Acronyms - DTCC/media/Files/Downloads/Settlement-Asset-Se… · MGF Malagasy Franc MMK Kyat MNT...

Appendix:

Acronyms:

Acronyms Besides the three or four-letter acronyms for each PTS function, which are defined on page two of each function chapter, the following acronyms are used in this guide:

Abbreviation Term

ABS Asset-Backed Security

ADR American Depositary Receipt

CIL Cash-In-Lieu

CMO Collateralized Mortgage Obligation

CNS Continuous Net Settlement

COD Certificate On Demand

DPAL Dividend Position and Allocation History

DRP Dividend Reinvestment Program

DRS Direct Registration Service

FAST T Fast Automated Securities Transfer

FTWS Foreign Tax Withholding Service

IPO initial public offering

MMI Money Market Instrument

NDFS Next Day Funds

PDA Pending Delivery Account.

RMC Risk Management Controls

SDFS Same Day Funds

UIT Unit Investment Trust

VRDO Variable Rate Demand Obligation

WT Withdrawal by Transfer

Code Lists:

Activity Codes

Code Code Description

19 00 ID Deliveries


19 01 MMI Night Deliver Orders

26 00 Deliver Orders

26 01 MMI Deliver Orders

26 03 Repo Deliver Orders

26 04 Issuances

26 05 Stock Loan Deliver Orders

26 06 Stock Loan Return Deliver Orders

26 07 Interdepartment Reversals

26 08 IVORS Deliver Orders

26 31 MMI Repos

26 51 MMI Stock Loan Deliver Orders

26 61 MMI Stock Loan Return Deliver Orders

28 00 Maturity Presentments

28 01 Reorganization Presentments

47 00 Deliver Orders from an IPO Control Account to another IPO Control Account

48 00 Deliver Orders from an IPO Control Account to a Free Account Order

49 00 Deliver Orders from a Free Account to an IPO Control Account

52 00 Valued IPO Pledges

54 00 MMI Valued Pledges

55 00 Valued Releases

55 01 MMI Valued Releases

60 00 Income Presentments

61 00 Principal Presentments

70 00 Billing and Refunds

70 01 Participant Fund Contributions

70 02 Controllers Adjustments

70 03 NSCC Billing

78 00 Security Payment Orders

78 01 MMI Security Payment Orders

79 01 ACATS Cash Transfers

79 02 ACATS Deliver Orders

82 00 Premium Payment Orders

82 01 MMI Premium Payment Orders

84 00 Reorganizations

86 00 CMO Refactoring

87 00 Dividend Allocations

87 01 MBS Dividends


88 00 Redemptions

88 01 MBS Redemptions

89 00 Short Penalities

94 00 Yesterday's Suspense

95 00 Mutual Funds Transfers

95 01 SPP Funds Transfers

95 02 Settlement Funds Transfers

95 03 P/I Withdrawal Funds Transfers

96 00 Cross-Endorsement Funds Transfers

140 00 Fund Serv

141 00 Networking Dividends

250 00 Late P/I Allocations

Currency Codes


AAL Cayman Land Dollar

ADP Andorran Peseta

AED UAE Dirham

AFA Afghani

ALL Lek

ANG Netherlands Antillean Guilder

AON New Kwanza

ARA Austral

ATS Shilling

AUD Australian Dollar

AWG Aruban Guilder

BBD Barbados Dollar

BDT Taka

BEF Belgian Franc

BGL Lev

BHD Bahraini Dinar

BIF Burundi Franc

BMD Bermudian Dollar

BND Brunei Dollar

BOB Boliviano


BRE Cruziero

BSD Bahamian Dollar

BTN Ngultrum

BWP Pula

BZD Belize Dollar

CAD Canadian Dollar

CHF Swiss Franc

CLF Unidades de Fomento

CNY Yuan Renminbi

COP Colombian Peso

CRC Costa Rican Colon

CSK Koruna

CUP Cuban Peso

CVE Cape Verde Escudo

CYP Cyprus Pound

DEM Deutsche Mark

DJF Djibouti Franc

DKK Danish Krone

DOP Dominican Peso

DZD Algerian Dinar

ECS Sucre

