ISITC Glossary

Term Acronym Definition Related ISITC Working Group or Forum
144A 144A A regulation enforced by the U.S. Securities and Exchange Commission that sets restrictions on trades of privately placed securities so that these investments can be traded among qualified institutional buyers, and with shorter holding periods—six months or a year, rather than the customary two-year period. Regulatory
180 Letter 180 Letter A legally binding Liability Letter sent between DTC participants to hold counterparties on unsettled trades liable for the corporate action elections being made by the purchaser of the security. Regulatory
305C 305C US Tax Regulation targets deemed distributions to consider US witholding tax implications Regulatory
871M 871M US Tax Regulation targets applicability of US witholding tax on US-source dividend payments for non-US persons Regulatory
Acceptance Priority Level Not applicable Priority levels apply to purchase offers where multiple securities are sought by the purchaser who has a  limited pool of purchase funds and the purchaser will assign a priority level which is the order in which  each security will be purchased prior to purchasing the next security.  It will follow this order until it has used up the funds for purchase. The last priority level security purchased by the purchaser is usually subject to proration and the securities later in the order are not purchased at all, once all the funds are used up. Corporate Actions
Agent Lending Not applicable A lending agent facilitates the transaction by seeking out a borrower and negotiating the loan terms on behalf of the fund sponsor.   In exchange for the security, the borrower provides collateral that can come in the form of cash or non-cash. All
Alternative Investment Fund Managers Directive AIFMD Regulation – The Alternative Investment Fund Managers Directive (AIFMD) is a European Union (EU) regulation that applies to hedge funds, private equity funds, and real estate funds. The AIFMD sets standards for marketing around raising private capital, remuneration policies, risk monitoring, and reporting, as well as overall accountability. Regulatory
Anti-Money Laundry Directive AMLD Regulation – The anti money laundering directives (AMLD), also known as simply money laundering directives, are intended to establish a consistent regulatory environment across the EU, addressing emerging money laundering and terror financing typologies and helping to close compliance gaps and blind spots. Regulatory
Bank of England BOE An entity/organization – The Bank of England (BoE) is the UK’s central bank Regulatory
Bank Resolution and Recovery Directive-2 BRRD2 Regulation – The Bank Recovery and Resolution Directive (BRRD) establishes a common approach within the European Union (EU) to the recovery and resolution of banks and investment firms. Regulatory
Beneficial Owner Round Up Not applicable A feature of a corporate action event where shareholders can place a request for additional shares to round up their positions.  Usually to round up to the nearest whole share, but occasionally to different round lot sizes.  This impacts Omnibus account the most. Corporate Actions
Blue Sky laws Not applicable The formal registration process in order for securities to be sold to US holders.  It must be performed in each state according to the laws of that state. Regulatory
Captial Markets Union CMU The Capital Markets Union is an economic policy initiative launched by the former president of the European Commission, Jean-Claude Junker in the initial exposition of his policy agenda on 15 July 2014. The main target was to create a single market for capital in the whole territory of the EU by the end of 2019. The reasoning behind the idea was to address the issue that corporate finance relies on debt and the fact that capitals markets in Europe were not sufficiently integrated so as to protect the EU and especially the Eurozone from future crisis. Regulatory
Cash in Lieu CIL A receipt of cash in lieu of fractions. Corporate Actions
Central Bank of Ireland CBI An entity/organization – The Central Bank of Ireland is Ireland’s central bank Regulatory
Central Counterparty CCP Used to manage counterparty default risk.  Parties will make OTC derivative trades on a SEF, which will then pass them to a CCP, which then sits between the parties and protects both parties from the default of the other. Derivatives
Central Counterparty Clearing Party CCP An entity/organization All
Central Securities Depositaries Regulation CSDR Regulation – CSDR introduces new measures for the authorisation and supervision of EU Central Security Depositories (CSDs) and sets out to create a common set of prudential, organisational, and conduct of business standards at a European level. Regulatory
Central Securities Depository CSD Central Securities Depository All
Chicago Mercantile Exchange CME Largest derivatives exchange.  Also known as the “Merc”.  Also operates a CCP. Derivatives
China Securities Regulatory Commission CSRC An entity/organization – The China Securities Regulatory Commission (CSRC) is an institution of the State Council of the People’s Republic of China (PRC), with ministry-level rank.[1] It is the main regulator of the securities industry in China. Regulatory
