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Settlement Lag

In relation to a transfer system, it refers to the span of time (lag) between the acceptance of the transfer...

Physical Delivery

The delivery of an asset such as a commodity or instrument, in physical form. This term is used specifically in...

Settlement Asset

An asset or a claim on an asset that is accepted by a beneficiary (in a financial transaction) as a...

Pledge

The posting of assets for the purpose of securing the performance of or delivery on, an obligation by one party…

NCC

It stands for net credit cap; an upper or maximum limit (cap) that is placed on the credit exposure (credit...

Net Credit Cap

An upper or maximum limit (cap) that is placed on the credit exposure (credit risk) which a participant (e.g., a...

Risk-Free Interest Rate

The interest rate that would exist on a riskless asset/ investment/ security, given that expected inflation is zero. Such a...

RFR

It stands for risk-free rate; the interest rate that would exist on a riskless asset/ investment/ security, given that expected...

Risk-Free Rate

The interest rate that would exist on a riskless asset/ investment/ security, given that expected inflation is zero. Such a...

Margin

Highly liquid collateral that is required (to be posted) in order to cover adverse market price movements. This reflects the…