EGP Egyptian Pound

ESB Convertible Peseta Accounts

FIM Markka

FJD Fiji Dollar

FKP Falkland Islands Pound

FRF French Franc

GBP Pound Sterling

GHC Cedi

GIP Gilbraltar Pound

GMD Dalasi

GNF Guinea Franc

GRD Drachma

GTQ Quetzal

GWP Guinea-Bissau Peso

GYD Guyana Dollar

HKD Hong Kong Dollar

HNL Lempira


HTG Gourde

HUF Forint

IDR Rupiah

IEP Irish Pound

ILS Shekel

INR Indian Rupee

IQD Iraqi Dinar

IRR Iranian Rial

ISK Iceland Krona

ITL Italian Lira

JMD Jamacian Dollar

JOD Jordinian Dinar

JPY Yen

KES Kenyan Shilling

KHR Riel

KMF Comoro Franc

KPW North Korean Won

KRW Won

KWD Kuwaiti Dinar

KYD Cayman Islands Dollar

LAK Kip

LBP Lebanese Pound

LKR Sri Lanka Rupee

LRD Liberian Dollar

LSL Loti

LUF Luxembourg Franc

LYD Libyan Dinar

MAD Moroccan Dirham

MGF Malagasy Franc

MMK Kyat

MNT Tugrik

MOP Pataca

MRO Ouguiya

MTL Maltese Lira

MUR Mauritius Rupee

MVR Rufiyaa

MWK Kwacha

MXP Mexican Peso


MYR Malaysian Ringgit

MZM Metical

NGN Naira

NIO Cordoba Oro

NLG Netherlands Guilder

NOK Norwegian Krone

NPR Nepalese Rupee

NZD New Zealand Dollar

OMR Rial Omani

PAB Balboa

PEN Nueva Sol

PGK Kina

PHP Philippine Peso

PKR Pakistan Rupee

PLZ Zloty

PTE Portuguese Excudo

PYG Guarini

QAR Qatari Rial

ROL Leu

RWF Rwanda Franc

SAR Saudi Riyal

SBD Soloman Islands Dollar

SCR Seychelles Rupee

SDP Sudanese Pound

SEK Swedish Krona

SGD Singapore Dollar

SHP St. Helena Pound

SLL Leone

SOS Somali Shilling

SRG Surinam Guilder

STD Dobra

SUR Rouble

SVC El Salavador Colon

SYP Syrian Pound

SZL Lilangeni

THB Baht

TND Tunisian Dinar

TOP Pa'Anga


TPE Timor Escudo

TRL Turkish Lira

TTD Trinidiad and Tobago Dollar

TWD New Taiwan Dollar

TZS Tanzania Shilling

UGX Uganda Shilling

UYP Uruguyan Peso

VEB Bolivar

VND Dong

VUV Vatu

WST Tala

XAF CFA Franc Beac

XAG Silver

XAU Gold

XBA European Composite Unit (EURCO)

XBB European Monetary Unit (EMU-6)

XBC Euro Unit of Account-9 (EUA-9)

XBD Euro Unit of Account-17 (EUA-17)

XCD East Int'l Monetary Fund (IMF)

XEU European Currency Unit (ECU)

XFO Gold Franc

XFU UIC-Franc

XOF CFA Franc Bceao

XFP CFP Franc

XPT Platinum

XXX Transitions Without Currency

YER Yemeni Rial

YUN Yugoslavian Dinar

ZAL Financial Rand

ZMK Kwacha

ZRZ Zaire

ZWD Zimbabwe Dollar

Function Codes



02 Stock Split

06 Stock Dividend

07 Cash on Increased Shares

08 Cash Dividend

09 Foreign Cash Div Unfavorable

11 Spinoffs, Ineligible

12 Spinoffs, Eligible

13 Bond Interest

14 Option, Div Setup

15 Option, Div to Stk

16 Option, Div 15 &17

17 Option, Div to Cash

18 Option, Div to Stock

19 Option, Div Fracs



23 Municipal Bond

25 Principal Payment

30 Div Reinvest Service

35 Tax Exempt Div Serv.

37 Foreign Cash Div Favorable

43 Special Distribution

44 Recapitalization

45 Liquidation

46 Sale of Assets

47 Redemption of Rights

48 DRP/TEDS

49 Capital Gains

Issue Types


0 Common/Ordinary Etc.

1 Preferred/Preference

2 Warrant/Right

3 Convertible Bond


4 Unit

5 Municipal$ Bond

6 Corp &Gov. Bond

7 Mutual Fund

8 Certificate

9 Foreign

A Market Index

B Equity/Index Option

C Contracts

D Curr/Int Rt/Dept Opt

E UNIT

F ADR

G Convertible Preferred

H U. S. Treasury Notes

I U. S. Treasury Bonds

J U. S. Treasury Bills

K Fed Home Loan Banks

L Fed Home Loan Mort.

