DTCC Cross-Business Glossary

ABA

The American Bankers Association (ABA), founded in 1875, is the largest banking trade association in the United States. It represents banks of all sizes.

ABS

An Asset Backed Security (ABS) is a securitized instrument that has underlying assets (usually loans) that are used as collateral. These structured financial products are backed by assets such as student-loans, credit cards, and auto-loan receivables.

ACATS

The Automated Customer Account Transfer Service (ACATS) is a system that facilitates the transfer of assets in a customer account from one brokerage firm and/or bank to another.

ACH

The Automated Clearing House (ACH), network is an electronic funds-transfer system run by NACHA, formerly the National Automated Clearing House Association, since 1974. This payment system provides ACH transactions for use with payroll, direct deposit, tax refunds, consumer bills, tax payments, and many more payment services in the United States.

ADR

An American Depositary Receipt (ADR) is a negotiable U.S. certificate representing ownership of shares in a non-U.S. corporation. ADRs are quoted and traded in U.S. dollars in the U.S. securities market; the associated dividends are paid to investors in U.S. dollars as well. ADRs were specifically designed to facilitate the purchase, holding, and sale of non-U.S. securities by U.S. investors as well as providing a corporate finance vehicle for non-U.S. issuers.

AFRS

The Automated Financial Reporting System (AFRS) is a database tool providing flexible reporting and analysis of participants and applicants monthly autofocus financial statements.

AKAS

The ALERT Key Auto Select (AKAS), functionality enables rules-based enrichment of Central Trade Manager (CTM), trades with preferred standing settlement instructions (SSIs), sourced from the ALERT platform. AKAS uses trade information to derive country and security type for a transaction, and determines the default depository. Clients have the ability to override default choices and indicate settlement location preferences, enabling settlements for each security type and geography to be made into and out of a single preferred depository for each account.

AML

Anti-Money Laundering (AML) refers to any policies, procedures, legislation, and regulations intended to prevent criminals from disguising illegally obtained funds generated by criminal activity, such as drug trafficking or terrorist funding, that appears to have come from a legitimate source. AML laws require that financial institutions perform Customer Due Diligence (CDD) and Know Your Customer (KYC) activities, in conjunction with transaction monitoring, and report any potentially suspicious activity they detect to relevant regulators.

APR

The annual percentage rate (APR) refers to the annual rate of interest charged to borrowers and paid to investors. APR is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan or income earned on an investment. This includes any fees or additional costs associated with the transaction, but it does not take compounding into account.

APY

The annual percentage yield (APY) is the real rate of return earned on a savings deposit or investment taking into account the effect of compounding interest.

BAB

Build America Bonds (BAB), established as part of the American Recovery and Reinvestment Act of 2009, are two types of taxable government bonds with Federal subsidies for a portion of their borrowing costs.

BAU

Business as usual (BAU), is the normal execution of standard functional operations within an organization.

BEO

Book-Entry Only (BEO) is the accounting system that enables DTC to transfer ownership records for securities held in its nominee name of Cede & Co. electronically from the selling broker’s account to the buying broker’s accounting when the transaction is settled. With book-entry accounting, no physical securities change hands.

BIC

A Business Identifier Code (BIC) (formerly known as a Bank Identifier Code), is the International ISO standard ISO 9362:2014. This standard specifies the elements and structure of a universal identifier code for financial and non-financial institutions, for which such an international identifier is required to facilitate automated processing of information. The BIC is used for addressing messages, routing business transactions and identifying business parties. It is an 8 character code, consisting of the business party prefix (4 alphanumeric), the country code as defined in ISO 3166-1 (2 alphabetic), and the business party suffix (2 alphanumeric).

BRMG

A Broker Matching Group (BRMG) is a group of executing broker/dealers you define to simplify the matching process. They consist of broker organizations that are all linked. When an investment manager alleges a trade, matching can occur with any broker/dealer within the broker matching group.

CA

A Corporate Action (CA) is an event that may impact the value of a company’s securities and generally has a direct or indirect effect on its shareholders and bondholders. Among the range of possible corporate actions include dividend or interest payments, stock splits, tender offers, rights offerings, securities conversions, warrants, and corporate reorganizations.

CBRS

The Cost Basis Reporting Service (CBRS) is an automated system that gives financial firms the ability to transfer customer cost basis information from one firm to another on any asset transfer. It mitigates extra paper trails, extra charges, and operational risk, and extends its service to transfer agents, issuers, mutual funds, custodian banks, and broker/dealers.

CCP

A central counterparty (CCP) is an entity that interposes itself as the buyer to every seller and the seller to every buyer to guarantee that a trade will eventually settle even if the original buyer or seller defaults. The goal of a CCP is to make trade processing easier, cheaper and less risky for all parties. National Securities Clearing Corporation (NSCC) and Fixed Income Clearing Corporation (FICC) provide CCP services.

CD

A Certificate of Deposit (CD), is a short-term negotiable debt security issued by a bank with a maturity ranging from weeks to several years. Interest rates are determined by several factors, including but not limited to: the CDs terms, the type of CD, current benchmark interest rates and the financial institution offering the CD. CD also refers to non-negotiable bank savings deposits with specified maturities.

CDD

Customer Due Diligence (CDD) is a required component to meeting Know You Customer (KYC) program requirements; both CDD and KYC policies are cornerstones of an effective AML program. In practice, CDD is the process where pertinent information of a customer’s profile is collected, verified, and evaluated for potential money laundering or terrorist financing risks before being onboarded.

CDR

A Customer Delivery Request (CDR) is an instruction submitted by a buyer or seller to preclude pool instruct(s) from being operationally netted (i.e., offset by other non-CDRed pool instructs having the same trade terms). While a CDR precludes a pool instruct from operational netting, if the underlying pool number/CUSIP submitted on the pool instruct meets the selection criteria for inclusion in pool netting, the resulting obligation will settle versus FICC. CDRs may be submitted at the individual pool instruct level at the time of submission, or post-submission via messaging or via the WFE function. CDRs may also be submitted globally, at either the TBA CUSIP level or pool number level (meaning that all pool instructs active in the system corresponding to the TBA CUSIP or pool number will be placed in CDR status.)

