Exchange (Le Nouveau Marche), the Deutsche Borse AG (Neuer Markt), the Amsterdam Exchanges (NMAX), and the Brussels Stock Exchange (Euro.NM Belgium). Euro-note Short- to medium-term debt instrument sold in the Eurocurrency market. Euroyen bonds Eurobondsdenominated in Japanese yen. European, Australia, and Far East index (EAFE index) Stock index, computed by Morgan Stanley Capital International. European Association of Securities Dealers Automated Quotation (EASDAQ) European equivalent of Nasdaq. European Bank for Reconstruction and Development Bank targeted at Eastern Europe and the former Soviet Union. European Central Bank (ECB) Bank created to monitor the monetary policy of the countries that have converted to the Euro from their local currencies. The original 11 countries are: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain. European Currency Unit (ECU) An index of foreign exchange consisting of European currencies, originally devised in 1979. Also see Euro. European exchange rate mechanism (ERM) The system that countries in the European Union once used to pay exchange rates within bands around an ERM central value. European Exercise A feature of an option that stipulates that the option may only be exercised at its expiration. Therefore, there can be no early assignment with this type of option. Most index options are European-style exercise. European Monetary System (EMS) A system adopted by European Community members with the aim of promoting stability by limiting exchange-rate fluctuations. The system was originated in 1979 by the nine members of the European Community (EC). The EMS comprised three principal elements: the European Currency Unit (ECU), the monetary unit used in EC transactions; the Exchange Rate Mechanism, ERM, whereby those member states taking part agreed to maintain currency fluctuations within certain agreed limits; and the European Monetary Cooperation Fund, which issues the ECU and oversees the ERM. The 1992 Maastricht Treaty provided for the move to Economic and Monetary Union (EMU), including a European Monetary Institute to coordinate the economic and monetary policy of the EU, a European Central Bank (ECB) to govern these policies, and the presentation of a single European currency. European option Option that may be exercised only at the expiration date. Related: American option. European Options Exchange (EOE) Now AEX-Optiebeurs. See: Amsterdam Exchanges (AEX). European-style exercise A method of exercisingoptions contracts in which the buyer can only exercise the contract on the last day before expiration. European-style option An option contract that can be exercised only on the expiration date. European terms A foreign exchange quotation that states the foreign currency price of one U.S. dollar. Opposite of direct quote. European Union (EU) An economic association of European countries founded by the Treaty of Rome in 1957 as a common market for six nations. It was known as the European Community until January 1, 1994 and currently comprises 15 European countries. Its goals are a single market for goods and services without any economic barriers, and a common currency with one monetary authority. Evaluation period The time interval over which funds assess a money manager's performance. Even lot See: Round lot Evening up Buying or selling to offset an existing