Client Directed Lending CDL The account owner does their own lending but they use their custodian to facilitate the movements and loan collateral. Flow:  Account ABC lends for their account ABC who is custodied with participant 0123 to borrower XYZ who is with custodian 0789. Custodian only performs the delivery and does not track the collateral. CA Instruction Flow.   Account ABC instructs the borrower XYZ directly per terms of their borrowing agreement.  The custodian is not involved. Corporate Actions
Coexistence Not applicable Alignment of ISO 20022 and ISO 15022 to ensure backward compatibility. All
Commission de Surveillance du Secteur Financier (Luxembourg) CSSF An entity/organization – The Commission de Surveillance du Secteur Financier (CSSF) is responsible for the financial regulation in Luxembourg.[1] The CSSF is responsible for the supervision of credit institutions, experts in the financial sector, investment companies, pension funds, regulated securities markets and their operators, multilateral trading facilities and payment institutions. The CSSF is the competent authority for the public auditor oversight. Regulatory
Commission Nationale pour la Protection des DonnĂ©es (Luxembourg) CNPD An entity/organization –   The National Data Protection Commission (Commission Nationale pour la Protection des DonnĂ©es – CNPD) is an independent public institution.  It verifies the legality of the processing of personal data and ensures the respect of personal freedoms and fundamental rights with regard to data protection and privacy. The CNPD verifies if personal data is processed in accordance with the following provisions: ❯the General Data Protection Regulation (GDPR); ❯the Act of 1 August 2018 on the organisation of the National Data Protection Commission and the general data protection framework; ❯the Act of 1 August 2018 on the protection of individuals with regard to the processing of personal data in criminal and national security matters; ❯the Act of 30 May 2005 regarding the specific rules for the protection of privacy in the sector of electronic communications; ❯other legal texts containing specific provisions on the protection of personal data. Regulatory
Committee on Uniform Securities Identification Procedures CUSIP A nine character identification code Reference Data
Common Reporting Standards CRS Standard – The Common Reporting Standard ( CRS) is an information standard for the Automatic Exchange Of Information ( AEOI) regarding bank accounts on a global level, between tax authorities, which the Organisation for Economic Co-operation and Development (OECD) developed in 2014. Its purpose is to combat tax evasion Regulatory
Companies Registration Office (Ireland) CRO An entity/organization – The Companies Registration Office is the central repository of public statutory information on Irish companies and business names. The CRO operates under the aegis of the Department of Business, Enterprise and Innovation. Regulatory
Contra Cusip Not applicable Contra-CUSIP number assigned by DTC for use in reorganization activities. A DTC User CUSIP associated with the event for the purpose of segregating positions. Corporate Actions
Corporate Action Cancellation Advice CACN A specific message type in ISO 20022 message standard Corporate Actions
Corporate Action Event Code within a SWIFT message CAEV A specific message element within a message Corporate Actions
Corporate Action Event Processing Status Advice CAPS A specific message type in ISO 20022 message standard Corporate Actions
Corporate Action Instruction CAIN A specific message type in ISO 20022 message standard Corporate Actions
Corporate Action Instruction Cancellation Request CAIC A specific message type in ISO 20022 message standard Corporate Actions
Corporate Action Instruction Cancellation Request Status Advice CACS A specific message type in ISO 20022 message standard Corporate Actions
Corporate Action Instruction Statement Report CAST A specific message type in ISO 20022 message standard Corporate Actions
Corporate Action Instruction Status Advice CAIS A specific message type in ISO 20022 message standard Corporate Actions
Corporate Action Movement Confirmation Advice CACO A specific message type in ISO 20022 message standard Corporate Actions
Corporate Action Movement Preliminary Advice CAPA A specific message type in ISO 20022 message standard Corporate Actions
Corporate Action Movement Preliminary Advice Cancellation Advice CAPC A specific message type in ISO 20022 message standard Corporate Actions
Corporate Action Movement Reversal Advice CARE A specific message type in ISO 20022 message standard Corporate Actions
Corporate Action Notification CANO A specific message type in ISO 20022 message standard Corporate Actions
Corporate Action Notification Eligible Balance CANO-E A specific message type in ISO 20022 message standard Corporate Actions
Cover Protect Not applicable The purpose of the cover/protect or guaranteed delivery is to allow an investor to participate in a voluntary corporate action even if it doesn’t hold securities in its account at the time the corporate action expires. The securities might not have been delivered by another party or they might be out on loan. Corporate Actions
Credit Default Swap CDS OTC derivative trade type where a periodic payment is made for protection against default of an underlying credit Derivatives
Cross-currency XCCY OTC derivative trade type where a periodic payment in one currency is made by one part and periodic payment in a different currency is made by the other. Derivatives
