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.

defaulter pays approach

An arrangement whereby each participant (for example, FMI participants, or parties in bilateral trades) is required to cover exposures it has vis-à-vis other participants in the arrangement. As a result, losses from a party's default are borne by the defaulting party through the non-defaulter's liquidation/enforcement of the collateral posted by the defaulting party.

Updated: 16 Jun 2015

Source documents


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