Glossary

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.

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value date

The day on which the payment, transfer instruction or other obligation is due and the associated funds and securities are typically available to the receiving participant.

Updated: 16 Apr 2012

Source documents

Date Title
16 Apr 2012 Principles for financial market infrastructures
A
acceptance for settlement access (to an FMI) access criteria (participation requirements in an FMI) advisory netting affiliate aggregator (payment aggregator) authentication authorisation (of a transaction)
B
backtesting batch settlement beneficial owner bilateral netting book entry book-entry system business continuity
C
caps central bank money central counterparty (CCP) central securities depository (CSD) certificate choice of law clearing clearing fund clearing house client/customer (of an FMI participant) close out close-out horizon close-out period collateral collateral arrangement collateral concentration limit collateral liquidation/collateral enforcement (in a collateral arrangement) collateral management service collateral mismatch commercial bank money committed facilities confirmation conflict of laws cooperative arrangement (domestic/international, with respect to FMIs) counterparty counterparty credit limits credit cap credit limit credit risk critical service providers (CSP) cross-border collateral cross-border netting scheme cross-border payment cross-border settlement cross-margining agreement cross-margining arrangement current exposure custodian custody custody risk cut-off time (for an FMI)
D
debit balance debit caps default default fund default waterfall defaulter pays approach deferred net settlement (DNS) delivery versus delivery (DvD) delivery versus payment (DvP) dematerialisation derivative direct holding system direct participant (in an FMI) DvP model 1 DvP model 2 DvP model 3
E
eligible collateral (for central bank credit operations) end user (payment services) exchange-of-value settlement system exit criteria (of an FMI)
F
failed transaction fellow-customer risk final settlement financial market infrastructure (FMI) financial resources (of an FMI) foreign collateral free of payment (FoP) free of transfer (FoT) funds settlement funds transfer system (FTS)
G
general business risk global custodian global custodian agent global note governance gross settlement gross settlement system
H
haircut hybrid system
I
immobilisation indirect holding system indirect participant (in an FMI) individual account initial margin interdependency international central securities depository (ICSD) interoperability intraday liquidity investment risk investor CSD issuer CSD
J
jump-to-default risk
L
large-value payment system (LVPS) legal ownership legal risk link (FMI links) liquidation period liquidity facility liquidity risk liquidity saving features liquidity saving mechanisms loss-sharing arrangement (for an FMI) loss-sharing rule
M
margin mark to market master agreement model risk money settlement multilateral netting
N
net credit (or debit) position net settlement system netting novation
O
offshore system omnibus account open offer open position operational risk overnight credit (overnight money) oversight
P
participant link (between CCPs) payment (funds transfer) payment netting payment order (instruction) message payment system payment versus payment (PvP) peer-to-peer link (between CCPs) physical delivery pledge portability portfolio margining position netting potential future exposure pre-settlement risk prefunded default arrangement principal risk procyclicality provisional transfer
R
re-hypothecation real-time gross settlement (RTGS) reconciliation recovery (of an FMI) replacement cost replacement-cost risk repurchase agreement (repo) retail payment system reuse of collateral reverse repo reverse stress testing rolling settlement
S
securities registrar securities settlement system (SSS) segregated individual account segregation sender limit settlement settlement agent settlement asset settlement bank settlement cycle settlement fail settlement lag (payment lag) settlement obligation settlement risk settlement system single point of failure specific wrong-way risk straight through processing (STP) stress testing substitution survivors pay systemic disruption systemic risk systemically important payment system (SIPS)
T
third-party service provider to an FMI tiered participation arrangement trade repository (TR) transfer
U
unwind
V
value date variation margin
W
waterfall wind down
Z
zero hour rule
value date

The day on which the payment, transfer instruction or other obligation is due and the associated funds and securities are typically available to the receiving participant.

Updated: 16 Apr 2012

Source documents

Date Title
16 Apr 2012 Principles for financial market infrastructures

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