UCITS Undertakings for Collective Investment in Transferable Securities Directive.

unconditional heteroskedasticity A condition where a stochastic process has non-constant unconditional second moments.

unconditional homoskedasticity A condition where a stochastic process has constant unconditional second moments.

underlier A primary instrument or variable upon which the value of a derivative instrument depends.

Undertakings for Collective Investment in Transferable Securities Directive Directive specifying EU-wide rules for pooled investment vehicles such as mutual funds.

unexpected loss A risk metric related to the second moment of a portfolio's losses due to default over a specified horizon.

uniform distribution a continuous probability distribution that has constant probability on a finite interval.

Uniform Net Capital Rule The SEC's rule setting minimum capital requirements for broker-dealers trading non-exempt securities.

union The intersection of two sets C and D is the set CD that contains all elements that are either elements of C and/or elements of D.

United States financial regulation Linked article provides an overview.

universal bank A bank that engages in both commercial banking and investment banking activities.

universal volatility model Any of a class of option pricing models that model volatility skew by combining elements of local volatility, jump-diffusion and stochastic volatility models.

unsecured debt Uncollateralized debt.

utilization Given a risk limit, the amount of risk being taken as a fraction of the limit.