Document ID: chunk:federal_register_of_legislation:F2024L00683:body:0:p24
Version: federal_register_of_legislation:F2024L00683
Segment Type: other
Provision Reference: 
Character Range: 66630–68595

securities transfers, both on its own behalf and for other market participants.
settlement risk                         The general term used to designate the risk that settlement in a funds or securities transfer system will not take place as expected. This risk may comprise both credit and liquidity risk.
stress testing                          The estimation of credit and liquidity exposures that would result from the realisation of extreme price changes.
systemic risk                           The risk that the inability of one or more participants to perform as expected will cause other participants to be unable to meet their obligations when due.
unwinding                               The process used to recalculate obligations in some net settlement systems where transfers between the accounts of participants are provisional until all of them have finally discharged their settlement obligations. If a particular participant fails to settle, some or all of the provisional transfers involving that participant are deleted from the system and the settlement obligations of the remaining participants are recalculated.
value date                              The day on which the payment, transfer instruction or other obligation is due and the associated funds and securities are typically available to the receiving participant.

[1] CPSS-IOSCO (2012), Principles for Financial Market Infrastructures, CPSS Publications No 101, Bank for International Settlements, April, available at <http://www.bis.org/publ/cpss101.htm>.
[2] A marked-up version of the SSF Standards, indicating where additions and alterations have been made to the text of the Principles, is available at <https://www.rba.gov.au/payments-and-infrastructure/financial-market-infrastructure/clearing-and-settlement-facilities/standards/201212-new-fss-ris>.
[3] A Glossary of Terms Used in Payments and Settlement Systems is available at <http://www.bis.org/publ/cpss00b.pdf>.