CDS

CDS can refer to: (1) Canadian Depository for Securities (CDS) is Canada's national securities clearing, settlement and depository organization, working to continually improve Canadian capital market efficiency by providing cost-effective services to its clients - banks, brokers, trust companies and other financial industry members. CDS links electronically with NSCC/DTC in the US and has custodial links with Euroclear and Japan Securities Settlement & Custody, INC. (JSSC); (2) A Credit Default Swap (CDS) is a financial derivative product that allows a buyer/investor to swap or offset their credit risk with that of another investor. The seller of the CDS will compensate the buyer in the event of a debt default or other credit event. That is, the seller of the CDS insures the buyer against some reference asset from defaulting.

CEDE

Cede & Co. (CEDE) is the DTC nominee name to register securities. DTC holds them as record owner and the client is still the beneficial, actual owner of the securities.

CET1

Common Equity Tier 1 (CET1) is a component of Tier 1 capital that is mostly common stock held by a bank or other financial institution.

CFTC

The Commodity Futures Trading Commission (CFTC) a government agency that regulates the U.S. derivatives markets, which includes futures, swaps, and certain kinds of options.

CID

A Compared Pool ID (CID) includes a FICC-assigned unique ID for a pair of matched PIDs. Each matched pool instruct record will have a PID identifying the submitter's pool instruct and a CID identifying the set of matched submissions.

CIK

The Central Index Key (CIK), is used as a unique identifier for financial filings with the Security and Exchange Commission of the USA.

CINS

Committee On Uniform Security Identification Procedures (CUSIP) International Number (CINS), is a nine-character alphanumeric code, assigned by Standard and Poor's CUSIP bureau.

CME

The Chicago Mercantile Exchange (CME)Provides an offset to the Total Clearing Fund Requirement. CME acts as the clearing organization for certain futures contracts and options on futures contracts that are traded on the CME and the Chicago Board of Trade (CBOT). FICC established a Cross-Margining arrangement in order to cross-margin products whose price volatility is sufficiently closely correlated that long and short positions in such products offset one another to some degree for the purpose of determining margin requirements.

CMO

A Collateralized Mortgage Obligation (CMO), refers to a type of mortgage-backed security that contains a pool of mortgages bundled together and sold as an investment. Organized by maturity and level of risk, CMOs receive cash flows as borrowers repay the mortgages that act as collateral on these securities. In turn, CMOs distribute principal and interest payments to their investors based on predetermined rules and agreements.

CMP

A Compared Pending Pool Aid (CMP) is the status of pool instructs that have been matched to counterparty submissions but are pending pool add in the system because there is insufficient pool information on FICC's records (due to a factor not being on FICC's masterfiles, for example).

CMU

The Corporate, Municipal, and UIT (CMU) system provides all of its customers with RTTM - a single pipeline, a common processing platform, and a standardized message format for the U.S. fixed income markets.

CNS

The CNS system is the core netting, allotting, and fail-control engine of NSCC. Within CNS, each security is netted to one position per participant, with NSCC as its central counterparty (novation).

COB

Close of Business (COB), is an abbreviation used in business to emphasize the time by which something should be done.

COD

Certificate on Demand (COD) is a withdrawal option, participant request the certificate then DTC removes a certificate registered to its nominee Cede & Co. from its vault, endorses the certificate, stamps the participant’s name as power of attorney, and sends the certificate to the requesting participant.

COI

A Cash Obligation Item (COI) is Cash-only receivables/payables that have been assigned a due date and collected via Cash Settlement.

CP

Commercial Paper (CP), identifies a note that involves a negotiable, short-term, unsecured commitment issued by credit worthy institutions. An unsecured, short-term debt instrument issued by a corporation, specifically DTCC, which can be used as a liquidity resource.

CPI

The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them.

CSD

CSD can refer to: (1) A Central Securities Depository (CSD) is an organization that has custody of immobilized securities issued in certificate form and dematerialized securities issued in electronic rather than certificate form. A CSD provides a portfolio of services relating to those securities on behalf of its participants; (2) A Contractual Settlement Date (CSD) is the contractual date on which bonds are scheduled to settle. A trade has a contractual settlement date (the scheduled settlement date) and an actual settlement date (when securities move versus payment). If a trade fails to settle on its CSD, it will fail until the actual settlement date.

CTM

The Central Trade Manager (CTM), is a platform for the central matching of cross-border and domestic transactions. CTM automates the trade confirmation process across multiple asset classes, such as equities, fixed income and repurchase agreements (repos). The CTM solution provides seamless connectivity from trade execution to settlement, including direct connectivity via the Financial Information eXchange (FIX), from front office to middle office trade processing, as well as via the Society for Worldwide Interbank Financial Telecommunications (SWIFT), network to a full community of custodian banks for the purposes of settlement notification. When used in conjunction with ALERT, the user can automatically enrich trades with account and Standing Settlement Instructions (SSI), ensuring all account information is accurate.

CUSIP

Committee on Uniform Security Identification Procedures (CUSIP) commonly refers to a security or family of securities issued after 1970. Each security or family of securities is identified by a nine-digit unique number called a CUSIP number. Do not use “CUSIP” to mean “issue” or “security.”

DDR

GTR provides transaction reporting services for derivatives in the U.S. and Canada through the legal entity DTCC Data Repository (U.S.) LLC (DDR). DDR is registered as a Swap Data Repository (SDR) with the U.S. Commodity Futures Trading Commission (CFTC), a registered Security-Based Swap Data Repository (SBSDR) with the U.S. Securities and Exchange Commission (SEC), and is authorized by Canadian regulators to provide derivatives reporting services in all Canadian provinces and territories.

DDRIE

DTCC Data Repository (Ireland) PLC (DDRIE) is DTCC’s European Securities and Markets Authority (ESMA) registered TR to support the EU27 countries. Dublin-based DDRIE enables firms to comply with the rules for regulatory reporting as set out in the European Market Infrastructure Regulation (EMIR), the Securities Financing Transactions Regulation (SFTR) and Switzerland’s FingraG.

DDRJ

GTR delivers derivatives trade reporting services in Japan through DTCC Data Repository (Japan) K.K. (DDRJ), the first trade repository to be licensed and operational in the Japanese market. Japan’s Financial Services Agency (JFSA) mandates the reporting of OTC derivatives transactions directly to the Agency or to a third-party trade repository such as DDRJ.

DDRL

DTCC Derivatives Repository Plc (DDRL) is DTCC’s registered UK TR, operating under the supervision of the UK’s Financial Conduct Authority (FCA). London-based DDRL enables firms to comply with the rules for regulatory reporting as set out in the European Market Infrastructure Regulation (EMIR) and the Securities Financing Transactions Regulation (SFTR).

