Glossary

Settlement Before Exchange (SBE) Systems

Settlement Before Exchange systems use arrangements where participants must settle file batch totals before the files themselves may be exchanged

Stale-dated

An item dated more than six (6) months prior to presentment for payment.

STP

Straight-Through-Processing – the process of transmitting and reconciling a payment in an automated fashion, such that no human intervention is required.

System Operator

An entity that controls the functioning of a system including its operating rules, policies and infrastructure. The entity may perform some or all of the functions or rely on a third party to perform some functions.

System Owner

An entity that has the authority to assert certain rights and responsibilities in relation to a system, such as the right to develop, modify, operate and maintain the system or to introduce, modify, or discontinue a particular service or function.

System risk

A disruption to the payments ecosystem that has a material impact on ecosystem service providers or end users as a group.

System-wide risk

A disruption to the payments ecosystem large enough to have a noticeable impact on GDP.

Systemic risk

The failure of the payments ecosystem to ultimately settle on the books of the central bank.

Systemically important payments systems (SIPS)

Payment structures where a shock, disruption or failure could have serious and widespread impacts on the financial system and the economy.