M Fed Land Banks

N Fed Nat Mort Assn

O Fed Nat Mort Assn Pt

P Gov Nat Mort Assn

Q Special Stock

R Farm Home Loan Admin

S General Services Admin

T T12 Fed Land Banks

U 12 Fed Intl Cr Bank

V 13 Banks for Co-ops

W Intl Amer Dev Bank

X Intl Bank Recon &Dev

Y Export Import

Z Other Government

Market Codes



01 American Stock Exchange

02 New York Stock Exchange

03 Broker-to-Broker Trade

04 Boston Stock Exchange

05 Chicago Stock Exchange

06 Philadelphia-Baltimore-Washington

07 Option

09 Over the Counter

10 Principal

11 Syndicate

12 Special

13 Other

14 Average Price Trade

15 NYSE Basket Trade

16 Amex Basket Trade

18 CBOE Basket Trade

19 Cincinnati Stock Exchange

21 Toronto (Canada)

22 Montreal (Canada)

23 Vancouver (Canada)

24 Mexico City (Mexico)

31 Vienna (Austria)

32 Brussels (Belgium)

33 Copenhagen (Denmark)

34 European Economic Community

35 Helsinki (Finland)

36 Paris (France)

37 Frankfurt (Germany)

38 Dublin (Ireland)

39 Milan (Italy)

40 Luxembourg (Luxembourg)

41 Amsterdam (Netherlands)

42 Oslo (Norway)

43 Madrid (Spain)

44 Stockholm (Sweden)

45 Zurich (Switzerland)

46 Geneva (Switzerland)

47 London (United Kingdom)


51 Syndicate Directed Concession

52 Syndicate Over-Subscribed

53 Syndicate Directed/Over-Subscribed

71 Sydney (Australia)

72 Melbourne (Australia)

73 Hong Kong (Hong Kong)

74 Tokyo (Japan)

75 Osaka (Japan)

76 Kuala Lumpur (Malaysia)

77 Wellington (New Zealand)

78 Manila (Philippines)

79 Singapore (Singapore)

Reason Codes


S0 Mark to the Market/Stock Loan

S1 Mark to the Market/Stock Loan Reclaim

S2 Due Bill Redemptions

S3 Due Bill Redemptions Reclaim

S4 Mark to the Market/Fail

S5 Mark to the Market/Fail Reclaim

S6 Buy In/Pair Off

S7 Buy In/Pair Off Reclaim

S8 Fail Pair Off

S9 Fail Pair Off Reclaim

P0 Put

P1 Put Reclaim

P2 Call

P3 Call Reclaim

Reject Codes


Deposit Assignment/Transferee Requirements


Rejects

17 Assignment by TTE (s)/Exec/Admin (s)/Guard (s) Require signature Guarantee

14 Cede &Co. Assignment Missing/Illegible

35 Ceritficate (s) of Incumbency Required

22 Citizenship Certification Required

9 Erasure/Alteration Guarantee Required

52 Erasure/Alteration Requires Medalliuon Stamp

12 Execution Guarantee Required

55 Guarantee Manual Endorsement

4 Incorrect/Incomplete Stock Power

67 Medallion Stamp Is Not Legible

69 Medallion Stamp Is Wrong Color

11 One and the Same Guarantee Required-With Medallion Stamp

13 Partnership Certification Required

87 Re-guarantee Required

6 Release Power of Attorney Medallion Stamp

88 Release Power of Attorney Medallion Stamp

5 Signature Guarantee Missing

91 Signature Must Be Guaranteed With Medallion Stamp

94 Stock Power Incomplete

95 Stock/Bond Power Misplaced. Replace and Redeposit

97 Transfer Tax Stamp Required

27 Transfer Tax Waiver (Stamp) Required

81 Valid Medallion Guarantee Required

83 Value Exceeds Medallion Guarantees Surety Limit

Deposit Rejects

Legal Deposits

15 Affidavit of Domicile of Stockbroker at Time of Death

29 Birth/Death Certificate Authenticated by an Authorized Officer

38 Certified Copy of Certificate of Name Change/Merger Agree

43 Copy of Power of Attorney Certified With Signature Guarantee Medallion Stamp

45 Court Certified Copy of Court Order. Order Authorized Sale or Distribution

46 Court Certified- Dated Within 60 Days Evidencing Appointment of Fiduciary

48 Declaration of Transmission

59 Inheritance Tax Waiver

65 Legal- Date of Trust Required


19 Legal- Certificate of Appointment

21 Legal- Certify Trustee

18 Legal- Corporate Resolution Required/Dated Within Six (6) Months

20 Legal- Death Certificate Required

66 Legal- Legended Certificate

16 Legal- Opinion of Company Counsel

13 Partnership Certification Required

89 Restricted Certificate (s)

28 State Legislature Status for Custodial Account Omitted/Incorrect UTMA/ (State) or UGMA (State)

34 Trust Agreement Dated and Certified Within 90 Days of Receipt Required

Deposit Rejects