DDRS

In Singapore, DTCC provides trade reporting services via DTCC Data Repository (Singapore) Pte. Ltd. (DDRS), the only trade repository currently approved by the Monetary Authority of Singapore (MAS).TCC provides trade reporting services in Australia via its legal entity DTCC Data Repository (Singapore) Pte. Ltd. (DDRS).

DK

Don't know / Do Not Know (DK), is an expression for an out trade that is used when there is a discrepancy in the details of the trade. Also known as a "DK'd trade," the expression refers to a situation where at least one of the parties involved claims to lack knowledge of some aspect of the trade or "does not know" the trade.

DMP

DMP (Direct Market Player), also known as Broker Dealers, is when a security firm provides the link between investors and the investments they are seeking.

DNA

The MBSD Do Not Allocate (DNA) service allows Members to execute a “pair-off” when they have two or more offsetting SBON and/or TFTD/TBA positions within the same TBA CUSIP and CSD. This process is available for trades settling on SIFMA CSD only and may be submitted on 48-hour day and up until 4:30 PM on 24-hour day.

DO

A Deliver Order (DO) refers to the instruction of a Participant to DTC to affect a book entry transfer of a security from its account to the account of another Participant, either free of value or versus payment.

DOI

The Date of Insolvency (DOI) is the date on which an individual or company declares they are insolvent.

DRIP

The Dividend Reinvestment Plan (DRIP), is a program that allows investors to reinvest their cash dividends into additional shares or fractional shares of the underlying stock on the dividend payment date. Although the term can apply to any automatic reinvestment arrangement set up through a brokerage or investment company, it generally refers to a formal program offered by a publicly traded corporation to existing shareholders.

DRS

The Direct Registration System (DRS) is a DTC system that affords registered owners of securities the option of holding directly on the books and records of the issuer by receiving records of its interest in the securities in electronic statement form, without holding security certificates to represent those interests.

DTCC

The Depository Trust and Clearing Corporation (DTCC). Businesses, subsidiaries, and joint ventures include: DTCC Derivatives Repository PLC (Europe), DTCC Data Repository (U.S.) LLC, DTCC Data Repository (Japan) KK, DTCC Data Repository (Singapore) Pte Ltd, DTCC Deriv/SERV LLC, DTCC Solutions LLC, FICC, NSCC, and DTCC Institutional Trade Processing Business Subsidiaries.

DUNS

The Data Universal Numbering System (DUNS), is a proprietary system developed and regulated by Dun & Bradstreet. The DUNS Number is a unique, 9 digit, numeric identifier, issued by Dun & Bradstreet, which identifies a company's Dun & Bradstreet business credit file.

DVP

A Delivery Versus Payment (DVP) is the book-entry transfer of securities at DTC from one Participant to another against a funds payment obligation of the receiving Participant.

DVP CALM

Delivery Versus Payment Cross Account Liquidity Methodology (DVP CALM) is offsets generated in the GSD DVP service by satisfying a delivery obligation of a participant with a purchase obligation in the same security in another participant account within the same affiliated family.

DVP Post CALM

Delivery Versus Payment Post Cross Account Liquidity Methodology (DVP Post CALM) Liquidity Needs is the net liquidity needed after applying DVP CALM Offsets to the DVP Raw Liquidity Needs.

ECR

Excess Capital Ratio (ECR) is the ratio of Applicable Clearing Fund / ENC.

ENC

Excess Net Capital (ENC) is the idea that every broker or dealer must at all times have and maintain net capital no less than the greater of the highest minimum requirement applicable to its ratio requirement. Capital in excess of this requirement is the excess net capital (ENC) for the broker or dealer. It is reported by broker/ dealers in monthly Focus report and also to FINRA every month. DTCC refers to Excess Net Capital as Excess Net Capital, Net Assets or equity capital as applicable to a Clearing Member based on its type of regulations, and is the basis of the excess capital premium charge.

EOD

End of Day (EOD), is often used to designate the time by which something must be completed. EOD traditionally is around 5:00 p.m., the end of the standard workday, but can vary depending on the time zone that the person or company is located in. Most often used in the abbreviated form when written, and in the longer form when spoken.

EPIM

The European Pre-Issuance Messaging service (EPIM) is an automated ISIN and common code request and allocation system that automates and improves the process of issuing designated European Money Market Instruments, such as Euro Commercial Paper (ECP), Certificates of Deposit (ECDs) and Medium-Term Notes (EMTNs). As a central messaging hub, EPIM links the various parties involved in numbering and issuing these securities, including the dealers, the Issuing and Paying Agents’ (IPAs) banks, and the relevant numbering agencies — Clearstream Banking and Euroclear Bank — that also act as primary place of deposit for the issued securities. EPIM is a joint service offering of The Depository Trust & Clearing Corporation (DTCC), Clearstream Banking, and Euroclear Bank.

EPN

Electronic Pool Notification (EPN) is real-time system for submitting mortgage pool information to the Mortgage Backed Securities Division (MBSD) of FICC. EPN serves as the industry standard for agency mortgage-backed securities pool notification. It brings the benefits of automation and innovation to the mortgage-backed securities (MBS) marketplace, and it enables users to reduce risk and streamline their operations by providing an automated way for sellers to transmit MBS pool information to buyers in a quick, efficient and reliable fashion.

ESS

Envelope Settlement Service (ESS) is a DTCC service that standardizes and controls participant-to-participant physical delivery of securities in the New York metropolitan area.

ETF

An Exchange Traded Fund (ETF), is a type of security that involves a collection or basket of securities such as, stocks that often track an underlying index, although they can invest in any number of industry sectors or use various strategies. ETFs are in many ways similar to mutual funds; however, they are listed on exchanges, and ETF shares trade throughout the day just like ordinary stock.

FAST

The Fast Automated Securities Transfer Program (FAST) is the DTC system for the immobilization of securities certificates, through which transfer agents of issuers also act as agents of DTC under an agreement with DTC, for holding securities on behalf of DTC, registered in the name of Cede & Co. as nominee DTC and FAST agents electronically reconcile securities holdings daily.

FATCA

Foreign Account Tax Compliance Act (FATCA), is designed to combat tax evasion by U.S. persons holding accounts and other financial assets offshore. Under FATCA, certain U.S. taxpayers holding financial assets outside the United States must report those assets to the IRS on Form 8938, Statement of Specified Foreign Financial Assets. FATCA will also require certain foreign financial institutions (non-U.S.) to report directly to the IRS information about financial accounts held by U.S. taxpayers or by foreign entities in which U.S. taxpayers hold a substantial ownership interest. The reporting institutions will include not only banks, but also other financial institutions, such as investment entities, brokers, and certain insurance companies. Some non-financial foreign entities will also have to report certain of their U.S. owners.

