BC Number
Bank Clearing Number. Each financial institution participating in SIC and/or euroSIC can be identified with a BC number.

BIC
Bank Identifier Code. 8 resp. 11 digit code identifying financial institutions participating in the SWIFT system.

Clearing
The process of transmitting, reconciling and, in some cases, confirming payment orders or security transfer instructions prior to settlement, possibly including the netting of instructions and the establishment of final positions for settlement. Sometimes the term is used to include settlement.

CLS
Continuous Linked Settlement: The global CLS payment system, operated by some of the world’s largest commercial banks, processes currency transactions in the major currencies according to the payment against payment principle. Processing on both sides of the currency transaction operates with simultaneous credit and debit of the settlement members’ accounts at the CLS Bank in New York. To facilitate this, each of the parties holds an account at the CLS Bank that gives them access to various national payment systems. Processing takes place via a direct link between SIC and the CLS Bank. This eliminates processing risks known as “Herstatt risks” (time-shifted processing that leads to considerable fulfilment risk). Direct system participants can use CLS services not only for their own purposes, but also offer them to their customers (third-party business).

Collateral
Security in form of stocks and bonds or moneys which are handed to the 'Cash Provider' by the 'Cash Taker'.

Cross-border settlement
A settlement that takes place in a country other than the country in which one trade counterparty or both are located.

DTA
The Swiss banks offer their customers to transmit payments over electronical channels in a standardized DTA format as a means of executing payments quickly, safely and paperless.

DVP
Delivery versus payment: a link between a securities transfer system and a funds transfer system that ensures that delivery occurs if, and only if, payment occurs.

EDIFACT
Electronic Data Interchange For Administration, Commerce and Transport. A comprehensive standard that covers the encoding and transmission of a variety of business documents. EDIFACT, or UN/EDIFACT, is supported by the United Nations. The USA uses EDI. The standard covers a variety of different aspects, although the technical infrastructure and intervention in data processing are costly.

Eurex
Eurex Zürich AG, European Exchange. Merger of the Swiss (SOFFEX) and German futures and options exchange DTB into a new international stock exchange.

euroSIC
Swiss (RTGS) system for the payment traffic in euro between banks within Switzerland and cross border.

Finality
Settlements in payment systems (e.g. SIC) which are both unconditional and irrevocable are designated as final.

Gross settlement system
A transfer system in which the settlement of funds or securities transfer instructions occurs individually (on an instruction-by-instruction basis). RTGS

IBAN
International Bank Account Number. In order to rationalize cross-border payments, the ISO (International Organization for Standardization) and the ECBS (European Committee for Banking Standards) have created the IBAN. It simplifies the recording, transmission and processing of payment data in Europe.

IBASEC
Interbank Security: Security system for SIC and other interbank applications. It ensures that the messages are transmitted unadulterated, that their sender is evident, that sending and receiving of messages cannot be disputed, and that confidentiality is guaranteed during message transmission.

Intraday credit
Credits with a maturity of less than a business day. Such credits are granted in order to facilitate the smooth processing of payments in payment systems. Intraday credits are usually provided interest-free by central banks.

LSV
Stands for Lastschriftverfahren (direct debit procedure). LSV+ and BDD are Swiss direct debit procedures for the processing of domestic and cross-border payments in francs and euros

Net settlement system
A system in which transfer orders are settled on a net basis. Some systems distinguish between types of transfer orders and settle some, such as payment orders, on a net basis and settle others, such as securities transfer orders, on an instruction-by-instruction basis.

Netting
An agreed setoff of mutual positions or liabilities between business partners or participants in a payment system. Netting reduces a large number of individual positions or liabilities to a smaller number of positions or liabilities. Netting can take different forms; these claims are legally enforceable to a varying extent in case of default by a participant.

PaCoS
Payments Committee Switzerland. The committee is responsible for consulting and supporting financial institutions and Swiss Interbank Clearing regarding product and market design and for communication. It also deals with the coordination and interest representation in national and international committees.

PAP
Project and IT Process Steering Committee. A standing committee reporting to the Board of Directors of Swiss Interbank Clearing Ltd. and mandated to ensure that the further development of payment systems services meets the banks' requirements. The PAP supports the banks and Swiss Interbank Clearing Ltd. in implementing strategies for joint projects and with the specification, development and operation of payment systems applications. It also rules on questions and problems that arise at the interfaces between the parties involved – the banks, Swiss Interbank Clearing Ltd. and the Swiss National Bank.

PVP
Payment versus payment: Mechanism in a foreign exchange processing system that ensures that the final transfer of one currency will occur if, and only if, the final transfer of the other currency occurs simultaneously as well.

Repo
Short for 'repurchase agreement'. Sale of securities connected with a simultaneous repurchase of those same securities at a future date which may or may not be set.

RTGS
Real Time Gross Settlement system. Clearing system with irrevocable settlement of each individual payment without settlement of a counterclaim (gross system).

SDS
Stammdatenservice (master data service) of Swiss Interbank Clearing Ltd. Administers the master data of SIC and euroSIC.

SECB
Swiss Euro Clearing Bank GmbH, Frankfurt. Multipurpose bank, specializing specifically in euro payment traffic and all related cash and collateral management services. It supervises and manages euroSIC.

SECOM
SIS Communication. Online system of the Swiss Banks for securities transactions both nationally and abroad.

SEPA
The creation of a single euro payments area (SEPA) by 2010 is an initiative of the European Payments Council (EPC). The EPC, a consortium of banks and bankers’ associations from throughout Europe, including Switzerland, has laid the foundation for a fully automated and standardized payment traffic infrastructure.

Settlement
The actual fulfilment of the payment order, i.e. the transfer of the payment from the sender bank to the receiver bank is called settlement. This transfer is carried out via a central counterparty. It releases the debtor from his/her payment obligation.

SIC
Swiss (RTGS) system for the payment traffic in euro between banks, under supervision of the Swiss National Bank.

SIS
SegaInterSettle AG, merger of SEGA (Swiss Security Clearing Corporation) and INTERSETTLE (Swiss Corporation for International Securities Settlements).

STP
Straight Through Processing: refers in the realm of payment traffic to the automatic processing of payment transactions from the ordering party right through to the beneficiary. The acronym is also used in connection with securities trading but the process involved is different.

SWIFT
Society for Worldwide Interbank Financial Telecommunications. Network operation facilitating the exchange of payments and other financial transactions world-wide.

Swiss Interbank Clearing Ltd.
Provider of the Swiss RTGS systems SIC and euroSIC, in addition to other payment transaction services on behalf of banks for the Swiss financial center.

Swiss Value Chain
Full electronic integration of securities' trading, handling and payment traffic through an association of the SWX Swiss Exchange, SIS and Swiss Interbank Clearing Ltd.

TARGET
Trans-European Automated Real-time Gross settlement Express Transfer system. Interlink between the clearing system of the EU member countries with same day payment settlement.