Document ID: chunk:federal_register_of_legislation:F2024L00683:body:0:p20
Version: federal_register_of_legislation:F2024L00683
Segment Type: other
Provision Reference: 
Character Range: 54766–57974

section 50AAA of the Corporations Act 2001.
book entry                              The transfer of securities and other financial assets which does not involve the physical movement of paper documents or certificates (for example, the electronic transfer of securities).
business continuity                     A state of uninterrupted business operations. This term also refers to all of the organisational, technical and staffing measures used to ensure the continuation of operations following a disruption to a service, including in the event of a wide-scale or major disruption.
central bank money                      A liability of a central bank, in this case in the form of deposits held at the central bank, which can be used for settlement purposes.
central counterparty                    An entity that interposes itself between counterparties to contracts traded in one or more financial markets, becoming the buyer to every seller and the seller to every buyer, and thereby ensuring the performance of open contracts.
central securities depository           An entity that provides securities accounts, central safekeeping services and asset services, which may include the administration of corporate actions and redemptions, and plays an important role in helping to ensure the integrity of securities issues (that is, ensure that securities are not accidentally or fraudulently created or destroyed or their details changed).
clearing                                The process of transmitting, reconciling and, in some cases, confirming transactions prior to settlement, potentially including the netting of transactions and the establishment of final positions for settlement. For the clearing of futures and options, this term also refers to the daily balancing of profits and losses and the daily calculation of collateral requirements.
collateral                              An asset or third-party commitment that is used by a collateral provider to secure an obligation vis-à-vis a collateral taker.
commercial bank money                   A liability of a commercial bank, in the form of deposits held at the commercial bank, which can be used for settlement purposes.
conflict of laws                        An inconsistency or difference in the laws of jurisdictions that have a potential interest in a transaction.
counterparty                            A party to a trade.
credit risk                             The risk that a counterparty, whether a participant or other entity, will be unable to meet fully its financial obligations when due, or at any time in the future.
current exposure                        The loss that a securities settlement facility (or in some cases, its participants) would face immediately if a participant were to default. Current exposure is technically defined as the larger of zero or the market value (or replacement cost) of a transaction or portfolio of transactions within a netting set with a counterparty that would be lost upon the default of the counterparty.
custody risk                            The risk of loss on assets held in custody in the event of a custodian's (or sub-custodian's) insolvency, negligence, fraud, poor