FDIC

The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by the Congress to maintain stability and public confidence in the nation's financial system.

FFI

A Foreign Financial Institution (FFI) is a specific designation in the Foreign Account Tax Compliance Act (FATCA). An FFI is defined as any financial institution that is a foreign entity, other than a financial institution organized under the laws of a possession of the United States. The term "financial institution" in this context also has a specific definition, as per FATCA.

FHA

The Federal Housing Administration (FHA) is a U.S. agency offering mortgage insurance to FHA-approved lenders that meet specific qualifications. Mortgage insurance protects lenders against losses from mortgage defaults. If a borrower defaults on a loan, the FHA pays the lender a specified claim amount.

FHLB

The Federal Home Loan Bank (FHLB), system is a consortium of 11 regional banks across the U.S. that was created by the federal government to keep a reliable stream of cash available to other banks for lending to individuals.

FHLMC

The Federal Home Loan Mortgage Corporation (FHLMC), also known as Freddie Mac, was created in 1970 to expand the secondary market for mortgages in the U.S. Along with the Federal National Mortgage Association (Fannie Mae), Freddie Mac buys mortgages on the secondary market, pools them, and then sells them as mortgage-backed securities to investors in the open market.

FICC

The Fixed Income Clearing Corporation (FICC) is a New York corporation and DTCC subsidiary that is (i) a central counterparty focused on the U.S. government securities market and mortgage-backed securities market and (ii) registered with and regulated by the SEC as a Clearing Agency.

FinCEN

The Financial Crimes Enforcement Network (FinCEN) is a bureau of the United States Department of the Treasury that collects and analyzes information about financial transactions in order to combat domestic and international money laundering, terrorist financing, and other financial crimes.

FINRA

The Financial Industry Regulatory Authority (FINRA) is a government-authorized not-for-profit organization that writes and enforces the rules governing registered brokers and broker-dealer firms in the United States.

FINS

The term Financial Industry Number Standard (FINS) represents a six-digit number assigned by The Depository Trust Company (DTC) upon request to financial institutions engaged in activities involving securities.

FIS

Family Issued Securities (FIS) component is an automatic margin requirement that is designed to manage wrong way-risk. The FIS Charge is the Clearing Fund component that addresses specific wrong-way risk and applies if a Member holds a net long unsettled FIS position.

FIX

Financial Information eXchange (FIX), is a vendor-neutral, non-proprietary, free and open standard electronic communications protocol for the international real-time exchange of securities transaction information. The FIX messaging standard is owned, maintained and developed through the collaborative efforts of the FIX Trading Community™ member firms. The FIX protocol language is comprised of a series of messaging specifications used in trade communications.

FMAT

A Fully Matched Trade (FMAT) is trade in which all the parties to the trade have submitted matching trade data.

FMIs

Financial Market Infrastructures (FMIs) are multilateral systems among participating financial institutions, including the system operator, used for the purposes of clearing, settling, or recording payments, securities, derivatives, or other financial transactions.

FNMA

The Federal National Mortgage Association (FNMA), also known as Fannie Mae, was created in 1938 to expand the secondary market for mortgages in the U.S. Along with the Federal Home Loan Mortgage Corporation (Freddie Mac), Fannie Mae buys mortgages on the secondary market, pools them, and then sells them as mortgage-backed securities to investors in the open market.

FOS

Funds-Only Settlement (FOS) is the result of a cash pass-through process for FICC services. FOS provides a standardized, automated method for settling calculated marked-to-market values as well as payment/receipt of interest earned and other cash adjustments between FICC and its member's settling banks.

FRA

A Forward Rate Agreement (FRA) is a cash-settled over-the-counter interest-rate derivative product. FRAs are a single-period swap settled in advance, allowing buyers to lock in a fixed rate in exchange for payments that are based on the difference of the fixed rate and floating rate.

FRB

The Federal Reserve Bank (FRB) is a regional bank of the Federal Reserve System, the central banking system of the United States. There are twelve in total, one for each of the twelve Federal Reserve Districts that were created by the Federal Reserve Act of 1913. The banks are jointly responsible for implementing the monetary policy set forth by the Federal Open Market Committe.

FRN

A Floating Rate Note (FRN) A debt instrument for which the interest rate is adjusted periodically according to a predetermined formula, usually linked to an index.

FSET

A Fully Settled Trade (FSET) is a trade with no remaining open par value.

FSOC

The Financial Stability Oversight Council (FSOC), a division of the U.S. Department of the Treasury, was formed as a part of the passage of the Dodd-Frank Act to monitor risks to the US financial sector from the issues of large banks or financial holding companies that could derail the economy.

FTP

File Transfer Protocol (FTP) is a standard network protocol used for the transfer of computer files across a computer network.

FTS

The File Transmission Service (FTS) allows participants to interact with the Mortgage-Backed Securities Division (MBSD) via MBSD's proprietary file transmission format, interactive messaging, and/or SWIFT batch file transmission service.

FX

A Foreign Exchange Rate (FX) is the value of a country's currency versus that of another country or economic zone.

GCD

The ALERT Global Custodian Direct (GCD) workflow automates the exchange of Standing Settlement Instructions (SSIs) between a custodian's central repository and the ALERT host, using dedicated ISO 20022 messages. This enables the global custodian/prime broker to become the owner/maintainer of the SSI data, which effectively creates the "golden copy" of SSI data within the ALERT platform.

GCF

General collateral financing (GCF) trades are a type of repurchase agreement (repo) that is executed without the designation of specific securities as collateral until the end of the trading day.

GDM

The Securities Industry and Financial Markets Association (SIFMA) has established guidelines that are considered good delivery of Mortgage-Backed Securities. FICC follows the guidelines based on the current face of the pool.

GFMA

The Global Financial Markets Association (GFMA), brings together three of the world’s leading financial trade associations and represents the common interests of the world’s leading financial and capital market participants to provide a collective voice on matters that support global capital markets. The Association for Financial Markets in Europe (AFME) in London, Brussels and Frankfurt, the Asia Securities Industry & Financial Markets Association (ASIFMA) in Hong Kong, and the Securities Industry and Financial Markets Association (SIFMA) in New York and Washington are, respectively, the European, Asian and North American members of GFMA.