Cyberspace Admin of China CAC An entity/organization – The Cyberspace Administration of China is the central Internet regulator, censor, oversight, and control agency for the People’s Republic of China. Regulatory
Declared Dividend Not applicable A portion of a company’s profits that have been decided to be paid out as dividends to the shareholders by the board of directors. Corporate Actions
Deliver Free DF An instruction to deliver specified securities to a specified party without receipt of payment Settlements
Delivery against payment DvP An instruction to deliver specified securities to a specified party and to receive a specified amount of money Settlements
Department of Financial Services (NY) DFS An entity/organization – The New York State Department of Financial Services (DFS or NYSDFS) is the department of the New York state government responsible for regulating financial services and products, including those subject to the New York insurance, banking and financial services laws.[ Regulatory
Depository Trust & Clearing Corporation DTCC An entity/organization All
Directive (EU) Not applicable A directive is a legislative act that sets out a goal that all EU countries must achieve.  The EU directive lists certain objectives that must be achieved in every Member State. The responsibility of achieving the objectives is in the hands of the national authorities, however, the manner in which they will achieve them is in their hands. In addition to the objectives, the EU directive will also list the date by which the said objectives must be completed. Regulatory
Discretionary Lending Not applicable The institution where the account is custodied performs all the lending activities for the account. They are responsible for facilitating and negotiating loan transactions, evaluating borrower credit risk, providing collateral monitoring and/or reinvestment, on-going loan maintenance and recordkeeping etc. All
Dividend Reinvestment Plan DRIP Dividends declared by an issuer where the holder can elect to have the dividend proceeds reinvested into shares.  The default is to take the cash. Corporate Actions
Environment, Social, Governance ESG Three factors or considerations for the investment in a company or business All
ePrivacy Regulation ePR Regulation – The ePrivacy Regulation is a proposal for the regulation of various privacy-related topics, mostly in relation electronic communications within the European Union. Regulatory
EU Money Market Reform EU MMFR Regulation – The European Money Market Funds (MMF) reform increases requirements for all money market funds domiciled, managed or marketed in the European Union. Regulatory
European Banking Authority EBA An entity/organization – The European Banking Authority (EBA) is a regulatory body that strives to maintain financial stability throughout the European Union’s (EU) banking industry. It was established in 2010 by the European Parliament, replacing the Committee of European Banking Supervisors (CEBS). Regulatory
European Central Bank ECB An entity/organization – The European Central Bank is the central bank for the euro and administers monetary policy within the Eurozone, which comprises 19 member states of the European Union and is one of the largest monetary areas in the world. Established by the Treaty of Amsterdam, the bank’s capital stock is owned by all 28 central banks of each EU member state. Regulatory
European Data Protection Board EDPB An entity/organization – The European Data Protection Board (EDPB) is an independent European body, which contributes to the consistent application of data protection rules throughout the European Union, and promotes cooperation between the EU’s data protection authorities. Regulatory
European Market Infrastructure Regulation – Variation Margin EMIR Regulation – One of the regulatory pillars of the European Market Infrastructure Regulation (“EMIR”) is the requirement for parties to collateralize the marked-to-market exposure in over-the-counter derivatives transactions (“OTC derivatives”) that are not cleared by a central clearing system. This requirement is commonly referred to as posting or exchanging variation margin (“VM”). Regulatory
European Securities and Markets Authority ESMA An entity/organization – The European Securities and Markets Authority is a European Union financial regulatory agency and European Supervisory Authority, that contributes to safeguarding the stability of the European Union’s financial system by enhancing the protection of investors and promoting stable and orderly financial markets. Regulatory
European Union EU An entity/organization – The European Union (EU) is a political and economic union of 27 member states that are located primarily in Europe. The EU has developed an internal single market through a standardised system of laws that apply in all member states in those matters, and only those matters, where members have agreed to act as one. EU policies aim to ensure the free movement of people, goods, services and capital within the internal market, enact legislation in justice and home affairs and maintain common policies on trade, agriculture, fisheries and regional development Regulatory
Event Interpretation Grid EIG Event interpretation Grid, a Global Market Practice document maintained by SMPG to highlight the differences of DPRP data outside of the global market practice. All
