21.07.2020

Depositories Dictionary (Jargon)

This Jargon Dictionary of Depositories is a section of a financial regulatory dictionary. And it has a specific regulation. The language of the financial regulatory field is complex and an entry barrier to understanding its regulation. This work is informative and lacking in scientific character. It is only an approach that facilitates access to a complex subject. This same work and this particular section are available in Spanish.

Por Sanz González , María

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Concept	Definition
SHARES	Shares in companies and other securities equivalent to shares in companies, partnerships or other entities, and depositary receipts in respect of shares
SETTLEMENT AGENT	Shall mean an entity providing to institutions and/or a central counterparty participating in systems, settlement accounts through which transfer orders within such systems are settled and, as the case may be, extending credit to those institutions and/or central counterparties for settlement purposes
SENIOR MANAGEMENT	Those natural persons who exercise executive functions within a CSD and who are responsible and accountable to the management body for the day-to-day management of that CSD
RELEVANT AUTHORITY	Any authority referred to in Article 12 of Regulation 909/214
TRADING VENUE	A regulated market, an MTF or an OTF;
CONTROL	The relationship between two undertakings as described in Article 22 of Directive 2013/34/EU
SECURITIES ACCOUNT	An account on which securities may be credited or debited
THIRD-COUNTRY CSD	Any legal entity established in a third country that provides a similar service to the core service referred to in point (3) of Section A of the Annex and performs at least one other core service listed in Section A of the Annex of Regulation (EU) No 909/2014
RECEIVING CSD	The CSD which receives the request of another CSD to have access to its services through a CSD link
REQUESTING CSD	The CSD which requests access to the services of another CSD through a CSD link
CENTRAL SECURITIES DEPOSITORY OR CSD	A legal person that operates a securities settlement system referred to in point (3) of Section A of the Annex and provides at least one other core service listed in Section A of the Annex of Regulation (EU) No 909/2014
EMISSION ALLOWANCE	Emission allowance as described in point (11) of Section C of Annex I to Directive 2014/65/EU, excluding derivatives in emission allowances
BUSINESS DAY	Shall cover both day and night-time settlements and shall encompass all events happening during the business cycle of a system;
CSD LINK	An arrangement between CSDs whereby one CSD becomes a participant in the securities settlement system of another CSD in order to facilitate the transfer of securities from the participants of the latter CSD to the participants of the former CSD or an arrangement whereby a CSD accesses another CSD indirectly via an intermediary. CSD links include standard links, customised links, indirect links, and interoperable links
STANDARD LINK	A CSD link whereby a CSD becomes a participant in the securities settlement system of another CSD under the same terms and conditions as applicable to any other participant in the securities settlement system operated by the latter
INDIRECT LINK	An arrangement between a CSD and a third party other than a CSD, that is a participant in the securities settlement system of another CSD. Such link is set up by a CSD in order to facilitate the transfer of securities to its participants from the participants of another CSD
INTEROPERABLE LINK	A CSD link whereby CSDs agree to establish mutual technical solutions for settlement in the securities settlement systems that they operate
CUSTOMISED LINK	A CSD link whereby a CSD that becomes a participant in the securities settlement system of another CSD is provided with additional specific services to the services normally provided by that CSD to participants in the securities settlement system
CCP	A legal person that interposes itself between the counterparties to the contracts traded on one or more financial markets, becoming the buyer to every seller and the seller to every buyer
DELIVERY VERSUS PAYMENT OR DVP	A securities settlement mechanism which links a transfer of securities with a transfer of cash in a way that the delivery of securities occurs if and only if the corresponding transfer of cash occurs and vice versa
HOST MEMBER STATE	The Member State, other than the home Member State, in which a CSD has a branch or provides CSD services
HOST MEMBER STATE	The Member State, other than the home Member State, in which a CSD has a branch or provides CSD services;
HOME MEMBER STATE	The Member State in which a CSD is established
SETTLEMENT FAIL	The non-occurrence of settlement, or partial settlement of a securities transaction on the intended settlement date, due to a lack of securities or cash and regardless of the underlying cause
INTENDED SETTLEMENT DATE	The date that is entered into the securities settlement system as the settlement date and on which the parties to a securities transaction agree that settlement is to take place
SUBSIDIARY	An undertaking controlled by a parent undertaking, including any subsidiary undertaking of an ultimate parent undertaking and Article 22 of Directive 2013/34/EU
DEMATERIALISED FORM	The fact that financial instruments exist only as book entry records
DEFAULT	In relation to a participant, a situation where insolvency proceedings, as defined in point (j) of Article 2 of Directive 98/26/EC, are opened against a participant