GICS

The Global Industry Classification Standard (GICS) is a four-tiered, hierarchical industry classification system. Companies are classified quantitatively and qualitatively. Each company is assigned a single GICS classification at the Sub-Industry level according to its principal business activity.

GIIN

The Global Intermediary Identification Number (GIIN) is a unique ID number that non-US financial institutions receive from the IRS when they register as a financial institution for FATCA (Foreign Account Tax Compliance Act).

GLEIF

The Global Legal Entity Identifier Foundation (GLEIF) is an organization that issues LEIs. The Legal Entity Identifier (LEI) is a 20-character, alpha-numeric code based on the ISO 17442 standard developed by the International Organization for Standardization (ISO).

GNMA

The Government National Mortgage Association (GNMA), also known as Ginnie Mae, was created in 1968 to expand affordable housing in the U.S. Ginnie Mae is a federal government corporation that guarantees the timely payment of principal and interest on mortgage-backed securities (MBS) issued by approved lenders.

GSCC

Government Securities Clearing Corporation (GSCC) (no longer in use). This area is now part of FICC.

GSD

Government Securities Division (GSD) is a division of FICC that provides clearing and other services related to government securities.

GSE

A Government Sponsored Enterprise (GSE) is a quasi-governmental entity established by acts of Congress to enhance the flow of credit to specific sectors of the American economy. These agencies, although privately held, provide public financial services. GSEs help to facilitate borrowing for a variety of individuals, including students, farmers, and homeowners. Government-sponsored enterprises (GSEs) do not lend money to the public directly; instead, they guarantee third-party loans and purchase loans in the secondary market, ensuring liquidity. Mortgage issuers Fannie Mae and Freddie Mac are examples of government-sponsored enterprises (GSEs).

GST

A Goods and Services Tax (GST), also known as a Value-Added Tax (VAT), is a consumption tax that is assessed on products at each stage of the production process – from labor and raw materials to the sale of the final product. The VAT is assessed incrementally at each stage of the production process where value is added. However, it is ultimately passed on to the final retail consumer. VAT is the world’s most common form of consumption tax, in place in more than 160 countries, including every economically advanced nation except the United States.

GTR

DTCC's Global Trade Repository (GTR) service provides trade repository services for derivatives and securities financing transactions. With its global reach and multi-product functionality, GTR, the industry leader in trade reporting, is a one-stop shop that enables users to meet their regulatory reporting obligations wherever they are located via a single platform.

GUP

The Global Ultimate Parent (GUP) is defined as the legal organization at the top of a corporate structure that has a majority ownership stake in an associated entity within that corporate hierarchy. GUP is used by DTCC to link, calculate, and apply risk management controls across client subsidiaries.

ICI

Investment Company Institute (ICI) is a leading, global association of regulated funds, including mutual funds, exchange-traded funds (ETFs), closed-end funds, and unit investment trusts (UITs) in the United States and similar funds offered to investors in jurisdictions worldwide.

IM

Interactive Messaging (IM) Allows participants to interact with MBSD RTTM via a scalable automated computer-to-computer interface methodology.

IPA

An Issuing and Paying Agent (IPA), is an institution that acts on behalf of the issuer of securities in distributing the securities and in realizing the proceeds thereof for the benefit of the issuer. Also, on behalf of an issuer, an IPA makes payments to holders of securities.

IPO

An initial public offering (IPO), refers to the process of offering shares of a private corporation to the public in a new stock issuance.

IRA

An individual retirement account (IRA), is a tax-advantaged investing tool that individuals use to earmark funds for retirement savings.

ISC

The Industry Steering Committee (ISC) provides guidance, direction, and support for the effort to migrate to a T+1 settlement cycle.

ISIN

The International Security identification Number (ISIN) consists of a country code, a nine-character alphanumeric code that identifies the security, and an ISIN check digit (when the country code is not US).

ISO

The International Organization for Standardization (ISO), is an international non-governmental organization made up of national standards bodies; it develops and publishes a wide range of standards, such as electronic data standards for messages interchanged between financial institutions.

ITP

DTCC’s Institutional Trade Processing (ITP), service suite has its origins in the set of trade processing solutions that constituted the Omgeo business. Combining DTCC’s global solution for legal entity identifiers and its settlement capabilities with the formerly Omgeo-branded pre-trade and matching services, ITP offers buy-side, sell-side and custodian firms an end-to-end straight-through-processing solution for their trading activity.

IWG

The Industry Workng Group (IWG) supports the ISC by identifying the business requirements, rule changes, and recommending next steps for the industry initiative.

KYC

Know Your Customer (KYC) is a standard Anti-Money Laundering (AML) program requirement in which financial services regulators require that covered financial institutions make risk-based efforts to verify the identity, suitability, and risks involved with maintaining a business relationship. The procedures fit within the broader scope of a financial institution’s AML policy.

LEI

The Legal Entity Identifier (LEI), is a 20-character, alpha-numeric code based on the ISO 17442 standard developed by the International Organization for Standardization (ISO). It connects to key reference information that enables clear and unique identification of legal entities participating in financial transactions.

LIS

Lenders' Issued Securities (LIS) are securities that are issued by any affiliate of any lender (i.e., family-issued securities or “FIS”) that participate in the LOC facility of NSCC (collectively, “Lender FIS”) are excluded from the definition of eligible collateral securities under the liquidity resources marking them as Lender Issued Securities.

LOU

A Local Operating Unit (LOU) is an organization authorized to issue Legal Entity Identifiers (LEIs). An LOU supplies registration, renewal and other services, and acts as the primary interface for legal entities wishing to obtain an LEI. Only organizations duly accredited by the Global Legal Entity Identifier Foundation (GLEIF) are authorized to issue LEIs.

MAOC

A MAOC is a Merger, Acquisition, or Organizational Change. Every participant of The Depository Trust Company (DTC), National Securities Clearing Corporation (NSCC) or the Mortgage Backed Securities Division (MBSD) or Government Securities Division (GSD) of the Fixed Income Clearing Corporation (FICC) is required to notify the appropriate DTCC subsidiary or division of which it is a member in the event that the participant is affected by a MAOC.

MBSD

Mortgage-Backed Securities Division (MBSD) is a division of FICC that provides clearing and other services related to mortgage-backed securities.

