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Payments and markets glossary

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reachability
A credit institution is “reachable” if it can execute a credit transfer order and/or a direct debit instruction sent by any other bank in a particular currency area.
real-time gross settlement (RTGS) system
A settlement system in which processing and settlement take place on a transaction-by-transaction basis in real time.
realignment
The transfer of assets from the account of one investor central securities depository (CSD) to the account of another investor CSD, both of which are held with the issuer CSD, in order to reflect the transfer of assets between participants in those investor CSDs. See also
investor CSD
issuer CSD
reconciliation
A procedure to verify that two sets of records issued by two different entities match.
refund
In the field of direct debits, a claim made by a debtor for the reimbursement of debits effected from its account (with or without a specific reason being indicated by that debtor).
refusal
In the field of direct debits, an instruction issued by a debtor prior to settlement, for whatever reason, to the effect that the debtor bank should not make a direct debit payment.
registrar
See
registry (registrar)
registration
The documenting of the ownership of securities in the records of the issuer, in a registry or in a central securities depository (CSD).
registry (registrar)
An entity that records the ownership of securities on behalf of the issuer.
reject
In the field of payments, a payment transaction whose normal execution is prevented by the payment service provider of either the payer or the payee prior to settlement.
relayed link
A contractual and technical arrangement that allows issuer and investor central securities depositories (issuer and investor CSDs) to hold and transfer securities through an account with a third CSD (a “middle CSD”), which acts as an intermediary.
remote access
Direct access by an institution established in one country to a system (e.g. a payment system, a securities settlement system or a central counterparty (CCP)) established in another country.
remote participant
A participant in a system which operates from a country other than that in which the system in question is located.
remote payment
A payment made from a distance, without the payer and payee being present at the same physical location. Antonym:
face-to-face payment
replacement cost risk
The risk that, owing to a party to a transaction failing to meet its obligation on the settlement date, its counterparty may have to replace the original transaction at current market prices (“replacement cost”). See also
market risk
repurchase agreement
The process of borrowing money by combining the sale of an asset (usually a fixed income security) with the subsequent repurchase of that same asset for a slightly higher price (which reflects the borrowing rate).
retail funds transfer system
A funds transfer system which typically handles a large volume of payments of relatively low value in forms such as cheques, credit transfers and direct debits.
retail payment
A non-time-critical payment of relatively low value. These payments are typically made outside of the financial markets and are both initiated by and made to individuals and non-financial institutions. Antonym:
large-value payment
retailer card
A card issued by a merchant for use at specified merchant outlets.
returns
Funds sent back by the payee to the payer following settlement of the original payment instruction. The term “return” is used in connection with both direct debits and credit transfers.
RTGS system
See
real-time gross settlement (RTGS) system