Ex Date Not applicable A date usually declared by the primary exchange (or deemed in many cases) in regards to a security and applies to the handling of a declared distribution.   It represents from a trading standpoint, the day (Trade Date) on which all shares bought and sold no longer trade (attached) with the right to be paid the most recently declared dividend.  Ex Date rules override Record Date accounting. Corporate Actions
Exchange Traded Derivative ETD Derivatives traded/listed on a formal exchange.  Includes futures and listed options Derivatives
Extension Not applicable Supplementary data within an ISO 20022 message. All
Fannie Mae Not applicable An entity/organization All
Federal Data Protection and Information Commissioner (Switzerland) FDPIC An entity/organization – The Federal Data Protection and Information Commissioner (FDPIC) is responsible to advise, educate and ensure the protection of personal data in Switzerland. It is responsible for the supervision of federal authorities and private bodies with respect to data protection and freedom of information legislation. Regulatory
Federal Deposit Insurance Corporation (US) FDIC An entity/organization – The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by the Congress to maintain stability and public confidence in the nation’s financial system. The FDIC insures deposits; examines and supervises financial institutions for safety, soundness, and consumer protection; makes large and complex financial institutions resolvable; and manages receiverships. Regulatory
Federal Reserve Bank FED An entity/organization All
Federal Reserve System (US) FRB An entity/organization -The Federal Reserve System (also known as the Federal Reserve or simply the Fed) is the central banking system of the United States of America. Regulatory
Federal Trade Commission (US) FTC An entity/organization – The Federal Trade Commission is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act. Its principal mission is the promotion of consumer protection and the enforcement of civil U.S. antitrust law through the elimination and prevention of anticompetitive business practices, such as coercive monopoly. Regulatory
Financial Action Taskforce (G7 Countries) FATF An entity/organization – The Financial Action Task Force, also known by its French name, Groupe d’action financière, is an intergovernmental organization founded in 1989 on the initiative of the G7 to develop policies to combat money laundering. In 2001, its mandate was expanded to include terrorism financing. Regulatory
Financial Conduct Authority (UK) FCA An entity/organization – The Financial Conduct Authority is a financial regulatory body in the United Kingdom, but operates independently of the UK Government, and is financed by charging fees to members of the financial services industry. The FCA regulates financial firms providing services to consumers and maintains the integrity of the financial markets in the United Kingdom. Regulatory
Financial Crimes Enforcement Network (US) FinCEN An entity/organization – The Financial Crimes Enforcement Network (FinCEN) is a bureau of the United States Department of the Treasury that collects and analyzes information about financial transactions in order to combat domestic and international money laundering, terrorist financing, and other financial crimes. Regulatory
Financial Industry Regulatory Authority (US) FINRA An entity/organization – The Financial Industry Regulatory Authority (FINRA) is an independent, nongovernmental organization that writes and enforces the rules governing registered brokers and broker-dealer firms in the United States. Its stated mission is “to safeguard the investing public against fraud and bad practices.” It is considered a self-regulatory organization. Regulatory
Financial Instrument Global Identifier FIGI A twelve character identification code Reference Data
Financial Products Markup Language FPML Open source standard for financial transmissions Settlements
Freddie Mac Not applicable An entity/organization All
Frozen Letter Not applicable “Frozen Letters” are used to facilitate the movement of positions in issues that are chilled or globally locked at DTC. Both parties in the movement must complete the letter. Corporate Actions
Futures Commission Merchant FCM An entity/organization – A futures commission merchant (FCM) plays an essential role in enabling customers to participate in the futures markets. An FCM is an individual or organization involved in the solicitation or acceptance of buy or sell orders for futures or options on futures in exchange for payment of money (commission) or other assets from customers. An FCM also has the responsibility of collecting margin from customers. The FCM is also responsible for ensuring asset delivery after the futures contract has expired. Regulatory
General Data Protection Regulation GDPR Regulation – The General Data Protection Regulation (EU) 2016/679 (GDPR) is a regulation in EU law on data protection and privacy in the European Union (EU) and the European Economic Area (EEA). It also addresses the transfer of personal data outside the EU and EEA areas. Regulatory
Global Legal Entity Identifier Foundation GLEIF An entity/organization – The Global Legal Entity Identifier Foundation is a supra-national not-for-profit organization tasked to support the implementation and use of the Legal Entity Identifier. Regulatory
Initial Margin IM Percent of a purchase price which must be used for a margin account Margin & Collateral
