Glossary

A B C D E F G H I L M N O P R S T V

DAYLIGHT EXPOSURE: The period in the day when one party to a trade has a temporary credit exposure to the other due to one side of the trade having settled before the other. It would normally mean that the loan had settled but the delivery of collateral would settle at a later time, although there would also be exposure if settlement happened in reverse order. The period extends from the point of settlement of the first side of the trade to the time of settlement of the other. It occurs because the two sides of the trade are not linked in many settlement systems or settlement of loan and collateral take place in different settlement systems, possibly in different time zones.
DAYS TO COVER: The number of days (in terms of average daily outright buying/selling turnover of the security) that it would take to cover the value on loan as of the date reported.
DELIVER-OUT REPO: "Standard" two-party repo, where the party receiving cash delivers bonds to the cash provider.
DELIVERY BY VALUE (DBV): A mechanism in some settlement systems (including CREST) whereby a member may borrow or lend cash overnight against collateral. The system automatically selects and delivers collateral securities meeting pre-determined criteria and to the value of the cash (plus a margin) from the account of the cash borrower to the account of the cash lender and reverses the transaction the following morning.
DELIVERY VS PAYMENT: The simultaneous delivery of securities against the payment of funds.
DIRECT LENDER: A lender that lends directly to a borrower rather than using an agent or intermediary and that has autonomy regarding all lending decisions. The lender may handle loan administration in house or may also use a third party.
DISTRIBUTIONS: Entitlements arising on securities such as dividends, interests and non-cash distributions such as bonus shares.
DIVIDEND DATE: The date upon which the issuer of the share pays the dividend to the owner (as at the ex-dividend date) of the security.
DIVIDEND EFFECT ADJUSTED: This adjustment smoothes out the unusual peaks of activity seen between the ex-dividend date and payment date. This process is only applied where specified on selected graphs.
DOMESTIC STOCK: Securities that are lent from a locally domiciled source.
DOUBLE COUNTING: Financing transactions include a proportion of trades executed by intermediaries. These transactions artificially inflate the overall value on loan and are, therefore, automatically removed prior to publication of the data. In brief, the process to exclude double counting removes transaction values where one participant is seen to lend and borrow the same security value from two other participants on the same day. The originating lender and end borrower values are retained to represent the true level of value on loan.
DOUBLE DIPPING: The illegal practice of simultaneously pledging or allocating the same collateral to more than one counterpart.
DRP: Dividend Reinvestment Plan.
DVP: Delivery versus payment, or the simultaneous delivery of securities against the payment of funds.