ACI Operations Certificate flashcards
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20 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Trade date
- The date on which the parties agree the transaction, distinguished from its value date, payment date or later recording correction.
- Value date
- The agreed effective settlement date under the relevant transaction conditions and calendars, rather than one universal delay for every product.
- Base currency
- The currency whose unit amount is priced in the quotation, with the other currency expressing the quoted price per unit.
- Quote currency
- The currency used to state the price of a unit of base currency, determining the direction and units of an exchange calculation.
- Bid
- The price at which the quoting party buys the specified base instrument, requiring the stated quotation and transaction perspective.
- Ask
- The price at which the quoting party sells the specified base instrument, distinguished from the side used when that party buys it.
- Confirmation
- A communication recording the agreed transaction details for comparison and control, rather than proof that the final settlement has already occurred.
- Settlement instruction
- Authorized information directing the relevant transfer, whose changes need the established verification and approval process before use.
- Nostro
- Our institution account held with another institution from our perspective, requiring reconciliation with the relevant statement and internal records.
- Vostro
- Another institution account held with our institution from our perspective, describing a different viewpoint on the correspondent banking relationship.
- Reconciliation
- Comparison and investigation of differences between relevant records, with supported corrections rather than an unsupported entry forcing balances to agree.
- Exception
- An unmatched, inconsistent or otherwise flagged item requiring investigation under the control process, whose cause is not established merely by its size.
- Delivery versus payment
- A settlement arrangement linking delivery of securities with the corresponding payment under defined conditions, addressing particular principal-risk exposure.
- Payment versus payment
- An arrangement linking payments in different currencies under defined conditions, without removing every operational, legal, liquidity or credit risk.
- Netting
- Combining relevant obligations under an agreed framework to determine a net amount, whose legal and operational basis must be established.
- Day-count convention
- The rule defining the relevant time fraction in a financial calculation, requiring the stated instrument and terms rather than an assumed common denominator.
- Cutoff
- A deadline relevant to a payment or processing service, depending on the system, currency, date and agreed service conditions.
- Straight-through processing
- Electronic processing intended to reduce manual intervention across the transaction lifecycle, while preserving controls, reconciliations and exception handling.
- Segregation of duties
- Separation of incompatible transaction and control responsibilities to reduce opportunities for error or misuse, supported by access controls and review.
- Operational risk
- Risk of loss from inadequate or failed processes, people or systems or external events, distinguished from the economic return of a trade alone.