Interbank Offered Rate IBOR A benchmark interest rate Regulatory
InterContinental Exchange ICE US derivatives exchange.  Also operates a CCP. Derivatives
Interest Rate Swap IRS OTC derivative trade type where a periodic fixed payment is made by one party and a floating payment is made by the other.  Used to manage interest rate risk. Derivatives
Interim Tracking Not applicable Period of time between Ex and Record Date utilizes for accounting and tracking activities for due bills for trading purposes. Corporate Actions
Internal Revenue Service (US) IRS An entity/organization – The Internal Revenue Service is the revenue service of the United States federal government. The IRS is responsible for collecting taxes and administering the Internal Revenue Code, the main body of federal statutory tax law of the United States. The duties of the IRS include providing tax assistance to taxpayers and pursuing and resolving instances of erroneous or fraudulent tax filings. The IRS has also overseen various benefits programs, and enforces portions of the Affordable Care Act. Regulatory
International Bank Account Number IBAN Used to identify an individual account involved within a transaction, standard rule for the IBAN to be of specific length Settlements
International Organisation of Securities Commissions IOSCO An entity/organization – The International Organization of Securities Commissions is an association of organizations that regulate the world’s securities and futures markets. Members are typically primary securities and/or futures regulators in a national jurisdiction or the main financial regulator from each country. Regulatory
International Organization for Standardization ISO An entity/organization All
International Securities Identification Number ISIN A twelve character identification code which is established by the National Numbering Agency within the respective market Reference Data
International Swaps and Derivatives Association ISDA An entity/organization – The International Swaps and Derivatives Association is a trade organization of participants in the market for over-the-counter derivatives. It has created a standardized contract to enter into derivatives transactions. In addition to legal and policy activities, ISDA manages FpML, an XML message standard for the OTC Derivatives industry. Regulatory
Investment Manager IM A person or organization that makes investments All
Irish Data Protection Commission IEDPC An entity/organization – The Data Protection Commission (DPC) is the national independent authority responsible for upholding the fundamental right of individuals in the EU to have their personal data protected. The DPC is the Irish supervisory authority for the General Data Protection Regulation (GDPR), and also has functions and powers related to other important regulatory frameworks including the Irish ePrivacy Regulations (2011) and the EU Directive known as the Law Enforcement Directive. Regulatory
Irish Department of Business, Enterprise and Innovation IEDoBEI An entity/organization – The Department of Business, Enterprise and Innovation is a department of the Government of Ireland. Regulatory
Irish Department of Finance IEDoF An entity/organization – The Department of Finance is a department of the Government of Ireland.  The department is responsible for the administration of the public finances of the Republic of Ireland and all powers, duties and functions connected with the same, including in particular, the collection and expenditure of the revenues of Ireland from whatever source arising. Regulatory
Irish Department of Justice and Equality IEDoJE An entity/organization – The Department of Justice and Equality is a department of the Government of Ireland. The department’s mission is to maintain and enhance community security and to promote a fairer society in Ireland. Regulatory
ISO 15022 ISO 15022 An ISO standard for electronic data interchange between financial institutions. All
ISO 20022 ISO 20022 An ISO standard for electronic data interchange between financial institutions. All
Japan Financial Services Agency JFSA An entity/organization – The Financial Services Agency is a Japanese government agency and an integrated financial regulator responsible for overseeing banking, securities and exchange, and insurance sectors in order to ensure the stability of the financial system of Japan. The agency operates with a Commissioner and reports to the Minister of State for Financial Services. It oversees the Securities and Exchange Surveillance Commission and the Certified Public Accountants and Auditing Oversight Board. Regulatory
Legal Entity Identifier LEI Unique global Identifierfor entities Regulatory
London Clearing House LCH UK based exchange.  Also operates a CCP. Derivatives
London Interbank Offered Rate LIBOR A benchmark interest rate Regulatory
Lottery Not applicable A random process to determine which holder is subject to a portion of the outstanding debt security to be called. Corporate Actions
Luxembourg Banks and Bankers Association ABBL An entity/organization – Established in 1939, the Luxembourg Bankers Association (ABBL) is the oldest and largest professional association in the financial sector Regulatory
Market Practice MP Documentation of recommended universal standard All
Markets in Financial Instruments Directive MiFID Regulation – The Markets in Financial Instruments Directive (MiFID) is a European regulation that increases the transparency across the European Union’s financial markets and standardizes the regulatory disclosures required for firms operating in the European Union. Regulatory