MFSP

DTCC's Mutual Fund Profile Service (MFPS I and II) offers multiple solutions to automate workflows for funds, firms and broker/dealers. MFPS I provides fund companies with an automated solution for delivering prices and daily distribution rates to intermediaries. MFPS II is a multi-dimensional repository of three databases that allows funds, firms, and broker/dealers to automate and streamline the exchange of accurate and timely information on securities, participants, and distributions.

MLA

NSCC uses a baseline Margin Liquidity Adjustment (MLA) model to account for the potential additional market impact costs associated with liquidating a portfolio that is relatively large in size with respect to available market-wide liquidity.

MMI

A Money Market Instrument (MMI), is classified as a debt security, such as commercial paper or a medium-term note. These instruments are used for short-term financing and considered cash equivalents since they are liquid.

MRD

The margin requirement differential (MRD) charge is designed to help mitigate the risks posed to NSCC by day-over-day fluctuations in a Member’s portfolio by forecasting future changes. The MRD charge is based on a historical look-back at each Member’s portfolio over a given time period.

MSLA

A Master Securities Loan Agreement (MSLA) is an agreement for use when parties may enter into transactions in which one party (a “Lender”) will lend to the other party (a “Borrower”) certain securities against a transfer of collateral.

MSRB

The Municipal Securities Rulemaking Board (MSRB) is the primary regulator of municipal securities (munis) issued in the United States, subject to oversight from the Securities Exchange Commission (SEC). The MSRB is a self-regulatory organization that sets standards and best practices for both issuers and dealers of munis, mandating transparency of information and disclosure on each issue.

MTD

Month-to-date (MTD), is a period starting at the beginning of the current calendar month and ending at a point in time within the current month.

MTM

The mark-to-market (MTM) component measures the unrealized profit or loss using the contract price versus the current market price (that is, the price for a security determined daily for purposes of the CNS system; generally, that is the prior day's closing price).

NAICS

The North American Industry Classification System (NAICS), is a business-classification system developed through a partnership among the United States, Mexico and Canada. This classification system facilitates the comparison of statistics of all business activities across North America. Companies are classified and separated into industries that are defined by the same or similar production processes.

NASD

The National Association of Securities Dealers (NASD), was a nonprofit organization formed under the joint sponsorship of the investment bankers' conference and the SEC to comply with the Maloney Act, which provides for the regulation of the OTC market. The NASD merged with the NYSE's committee that did a similar job. The new organization is called the Financial Industry Regulation Authority or FINRA.

NASDAQ

The National Association of Securities Dealers Automated Quotations (NASDAQ), is a global electronic marketplace for buying and selling securities. The NASDAQ market is considered a major stock exchange based on market capitalization of shares.

NAV

Net Asset Value (NAV), is defined as the net value of an investment fund’s assets less its liabilities, divided by the number of shares outstanding.

NIIDS

New Issue Identification Dissemination System (NIIDS) is an automated system that disseminates new-issue information for municipal securities to vendors that provide such information to market participants. NIIDS also serves as the centralized and automated hub for the collection and dissemination of the required information to satisfy the Municipal Securities Rulemaking Board’s (MSRB’s) reporting standards.

NSCC

DTCC's subsidiary, National Securities Clearing Corporation (NSCC), established in 1976, provides clearing, settlement, risk management, central counterparty services and a guarantee of completion for certain transactions for virtually all broker-to-broker trades involving equities, corporate and municipal debt, American depositary receipts, exchange-traded funds, and unit investment trusts.

NYSE

The New York Stock Exchange (NYSE), founded in 1792, is the oldest and largest stock exchange in the U.S.; also known as the Big Board and The Exchange. Stocks, bonds, options and rights are traded on the floor of the exchange. The NYSE is the largest equities-based exchange in the world, based on the total market capitalization of its listed securities.

O-Code

Originator Code, or O-Code, is a DTCC-assigned unique identifier for a client organization that is used to authorize client access to client data. An O-Code can be present on one or multiple accounts under an organization, and is used to group access to underlying accounts.

OCC

OCC can refer to: (1) The Office of the Comptroller of the Currency (OCC) charters, regulates, and supervises all national banks and federal savings associations as well as federal branches and agencies of foreign banks. The OCC is an independent bureau of the U.S. Department of the Treasury; (2) The Options Clearing Corporation (OCC), is an organization that acts as both the issuer and guarantor for options and futures contracts. Founded in 1973, the OCC is the largest equity derivatives clearing organization in the world.

OMS

An order management system (OMS) is a computer software system used in a number of industries for order entry and processing.

PID

A Unique Pool Transaction ID (PID) is assigned by the pool netting system that is carried throughout the lifecycle of the pool instruct. Each accepted pool instruct will be assigned a PID. PID is sometimes used to refer to a pool instruct.

PIER

The Participant Information and Efficiency Report (PIER) provides a monthly summary of a client’s DTCC utilization activity. This report displays the firm’s trading relationships and transactional volume activity totals by product. For products having a money settlement component, the report includes the firm’s gross settlement amount for a given month.

PII

Personal Identifiable Information (PII) refers to information that can be used on its own or combined with other information to identify an individual (e.g., name, address, phone number, email address, etc.).

PIK

PIK (Payment in Kind) is a bond that gives the issuer an option (during an initial period) either to make coupon payments in cash or in the form of additional bonds.

PMAT

A Partially Matched Trade (PMAT) is a trade that occurs when either the selling or buying dealer (but not both) and the broker have matching trade terms.

PO

DTC’s Payment Order (PO), service allows a participant to settle money payments for transactions that were processed separately through DTC either earlier that same day or on the previous day. There are two types of payment orders at DTC: Security Payment Orders (SPO’s) are used to collect a mark-to-market payment based on the difference between the current and previous market values of an open securities contract. Premium Payment Orders (PPO”s) are used to collect a net option contract premium for an opening writing or closing purchase transaction.

POID

A Unique Pool Obligation ID (POID) is assigned by the pool netting system as the result of the obligation generation process. A POID is carried throughout the lifecycle of the pool obligation. Each pool obligation generated by the pool netting system (to be settled by members versus FICC as CCP) will be assigned a POID.

PSET

PSET can refer to: (1) A Partially Settled Trade (PSET) is a trade with remaining open par value; (2) The Place of Settlement (PSET), is the receiving/delivering depository and is to be understood as the depository where the settlement will occur. The receiving depository in a delivery message, and the delivering depository in a receipt message, always relates to the depository where the counterparty instructions settle.

PSOP

DTC’s Participant Subscription Offer Program (PSOP) processor allows participants to process information regarding rights offerings including subscriptions.

