Updated 17 October 2016

The Committee on Payments and Market Infrastructures (CPMI) provides this glossary of payments and market infrastructure terminology as a reference to the standard terms and definitions used in connection with payment, clearing, settlement and related arrangements. Current definitions are now shown alongside the previous ones. You can generate a PDF version of the glossary here.


The substitution of one party for another in respect of an obligation. In a netting and settlement context, the term typically refers to the process of amending a contract between two parties so that a third party is interposed as counterparty to each of the two parties and the original contract between the two parties is satisfied and discharged. See also novation.

Updated: 1 Sep 2016

Source documents


 Additional terms that are not included in the main glossary can be found in the previous version of the glossary.