Mortgage-Backed Securities MBS Mortgage-Backed Securities All
Non-Deliverable Forwards NDFs A cash settled forward contract Settlements
Non-Discretionary Lending Not applicable Non Custody Lending.  Custodian and Lending Agent are the two main transaction parties.  Communication links need to be agreed upon for holdings, trades, settlements, cash movements, and corporate action instructions. All
Office of Foreign Assets Control (US) OFAC An entity/organization – The Office of Foreign Assets Control is a financial intelligence and enforcement agency of the U.S. Treasury Department. It administers and enforces economic and trade sanctions in support of U.S. national security and foreign policy objectives. Under Presidential national emergency powers, OFAC carries out its activities against foreign states as well as a variety of other organizations and individuals, like terrorist groups, deemed to be a threat to U.S. national security. Regulatory
Office of the Comptroller of the Currency (US) OCC An entity/organization – The Office of the Comptroller of the Currency is an independent bureau within the United States Department of the Treasury that was established by the National Currency Act of 1863 and serves to charter, regulate, and supervise all national banks and thrift institutions and the federally licensed branches and agencies of foreign banks in the United States. Regulatory
Omnibus Not applicable An account with a service provider which has multiple sub accounts rolled into it. E.g. a custodian who is a participant at DTC will have multiple sub accounts on its system that roll up into a single participant account. All
Opt Outs Not applicable Dividends declared by an issuer where the issuer will reinvest the dividends by default, unless the holder opts out and takes the cash election. Corporate Actions
Organisation for Economic Co-operation and Development (Intergovernmental) OECD An entity/organization – The Organisation for Economic Co-operation and Development is an intergovernmental economic organisation with 37 member countries, founded in 1961 to stimulate economic progress and world trade. It is a forum of countries describing themselves as committed to democracy and the market economy, providing a platform to compare policy experiences, seek answers to common problems, identify good practices and coordinate domestic and international policies of its members. Regulatory
Over the Counter OTC An off-exchange transaction done between two parties Settlements
Over-Subscription Not applicable A feature of an offer where holders who fulfill their full entitlement in the basic subscription can subscribe for additional shares not taken up by other entitled subscribers.  Over-subscriptions are usually prorated based the number of unsubscribed shares and holders’ initial subscription amounts. Corporate Actions
Packaged Retail and Insurance-based Investment Products PRIIPS The term packaged retail investment and insurance-based products (PRIIPs) refers to a category of financial assets that are regularly provided to consumers in the European Union (EU) through banks or other financial institutions as an alternative to savings accounts. For regulation’s sake, the category is intentionally broad and is intended to cover all packaged, publicly marketed financial products that have exposure to underlying assets—stocks, bonds, etc.—that provide a return over time, and have an element of risk. This essentially covers all packaged retail investment products marketed in the European Union, including insurance policies. Regulatory
Personal Information Protection Commission (Japan) PPC An entity/organization – The Personal Information Protection Commission is a Japanese government commission charged with the protection of personal information. Regulatory
Portfolio Managers PM A person or organization that makes investments All
Price (Unit) Not applicable The rate at which a security was purchased Settlements
Pro rata (Proration) Not applicable A proportional allocation based on share holdings. Corporate Actions
Protect Not applicable The purpose of the cover/protect or guaranteed delivery is to allow an investor to submit an election to a voluntary corporate action for shares that they own but are not yet in their possession prior to the expiration of the offer but will be prior to the cover protect expiration time.  This applies to purchase made prior to expiration but due to settle after expiration, or loan return situation where the borrower will return the shares prior to the protect period expiration. Corporate Actions
Qualified Institutional Buyer QIB QIB or Qualified Institutional Buyer is an investor if they are thought to require less regulatory protection than unsophisticated investors. All
Receive against payment RvP An instruction to receive specified securities from a specified party and to pay a specified amount of money Settlements
Receive Free RF An instruction to receive specified securities from a specified party without delivery of payment Settlements
Record Date Not applicable A date declared by the issuer where shareholders of record based on settled positions will be entitled to receive the dividend or distribution declared by the issuer.  Please see Ex Date for exceptions. Corporate Actions
