NATIXIS - 2018 Registration document and annual financial report

ADDITIONAL INFORMATION Glossary

Acronym/Term

Definition

The lower tier of the US federal judicial system.

District Court Dodd-Frank Act

The Dodd-Frank Wall Street Reform and Consumer Protection Act, more commonly known as the Dodd-Frank Act, is the US law on financial regulation adopted in July 2010 in response to the financial crisis. It is an extensive piece of legislation covering numerous subjects including the creation of the Financial Stability Oversight Council, the management of systemically important financial institutions, the regulation of the highest-risk financial activities, a framework for derivatives markets and reinforced regulation of rating agencies. US regulators (Securities and Exchange Commission, Commodity Futures Trading Commission, etc.) are currently developing precise technical standards with regard to these various provisions. Deferred tax assets, arising from temporary or timing differences between accounting expenses and tax liabilities. Debit Valuation Adjustment, which is symmetrical to the CVA and represents the expected loss, from the counterparty’s perspective, on liability valuations of derivative financial instruments. It reflects the impact of the entity’s own credit quality on the valuation of these instruments. Exposure at default, i.e. the value of exposure to the risk of the debtor defaulting within one year. The Company’s net income (excluding returns on hybrid securities recognized as equity instruments) divided by the weighted average number of shares outstanding. European Banking Authority, established by EU regulation No. 1093/2010 of November 24, 2010. It began operating on January 1, 2011 in London, superseding the Committee of European Banking Supervisors (CEBS). This new body has an expanded mandate. It is in charge of harmonizing prudential standards, ensuring coordination among the various national supervisory authorities and performing the role of mediator. The goal is to establish a Europe-wide supervision mechanism without compromising the ability of the national authorities to conduct the day-to-day supervision of credit institutions. External Credit Assessment Institution, i.e. a credit rating agency that is registered or certified in accordance with EU regulation, or a central bank that issues credit ratings. US Department of Justice.

DOJ

DTAs

DVA

EAD

Earnings per share

EBA

ECAI

European Central Bank

ECB

Enhanced Disclosure Task Force

EDTF EEA EGM

European Economic Area

Extraordinary General Shareholders’ Meeting

European Investment Bank

EIB

Expected loss, i.e. the value of the loss likely to be incurred given the quality of the structure of the transaction and any measures taken to mitigate risk, such as collateral. It is calculated by multiplying exposure at risk (EAD) by Probability of Default (PD) and by Loss Given Default (LGD). Expected Loss Best Estimate, i.e. the institution’s best estimate of expected loss for the defaulted exposure. This estimate takes into account current economic circumstances, exposure status and an estimate of the increase of the loss rate caused by possible additional unexpected losses during the recovery period.

EL

8

ELBE

Europe, Middle East and Africa Employment preservation plan

EMEA

EPP

In a securitization arrangement, the equity tranche refers to the tranche that bears the first losses incurred from defaults within the underlying portfolio.

Equity (tranche)

Environmental and social responsibility

ESR ETF

Exchange-traded fund, i.e. a type of investment fund that tracks a stock market index or asset.

European Union

EU

Euro

EUR

Euro Interbank Offered Rate, the benchmark interest rate on the euro zone’s money market. An independent European supervisory authority located in Paris. On January 1, 2011, it replaced the Committee of European Securities Regulators (CESR). It forms part of the European System of Financial Supervision. Its expanded mandate includes the supervision of rating agencies in Europe and the development of technical standards for EU regulations on the functioning of the financial markets (EMIR, MiFID, “Prospectus” Directive).

EURIBOR

European Securities and Markets Authority (ESMA)

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Natixis Registration Document 2018