PTOP

DTC’s Participant Tender Offer Program (PTOP) processor allows participants to process information regarding tender and exchange offers.

QSR

Qualified Special Representative (QSR) is a NSCC full service member who has been granted status for the purpose of locking in trades for other NSCC members and/or their correspondent.

RAD

The Reciver Authorization Delivery (RAD) process is a matching process that enables DTC receiving Participants to review and either approve or cancel a Deliver Order (DO).

RDS

DTCC’s Repository and Derivatives Services (RDS) is a business dedicated to providing solutions for trade reporting and derivatives contract servicing. Repository Services enable firms to meet their global trade repository and reporting obligations for derivatives and securities financing transactions (SFT) through DTCC’s locally registered trade repositories as part of the Global Trade Repository service (GTR). The GTR ingests, validates, stores, and reports OTC and ETD derivative transaction information across all derivative asset classes. The GTR supports 5,250 clients across 8 jurisdictions, ingesting 1BN+ messages per month, storing 49m open positions, servicing 60+ regulators across 35 countries, comprised of over 300TB of derivatives data.

REIT

Real Estate Investment Trust (REIT), is a publicly traded issue that manages a portfolio of real estate to earn profits. Traditionally these issues are eligible at DTC. Real Estate Investment Trust, an organization similar to an investment company in some respects but concentrating its holdings in real estate investments.

REPO

A Repurchase Agreement (REPO) is a fixed-income product. One party to the agreements sells securities to another and simultaneously agrees to buy back the same or similar securities at a specific future date at an agreed-upon price.

ROC

Release of Controls (ROC), is a DTC settlement operational event that signals the successful conclusion of end of day settlement collection/disbursement with settling banks. This event does not mean that all participants settled with DTC, since there is a function that permits settlement to continue to apply the collateral control to accounts that may not have settled. Additionally, transactions free of value continue to be processed after Release of Controls.

RTP

A Refusal To Pay (RTP), is an instruction issued for either of the following two scenarios: An Issuer failure for Money Market Instrument (MMI) Securities where an issuing and paying Agent (IPA) refuses to pay for the presentment of maturity, income, principal and reorg payments for MMI securities. This typically occurs upon the default or insolvency of an issuer: A Settling Bank RTP where a settling bank refuses to settle on behalf of one or more participants it settles for.

RTRS

A Real-time reporting System (RTRS) is a business intelligence practice that consists of gathering up-to-the-minute data and relaying it to users as it happens.

RTTM

Real-Time Trade Matching (RTTM) provides a common electronic platform for collecting and matching trade data, enabling the parties to trades to monitor and manage the status of their trade activity in real time. Through RTTM, the parties can track a transaction from trade entry through to clearance and regulatory reporting.

SBO

Settlement Balance Orders (SBO) are orders that constitute the net positions of a Clearing Member as a result of the TBA Netting process. The resulting transactions from this TBA Netting process are identified as SBON Trades.

SBOD

Settlement Balance Order Destined (SBOD) is a trade type used for trades in TBA CUSIPs eligible for SBO processing, when TBA netting is desired.

SBON

Settlement Balance Order Netted (SBON) is the resulting transactions from the TBA Netting process.

SCI

The U.S. Securities and Exchange Commission (SEC) adopted Regulation Systems Compliance and Integrity (SCI) to strengthen the technology infrastructure of the U.S. securities markets. Specifically, the rules are designed to: reduce the occurrence of systems issues, improve resiliency when system problems do occur, and enhance the Commission's oversight and enforcement of securities market technology infrastructure. Regulation SCI applies primarily to the systems of SCI entities that directly support any one of six key securities market functions - trading, clearance and settlement, order routing, market data, market regulation, and market surveillance ("SCI systems").

SDN

Specially Designated Nationals (SDN), is a United States government sanctions/embargo list, managed by the Office of Foreign Assets Control (OFAC) targeting U.S.-designated individuals and companies owned or controlled by, or acting for or on behalf of, targeted countries. It also lists individuals, groups, and entities, such as designated terrorists, officials and beneficiaries of certain authoritarian regimes, and international criminals (e.g., drug traffickers), designated under programs that are not country-specific. Collectively, such individuals and companies are called "Specially Designated Nationals" (SDNs). Their assets are blocked and U.S. persons are generally prohibited from dealing with them.

SEC

The U.S. Securities and Exchange Commission (SEC), is an independent agency of the United States federal government that protects investors by maintaining fair, orderly, and efficient markets and facilitating capital formation.

SEDOL

The Stock Exchange Daily Official List (SEDOL), is a seven-character identification code assigned to securities that trade on the London Stock Exchange and various smaller exchanges in the United Kingdom.

SEF

A Swap Execution Facility (SEF), is an electronic trading venue for derivative swap trading that provides pre-trade information, and a mechanism for executing swap transactions among eligible participants. Swap Execution Facilities are regulated by the Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC).

SIC

The Standard Industrial Classification (SIC), is a four-digit code that categorizes the industries that companies belong to while organizing them by their business activities.

SIFMA

The Securities Industry and Financial Markets Association (SIFMA), is a United States industry trade group representing securities firms, banks, and asset management companies. The group works on legislation, business policy and regulations that affect investors and related services. Their stated goal is to promote fair markets and regulatory compliance.

SIFMU

Systemically Important Financial Market Utility (SIFMU) is an entity whose failure or disruption could threaten the stability of the US financial system as designated by Financial Stability Oversight Council under Tile VIII of the Dodd-Frank Act. DTC, NSCC and FICC are each a SIFMU.

SLPO

A Stock and Loan and Repurchase Payment Order (SLPO) facilitates the exchange of funds between lenders and borrowers involved in stock loans and repurchase payment orders (repos).

SOAP

Simple Object Access Protocol (SOAP) is an Extensible Markup Language (XML) based messaging protocol specification for exchanging structured information in a decentralized and distributed environment. Its purpose is to provide extensibility, neutrality, and independence between service providers and consumers. It allows services running on disparate operating systems (such as Windows, macOS, and Linux) to be invoked and to authenticate, authorize, and communicate using XML. It is most often used with HTTP (Hypertext Transfer Protocol) as the transport protocol.

SPC

The Shortened Process Cycle (SPC) charge is based on the amount of positions processed as non-standard settling trades. Since these trades are guaranteed before margin is collected, the SPC charge covers the additional exposure. SPC calculates a volatility charge daily on these positions. The highest three days are averaged from 20 days of history and result in the SPC charge.

