An instrument whose value is established or determined directly by the markets. Examples include market-pegged deposits and loans, as well as readily transferable (highly liquid) securities. This type of instrument is directly impacted by changes in market rates and conditions. By definition, underlying cash is a monetary asset, and cash instruments are financial instruments.

For transferable securities, both borrower and lender have to agree on the transfer process. Other examples of underlying cash items include checks, drafts and other instruments or instructions for payment of money, and marketable securities such as investment-grade bonds.