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Payments and markets glossary

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D

daily processing
The complete cycle of processing tasks which need to be completed in a typical business day, from start-of-day procedures to end-of-day procedures. This sometimes includes the backing-up of data.
daylight credit
See
intraday credit (daylight credit)
debit card (card with a debit function)
A card enabling its holders to make purchases and/or withdraw cash and have these transactions directly and immediately charged to their accounts, whether these are held with the card issuer or not. See also
card (payment card)
delayed debit card
default
An event stipulated in an agreement as constituting a default. Generally, such events relate to a failure to complete a transfer of funds or securities in accordance with the terms and rules of the system in question. A failure to pay or deliver on the due date, a breach of agreement and the opening of insolvency proceedings all constitute such events. See also
failed transaction
defaulter pays
A loss-sharing arrangement whereby each participant is required to collateralise any exposures it creates for other participants. As a result, losses resulting from a party’s default are borne by the defaulting party. Antonym:
survivors pay
deferred net settlement system
A system which settles on a net basis at the end of a predefined settlement cycle (typically at the end of – but sometimes during – the business day). See also
net settlement system
delayed debit card (charge card)
A card enabling its holders to make purchases and/or withdraw cash and have these transactions charged to an account held with the card issuer, up to an authorised limit. The balance of this account is then settled in full at the end of a predefined period. See also
card (payment card)
delivery
The transfer of financial instruments or commodities by means of book entry or physical exchange.
delivery versus delivery (DvD)
A securities settlement mechanism which links two securities transfers in such a way as to ensure that the delivery of one security occurs if – and only if – the other security in the other transfer is delivered.
delivery versus payment (DvP)
A securities settlement mechanism which links a securities transfer and a funds transfer in such a way as to ensure that delivery occurs if – and only if – the corresponding payment occurs.
dematerialisation
The elimination of physical certificates or documents of title indicating ownership of financial assets, such that the financial assets exist only as accounting records.
deposit facility
A standing facility of the Eurosystem which counterparties may use to make overnight deposits at a national central bank. Such deposits are remunerated at a pre-specified interest rate. See also
standing facility
depository
An agent with the primary role of recording (direct or indirect) holdings of securities. A depository may also act as a registrar (cf. custodian).
derivative
A financial contract whose value depends on the value of one or more underlying reference assets, rates or indices, on a measure of economic value or on factual events.
designated system
A system governed by the law of an EEA Member State and designated to the European Commission by the competent national authorities in accordance with Directive 98/26/EC of the European Parliament and of the Council of 19 May 1998 on settlement finality in payment and securities settlement systems.
digital signature
See
electronic signature (digital signature)
direct clearing member
A member of a clearing house that clears on its own behalf and on behalf of its customers. See also
clearing member
general clearing member
non-clearing member
direct debit
A payment instrument for the debiting of a payer’s payment account whereby a payment transaction is initiated by the payee on the basis of authorisation given by the payer.
direct holding system
An arrangement for registering ownership of securities (or similar interests) whereby each and every final investor in the security is registered with a single entity (e.g. the issuer itself, a central securities depository (CSD) or a registry). In some countries, the use of direct holding systems is required by law. Antonym:
indirect holding system
direct link
An account opened by a central securities depository (CSD), referred to as the “investor CSD”, in the books of another CSD, referred to as the “issuer CSD”, in order to facilitate the transfer of securities from participants in the issuer CSD to participants in the investor CSD. See also
indirect link
investor CSD
operated direct link
relayed link
direct participant
A participant in a transfer system that can perform all activities allowed in the system without using an intermediary (including, in particular, the direct inputting of orders in the system and the performance of settlement operations). See also
indirect participant
DLT
distributed ledger technology
domestic settlement
Settlement which takes place in the country (or currency area) in which both parties to the transaction are located. Antonym:
cross-border settlement
double-entry bookkeeping
An accounting principle whereby for each credit/debit entry made in one account, there is a corresponding entry in another account.
DvD
See
delivery versus delivery (DvD)
DvP
See
delivery versus payment (DvP)