SPP

Settlement Progress Payments (SPP) are intraday funds transfers via Fedwire to the DTC Master Account at the Federal Reserve Bank of New York. SPPs are credited towards any settlement obligation of the Participant and, by reducing the amount of the Participant’s net debit balance, may permit additional DVP transactions to process intraday.

SPT

A Specified Pool Trade (SPT) is a trade where the pool number and original face are agreed to terms at the time of the trade. The parties to the trade have a legal obligation to deliver that specified pool in order to satisfy the terms of the trade. Although a SPT is a type of Trade-for-Trade, it is listed separately because the mandatory fields required for submission to RTTM® are different. For SPT's the pool number or pool CUSIP is part of the trade terms at trade execution. SPTs do not have to follow the SIFMA settlement calendar and are not allocated, since the pool is already known at the time of the trade.

SRO

A Self-Regulatory Organization (SRO) is an organization that exercises some degree of regulatory authority over an industry or profession. The regulatory authority could be applied in addition to some form of government regulation, or it could fill the vacuum of an absence of government oversight and regulation.

SSI

Standing Settlement Instructions (SSI) govern the delivery of financial instruments between two counterparties.

STIP

A TBA trade with stipulation (STIP) are trades in which there is a stipulation on one of more of the trade terms. Although members submit trades into the Real Time Trade Matching (RTTM) system indicating that they are STIP, the actual stipulated terms are unknown to FICC. STIPs are not included in the TBA netting process and must be allocated via Electronic Pool Notification (EPN) and will be converted to pool obligations to settle based on the settlement date agreed to as part of the terms of the trade.

STP

Straight-Through Processing (STP) is the automated processing of a transaction or piece of work from beginning to end requiring no manual participation or intervention; including the handling of any exceptions that could possibly occur during processing. Based on DTCC’s Life Cycle of a Security, STP is an automated communications environment in which data are entered once and forwarded electronically through every phase of a security transaction from trade to settlement, never having to be re-entered. This reduces errors and speeds up processing.

STRIPS

Separate Trading of Registered Interest and Principal of Securities (STRIPS) are U.S. Treasury and agency securities that have had the interest-payment coupons separated or “stripped” from the principal, creating zero-coupon securities and separate payment securities from what was originally a single Treasury bond or note).

SWIFT

The Society for Worldwide Interbank Financial Telecommunications (SWIFT), is an industry-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, SWIFT uses a standardized proprietary communications platform to facilitate the transmission of information about financial transactions. Financial institutions securely exchange this information, including payment instructions, among themselves.

TBA

The term TBA or "To-Be-Announced” means a contract for the purchase or sale of a mortgage-backed security to be delivered at an agreed-upon future date because as of the transaction date, the seller has not yet identified the terms of the contract (such as the pool information) to the buyer.

TFID

The Thomson Financial Identifier (TFID) is an Institutional Trade Processing (ITP)-specific client identifier that is automatically generated by People and Orgainization (PNO), when a client organization is created in the PNO database.

TID

A Transaction ID (TID) A 10-digit number that is generated by the RTTM system upon trade acceptance to identify a specific transaction.

TIN

Taxpayer Identification Number (TIN) is an identification number used by the Internal Revenue Service (IRS) in the administration of tax laws. It is issued either by the Social Security Administration (SSA) or by the IRS. A Social Security number (SSN) is issued by the SSA whereas all other TINs are issued by the IRS.

UTC

Universal Trade Capture (UTC) is a service that validates and reports equity transactions that are submitted to NSCC throughout the trading day by an exchange or by Qualified Special Representatives (QSRs) that is an NSCC Member.

UTI

A Unique Trade Identifier (UTI) is a synthetically created DTCC internal identifier used to uniquely identify trades that are ingested into the GTR.

UWC

Underwriting Central (UWC) is one of the core applications used for the DTC New Issue Eligibility service and currently supports the distribution of Retail (brokered) Certificates of Deposit in electronic form (eCDs). In UWC, the Underwriter has the ability to disseminate electronic master certificates to the Issuer for electronic signature. The signed eCD certificate is then stored in an eVault.

VaR

Value-at-Risk (VaR) is a risk measure intended to aid in market volatility anticipation based on a predefined historical look-back period and confidence level.

VAT

Value-Added Tax (VAT), also known as Goods and Services Tax (GST), is a consumption tax that is assessed on products at each stage of the production process – from labor and raw materials to the sale of the final product. The VAT is assessed incrementally at each stage of the production process where value is added. However, it is ultimately passed on to the final retail consumer. VAT is the world’s most common form of consumption tax, in place in more than 160 countries, including every economically advanced nation except the United States.

VRDO

A Variable Rate Demand Obligation (VRDO), is a municipal or corporate debt instrument that has weekly put features and pays interest at a variable rate.

WAC

The Weighted Average Coupon (WAC), is the weighted average of the coupon interest rates of the underlying loans. If the collateral consists of pools, as with FHLMC Giants, FNMA Megapools, or GNMA Platinums, then it is the weighted average of the underlying pool WACs. If WAC is not published for a pool, it is approximated by adding an assumed service fee to the published Coupon rate. The difference between the WAC and the Coupon is known as the service fee - the fee retained by the servicer.

WALA

The Weighted-Average Loan Age (WALA), is the weighted average number of months since origination of the underlying loans, or, if the collateral consists of pools, the weighted average of the underlying pool WALAs.

WAM

The Weighted-Average Maturity (WAM), is the weighted average of the number of months to maturity of the underlying loans, or, if the collateral consists of pools - as with FHLMC Giants, FNMA Megapools and GNMA Platinums - the weighted average of the underlying pool WAMs. Also known as weighted average remaining maturity (WARM) and weighted average remaining term (WART).

WT

A Withdrawal By Transfer (WT), is a type of withdrawal of physical securities from DTC for re-registration. The certificates are transferred from the DTC's nominee name, Cede & Co., to the name of a participant or customer.

XML

Extensible Markup Language (XML) is a markup language that defines a set of rules for encoding documents in a format that is both human-readable and machine-readable.

XREF

An External Reference (XREF) is a unique internal identifier assigned by a participant to each trade. The XREF assists participants in the reconciliation process and can be up to 16 alphanumeric characters.

YTD

Year-To-Date (YTD), is a period, starting from the beginning of the current year (either the calendar year or fiscal year) and continuing up to the present day.

Welcome to the Cross-Business Glossary of DTCC & Industry Terms