IMMOBILISATION	The act of concentrating the location of physical securities in a CSD in a way that enables subsequent transfers to be made by book entry
FINANCIAL INSTRUMENT	Any of the instruments listed in Section C of Annex I to Directive 2014/65/EU for which a request for admission to trading on a trading venue, has been made or which is traded on a trading venue or via a systematic internaliser
MONEY-MARKET INSTRUMENTS	Those classes of instruments which are normally dealt in on the money market, such as treasury bills, certificates of deposit and commercial papers and excluding instruments of payment;
SETTLEMENT INTERNALISER	Any institution, including one authorised in accordance with Directive 2013/36/EU or with Directive 2014/65/EU, which executes transfer orders on behalf of clients or on its own account other than through a securities settlement system
SETTLEMENT	The completion of a securities transaction where it is concluded with the aim of discharging the obligations of the parties to that transaction through the transfer of cash or securities, or both
SME GROWTH MARKET	A MTF that is registered as an SME growth market in accordance with Article 33 of MiFID II
REGULATED MARKET	A multilateral system operated and/or managed by a market operator, which brings together or facilitates the bringing together of multiple third-party buying and selling interests in financial instruments – in the system and in accordance with its non-discretionary rules – in a way that results in a contract, in respect of the financial instruments admitted to trading under its rules and/or systems, and which is authorised and functions regularly and in accordance with the provisions of Title III of MiFID II
TRANSFER ORDER	An instruction by a participant to transfer the title to, or interest in, a security or securities by of a book entry on a register, or otherwise
MANAGEMENT BODY	The body or bodies of a CSD, appointed in accordance with national law, which is empowered to set the CSD’s strategy, objectives and overall direction, and which oversees and monitors management decision-making and includes persons who effectively direct the business of the CSD. Where, according to national law, a management body comprises different bodies with specific functions, the requirements of Regulation 909/2014 shall apply only to members of the management body to whom the applicable national law assigns the respective responsibility
PARTICIPATION	Rights in the capital of other undertakings, whether or not represented by certificates, which, by creating a durable link with those undertakings, are intended to contribute to the activities of the undertaking which holds those rights. The holding of part of the capital of another undertaking is presumed to constitute a participating interest where it exceeds a percentage threshold fixed by the Member States which is lower than or equal to 20 %, or the ownership, direct or indirect, of 20 % or more of the voting rights or capital of an undertaking
UNITS IN COLLECTIVE INVESTMENT UNDERTAKINGS	Units in collective investment undertakings as referred to in point (3) of Section C of Annex I to Directive 2014/65/EU
PARTICIPANT	An institution, a central counterparty, a settlement agent or a clearing house. According to the rules of the system, the same participant may act as a central counterparty, a settlement agent or a clearing house or carry out part or all of these tasks. A Member State may decide that for the purposes of Directive 98/26/EC ian indirect participant may be considered a participant if it is warranted on the grounds of systemic risk and on condition that the indirect participant is known to the system, in a securities settlement system
SETTLEMENT PERIOD	The time period between the trade date and the intended settlement date
INTERNATIONAL OPEN COMMUNICATION PROCEDURES AND STANDARDS	Internationally accepted standards for communication procedures, such as standardised messaging formats and data representation, which are available on a fair, open and non-discriminatory basis to any interested party
MULTILATERAL TRADING FACILITY (MTF)	A multilateral system, operated by an investment firm or a market operator, which brings together multiple third-party buying and selling interests in financial instruments – in the system and in accordance with non-discretionary rules – in a way that results in a contract in accordance with Title II of MiFID II Directive;
SECURITIES SETTLEMENT SYSTEM	A system under the first, second and third indents of point (a) of Article 2 of Directive 98/26/EC that is not operated by a central counterparty whose activity consists of the execution of transfer orders
BRANCH	A place of business other than the head office which is a part of a CSD, which has no legal personality and which provides CSD services for which the CSD has been authorised
TRANSFERABLE SECURITIES	Those classes of securities which are negotiable on the capital market, with the exception of instruments of payment, such as: (a) shares in companies and other securities equivalent to shares in companies, partnerships or other entities, and depositary receipts in respect of shares; (b) bonds or other forms of securitised debt, including depositary receipts in respect of such securities; (c) any other securities giving the right to acquire or sell any such transferable securities or giving rise to a cash settlement determined by reference to transferable securities, currencies, interest rates or yields, commodities or other indices or measures;