Corporate Actions

10 Exchange Item

33 Books Closed/Open

63 Issue is in Bankruptcy

64 Issue Marked for Deletion

68 Called Stocks/Bonds Presented to TA

Deposit Rejects

Endorsement Requirements

7 Endorsement Incomplete

8 Endorsement Missing

51 Endorsement by Registered Holder (s)

Deposit Rejects

Physical Discrepancies

23 Bearer- Missing/Mutilated Coupons

25 Wrong CUSIP Number Used on Deposit Ticket

30 Book Entry Only- No Physical Certificates Accepted

40 T/A Claims Non- Receipt of Line Item/SCL

74 Mixed Depositories- Redeposit Separately

75 Mixed Securities

84 Quantity Difference

Deposit Rejects

Stops/Investigations

26 Stop Transfer on Certificate (s)

36 Certificate (s) Escheated to State

37 Certificate (s) Reported Lost and Replaced

82 Pending Transfer- Securities Under Investigation

Deposit Transfer Agent Processing Requirement


Rejects

24 CUSIP Number is Not on TA File

44 Fractional Share Issuance Not Accepted by TA

49 Letter of Indemnity Required

77 New TA Has Incomplete Records on File

86 TA is Temporarily Out of Certificates

92 Signature Not on File

96 Transfer Agent Change

Deposit Reject

Other

50 Eligible in Bearer Form Only

53 Fiduciary Capacity Required

54 Frozen/Chilled Securities

79 Participant Request for Reject

99 Miscellaneous: Free Form Agent's Description Mandatory

Transfer Rejects

Withdrawal- By Transfer

1 Registration Requires Clarification

2 Date of Trust Required

3 Address Incomplet/Missing

20 Book Entry Only- No Physical Certificates Accepted

31 Type of Tenancy Missing/Not Acceptable

32 Certify Legal Given Name/Use of Initials

33 Books Closed/Open

39 Certified Tax ID Number Required

63 Issue is in Bankruptcy

64 Issue Marked for Deletion

68 Called Stocks/Bonds

70 Minimum Denomination Required

76 Incorrect Breakdown on W/T Request

77 New T/A Has Incomplete Records on File

79 Participant Request for Reject

80 Clarify Name of Trust

85 Registration Incomplete/Missing

86 T/A Temporarily Out of Certificates

99 Miscellaneous; Free Form Agent's Description Mandatory

Glossary List:

Glossary List

Glossary Term Abbreviation Definition

Asset-Backed Security

ABS

Access Coordinator An individual employee or agent of a participant organization, responsible for establishing and maintaining the identities and entitlements (such as function eligibility) of the organization's operators.

Accrual Period The period of time that asset-backed security trades settle with distribution.

Actual Coupon Rate For variable rate issues, the coupon rate applicable to that trade's black out period.

Actual Factor The factor applicable to a trade's black out period.

American Depositary Receipt

ADR

Amortized A loan in the process of liquidation via installment payments.

Assumed subscription price

A price determined by the agent to follow for payment pending notification of the final or actual price.

Basic subscription The exercise of rights entitling the holder to receive new underlying securities upon the surrendering of rights and payment of the subscription cost.

book-entry-only security

BEO An issue authorized for deposit at DTC in the form of one or more global certificates for each tranche of an issue. Ownership positions and transactions in each security are reflected in DTC's records and in the records of participating banks and brokers. Transaction confirmations and periodic account statements provided to investors identify securities the investor owns and report on activity in the investor's account.

Blanket Letter of Representations

BLOR An agreement accepted by DTC from municipal issuers in which the issuer agrees to comply with the requirements stated in the Operational Arrangements, as they may be amended from time to time. DTC requires an issuer to submit a BLOR only once for all its future municipal issues distributed through DTC.


Cash and Stock Merger

The exchange of one company's security/CUSIP for another company's security/CUSIP and cash at a preset rate.

