Payments and markets glossary

A card transaction which is authorised without contacting the issuer at the time of the transaction. Antonym: online card transaction

A card transaction which is authorised following explicit approval by the issuer at the time of the transaction. Antonym: offline card transaction

A direct link between two central securities depositories (CSDs) where a third party, typically a custodian bank, operates the account in the issuer CSD on behalf of the investor CSD. See also direct link

A procedure determining the order in which transfer orders are to be processed and settled in a transfer system in order to increase settlement efficiency. See also chaining, queue management

over-the-counter

A method of trading that does not involve a regulated market. In over-the-counter markets, participants trade directly with each other, typically through telephone or computer links.

An in-person transaction at a bank in which cash is withdrawn from an account at that bank.

A typical central bank function whereby the objectives of safety and efficiency are promoted by monitoring existing and planned systems, assessing them against the applicable standards and principles whenever possible and, where necessary, fostering change. Oversight activities increasingly relate also to securities clearing and settlement systems.