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Payments and markets glossary

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M

m-payment
See
mobile payment (m-payment)
mandate for direct debits
The authorisation given by a payer to a payee (and/or the institution with which the payer’s account is held) consenting to the debiting of the payer’s account. See also
direct debit
margin
Highly liquid collateral required in order to cover adverse market price movements. The initial margin is calculated on the basis of a formula set by the counterparties to a trade or by a central counterparty (CCP). A market participant is called upon to provide additional collateral if the collateral that has been deposited is no longer sufficient (with this “margin call” indicating a shortfall in the margin coverage).
marginal lending facility
A standing facility of the Eurosystem which counterparties may use to receive overnight credit from a national central bank at a pre-specified interest rate against eligible assets. See also
standing facility
market infrastructure
Systems used for the trading, clearing and settlement of payments, securities or derivatives.
market risk (price risk)
The risk of losses (in both on and off-balance sheet positions) arising from movements in market prices. See also
replacement cost risk
matching
The process used for comparing the trade or settlement details provided by parties in order to ensure that they agree on the terms of the transaction.
means of payment
Assets or claims on assets that are accepted by a payee as discharging a payment obligation on the part of a payer vis-à-vis the payee. See also
payment instrument
member
A participant in a system which also owns a stake in that system.
merchant service charge (MSC)
A fee paid by the acceptor/merchant to the acquirer.
minimum standards of the Lamfalussy report (Lamfalussy standards)
The six minimum standards for the design and operation of cross-border and multi-currency netting schemes or systems. For details, see the “Report of the Committee on Interbank Netting Schemes of the Central Banks of the Group of Ten Countries” (the “Lamfalussy report”), BIS, November 1990. See also
Core Principles for Systemically Important Payment Systems
mobile payment (m-payment)
A payment where a mobile device is used at least for the initiation of the payment order and potentially also for the transfer of funds.
money order
An instrument used to transfer money remotely, often used where the payer and/or the payee do not have a current account with a financial institution.
money remitter
A payment service provider that accepts funds from a payer for the purpose of making them available to a payee, without necessarily maintaining an account relationship with the payer or payee.
MSC
See
merchant service charge (MSC)
multi-purpose prepaid card (electronic purse)
A prepaid card which can be used at the outlets of several service providers for a wide range of purposes. See also
prepaid card
multilateral net settlement system
A settlement system in which each settling participant settles its own multilateral net settlement position (typically by means of a single payment or receipt). See also
multilateral netting
net settlement system
multilateral netting
An arrangement among three or more parties for the netting of obligations and the settling of multilateral net settlement positions. See also
bilateral netting
netting