Recycling Not applicable A DTC convention.  Recycling will occur when an instruction is submitted and the instructed quantity is greater that the eligible balance. • If the eligible balance is increased on the day of the instruction and is equal to or greater that the instruction quantity the instruction is accepted • If the eligible balance does not increase on the day of the instruction, the instruction will drop. Corporate Actions
REGS REGS An SEC regulation allowing publicly-traded companies not to register or Blue sky stocks or bonds sold in the United States to foreign investors. Created in 1990, this regulation was intended to encourage foreign investors to purchase American stocks in order to increase the liquidity of American markets. Regulatory
Regulation (EU) Not applicable A regulation is a binding legislative act. It must be applied in its entirety across the EU.  Regulations are law and the national governments do not have to take any actions themselves to implement EU regulations. The regulations must just be followed by every citizen like a law. Regulatory
Regulation Best Interest Reg BI Regulation Best Interest (BI) is a 2019 Securities and Exchange Commission (SEC) rule that requires broker-dealers to only recommend financial products to their customers that are in their customers best interests, and to clearly identify any potential conflicts of interest and financial incentives the broker-dealer may have with those products. Regulatory
Repurchase Agreement Repo A short term secured loan where parties agree to repurchase assets at a later date Settlements
Risk Free Rate RFR Interest rate available to entities that do not have counterparty credit risk. Derivatives
Safekeeping Account Not applicable An account held at an asset provider, e.g. custodian. All
Schema Not applicable The term “schema” refers to the organization of data structure used within ISO 20022 as a blueprint of how the database is constructed. All
Section 302 302 US tax law pertaining to the taxation on a distribution or payment made where non residents (non US holders) will be subject to taxation at time of payment. Regulatory
Securities and Futures Commission (HK) SFC An entity/organization – The Securities and Futures Commission (SFC) of Hong Kong is the independent statutory body charged with regulating the securities and futures markets in Hong Kong. The SFC is responsible for fostering an orderly securities and futures markets, to protect investors and to help promote Hong Kong as an international financial centre and a key financial market in China. Regulatory
Securities Financing Transactions Regulation SFTR Regulation – The Securities Financing Transactions Regulation (SFTR) is a body of European legislation for the regulation of securities lending and repo. The regulation includes requirements to obtain consent from a counterparty before re-using its collateral, disclosure and reporting to trade repositories. The objective of the legislation is to reduce systemic risk in securities lending and get more visibility over collateral re-use. Regulatory
Securities Lending Not applicable The loaning of a security to another party.  The lender loses ownership to the security (ownership is transferred including voting rights) but borrower must make available to the lender all entitlements that would be owed on the shares while they are being loaned.  Therefore, dividends, interest etc. must be paid back to the lender by the borrower. Any rights will be passed back to the lender.  The lender may also participate in any voluntary events by holding the borrower liable to the terms of the offer.  Lender can also request the shares be returned anytime. All
Securities Market Practice Group SMPG Focused on current securities practice All
Senior Managers and Certification Regime SMCR Regulation – The Senior Managers and Certification Regime (SM&CR) apply to the United Kingdom banking sector and dual-regulated insurers. SM&CR was put in place to reduce financial service consumer harm and strengthen market integrity by making individuals accountable for their conduct and competence. The FCA describes SM&CR as an opportunity for financial institutes to establish healthy cultures and effective governance by encouraging individual accountability and setting standards for personal conduct. Regulatory
Shareholder Rights Directive II SRD II Regulation – The Shareholder Rights Directive II (SRD II) is a European Union (EU) directive, which sets out to strengthen the position of shareholders and to ensure that decisions are made for the long-term stability of a company. It amends the original SRD, which came into effect in 2007, with the objective of improving corporate governance in companies which have their registered office in an EU Member State and whose securities are traded on the EU’s regulated markets. Regulatory
Society for Worldwide Interbank Financial Telecommunication SWIFT An entity/organization All
Standard Initial Margin Model SIMM Methodology to calculate initial margin on non-cleared derivatives Margin & Collateral
Standard Release Not applicable A date which the yearly maintenance release takes into effect. All
Standing Instructions Not applicable Instructions provided by a client for action they always want to take at the account servicer as per SLA. All
Stock Exchange Daily Official List SEDOL A seven character identification code Reference Data
