy of the information provided.

STEP Market Comittee
Committee composed of persons of recognised standing and professional experience in the functioning of the European markets for short-term papers and which monitors market developments and establishes and reviews the market standards on which the STEP label is based.

STEP Market Convention
Convention which lays down the criteria and requirements which short-term paper programmes must fulfill to be STEP-compliant, the procedures for granting and withdrawing the STEP label. In order to obtain and maintain the STEP label for a short-term paper programme, the issuer, the features of the programme and the notes issued under the programme must comply with the requirements of the STEP Market Convention, including its Annexes.

STEP Market Website
Website monitored by the STEP Secretariat in order to deliver information to the public about the STEP project and about STEP labelled programmes. This website is open to the public. www.stepmarket.org.

STEP Secretariat
People responsible for granting, witholding or withdrawing the STEP label, administering the STEP Market website and providing data to the ECB for statistical purposes under the supervision of the Euribor-EBF Secretary General.

STEP takes reasonable measures to ensure the quality and accuracy of the information on this Website. However, STEP cannot be held liable in any way for the inaccuracy or incompleteness of any information that is available on or through this Website. In addition, none of the Parties can in any way be held liable or responsible for the content of any Website linked to this Website.

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