Subscription Not applicable The participation in an offering of securities based on an account’s entitlement as of a specific date.  Each entitled holder can subscribe for the additional shares in the offered security either in full or in part and is required to pay a subscription fee based at the time of instruction based on the number of shares to be received and the terms of the subscription offer. Rights offers are an example of a subscription offer. Corporate Actions
SWAP Execution Facility SEF An entity/organization All
Swing Date Not applicable Date DTC expects to move positions from old shares to new shares. Corporate Actions
Swiss Financial Market Supervisory Authority FINMA An entity/organization – The Swiss Financial Market Supervisory Authority (FINMA) is the Swiss government body responsible for financial regulation. This includes the supervision of banks, insurance companies, stock exchanges and securities dealers, as well as other financial intermediaries in Switzerland. Regulatory
Target2-Securities T2S A new European securities settlement engine which aims to offer centralised delivery-versus-payment settlement in central bank funds across all European securities markets. It is important to take note of the fact that T2S is not a central securities depository, but a platform which will enable CSDs to increase their competitiveness. All
Third Party Lending Not applicable A lender with one institution loans shares for an account that is custodied at another institution to another party who is not custodied with the lender’s custodian. All
To be Announced TBA Mortgage Backed Securities “To Be Announced” trades are placeholders for the purchase and sale of mortgage pools Settlements
Total Return Swap TRS OTC derivative trade type where a periodic payment is made by one party and the total return (gains/losses and dividends/coupons) of a reference asset is paid by the other party. Derivatives
Tranche Not applicable Tranches are pieces of a pooled collection of securities, usually debt instruments, that are split up by risk or other characteristics in order to be marketable to different investors. Each portion, or tranche, is one of several related securities offered at the same time but with varying risks, rewards, rates, and maturities to appeal to a diverse range of investors. Corporate Actions
Treasury Market Practice Group TMPG An entity/organization All
U.S. Commodity Futures Trading Commission CFTC An entity/organization – The Commodity Futures Trading Commission is an independent agency of the US government created in 1974, that regulates the U.S. derivatives markets, which includes futures, swaps, and certain kinds of options. Regulatory
U.S. Department of Homeland Security DHS An entity/organization – The Department of Homeland Security works to improve the security of the United States. The Department’s work includes customs, border, and immigration enforcement, emergency response to natural and manmade disasters, antiterrorism work, and cybersecurity. Regulatory
U.S. Department of Justice DOJ An entity/organization – The United States Department of Justice (DOJ), also known as the Justice Department, is a federal executive department of the United States government responsible for the enforcement of the law and administration of justice in the United States of America, and is equivalent to the justice or interior ministries of other countries. Regulatory
U.S. Department of Labor DOL An entity/organization – The United States Department of Labor (DOL) is a cabinet-level department of the U.S. federal government responsible for occupational safety, wage and hour standards, unemployment insurance benefits, reemployment services, and some economic statistics; many U.S. states also have such departments. The department is headed by the U.S. Secretary of Labor. Regulatory
U.S. Securities and Exchange Commission SEC An entity/organization – The U.S. Securities and Exchange Commission is an independent agency of the United States federal government. The SEC holds primary responsibility for enforcing the federal securities laws, proposing securities rules, and regulating the securities industry, which is the nation’s stock and options exchanges, and other activities and organizations, including the electronic securities markets in the United States. Regulatory
Undertakings for Collective Investment in Transferable Securities UCITS Regulation – The Undertakings for Collective Investment in Transferable Securities Directive is a consolidated EU Directive, that allows collective investment schemes to operate freely throughout the EU on the basis of a single authorisation from one member state. EU member states are entitled to have additional regulatory requirements for the benefit of investors. Regulatory
Uniform Mortgage-Backed Security UMBS Result of the Single Security initiative between Fannie Mae and Freddie Mac All
Unique Swap Identifier USI A transaction identifier code which is unique for each individual transaction. The alphanumeric code is a fixed lenth, and includes a prefix portion within the reference. Settlements
Unique Transaction Identifier UTI A transaction identifier code which is unique for each individual transaction. The alphanumeric code is a fixed lenth, and includes a prefix portion within the reference. Settlements
Variation Margin VM Variable margin payment to respective clearing parties based on prices movements, also known as mark to market margin. Margin & Collateral