Cash Merger The exchange of one company's security/CUSIP for cash at a preset rate.

Cash Redemption Transaction in which UIT units are redeemed at the Transfer Agent for monies. See also Redemption.

Chill A systemic way DTC can prohibit you from processing certain activities (e. g. , a valued delivery chill will prevent you from making valued deliveries from your account).

Cash-In-Lieu CIL

closing date The date on which the Underwriting Department will distribute an issue to the underwriter's DTC participant account for book-entry delivery and settlement upon notification by both the underwriter and the issuer that an issue has closed. Also referred to as the distribution date.

Collateral Any cash or securities in your account designated as Net Addition (NA).

Collateral Monitor The process whereby DTC will have sufficient collateral in your account to liquidate in the event you fail to pay your settlement obligation, or become insolvent.

Collateral Value the market value of a security less the applicable DTC haircut.

Component securities

Two or more securities that comprise a unit.

Computer-to-Computer (CCF/CCF II)

A batch transmission system for input/output based on various protocols between your mainframe and DTC's.

Collateralized Mortgage Obligation

CMO

Continuous Net Settlement

CNS The system used by the National Securities Clearing Corporation (NSCC) to settle NYSE, AMEX and NASDAQ trades.

Certificate On Demand

COD

Conditional Tender A holder placing conditions on the acceptance of its tender by instructing that a minimum number of shares be accepted in the event of a proration.


Contra-CUSIP The CUSIP used to indicate your tendered position (representing instructions submitted by Participants to surrender securities).

Corporate Action Any mandatory action not categorized as one of the above (e. g. , bankruptcy).

CUSIP The unique nine-digit identifier of an issue.

CUSIP number The identification number created by the American Banking Association's Committee on Uniform Security Identification Procedures (CUSIP) to uniquely identify issuers and issues of securities and financial instruments. The CUSIP number consists of nine digits; the first six digits identify the issuer and have been assigned to issuers in alphabetic sequence, and the next two characters (alphabetic or numeric) identify the issue. The ninth digit is the check digit.

data distribution box

DD A receptacle located in the central delivery area of DTC used for distributing hard-copy reports and notices to participants.

declaration date The date on which the issuer declares the income distribution, the record date, and the payable date.

Delay period The period where cash flow from one accrual period is not available or passed through until the next period. This is also known as the blackout period.

Deliverer The party that delivers the security (also known as the seller).

Deliver Order The term used to define a book-entry movement of shares of a particular security between two DTC Participants.

Drops Transactions that don't complete due to insufficient position, Risk Management Controls, etc.

Dividend Position and Allocation History

DPAL

Dividend Reinvestment Program

DRP

Direct Registration Service

DRS

DTC Cover Protect Expiration Date

The last day you can cover your protects and surrender rights through DTC pursuant to Notices of Guaranteed


Delivery. This date may be earlier than the date established for this purpose by the offeror.

DTC Expiration Date

The last day you can accept an offer through DTC. This day may be earlier than the actual expiration date established by the offeror.

DTC Sell Expiration Date

The last day you can surrender rights to the agent to sell and receive the sale proceeds through DTC.

Due Bill A check equivalent to the distribution amount, or an IOU entitling the receiver to the distribution.

Due Bill Period The period of time during which a trade includes the current distribution, usually from the record date+1 up to the ex-date+2.

entitlement date The last date on which trades for a specific security settle with the income distribution. This is also known as the settlement date.

Estimated factor A value substituted for the true factor when the true factor is not yet public. This is usually the last known factor, and is needed to determine the dollar value of a trade that takes place during the delay period.

Exchange Offer An offer to surrendered securities in exchange for securities, or a combination of securities and cash.

ex-distribution The first date on which a security trades without the income distribution. Also known as the ex-dividend or the ex date

Ex-Dividend A trade that is settling without the distribution.

Ex-Date The first date on which a security trades without the income distribution. Normally, the ex-date is two business days prior to record date.

Expiration Date The date that rights expire (become worthless).

Exposure The difference between the value of the securities being surrendered and the value of the entitlement to be received.

Fast Automated Securities Transfer

FAST T An arrangement between DTC and transfer agents to eliminate the movement of securities certificates. By signing the Balance Certificate Agreement with DTC, agents agree to maintain DTC-eligible inventory in the form of jumbo certificates registered in


the name of DTC's nominee name, Cede &Co. DTC and FAST agents electronically reconcile the results of participants daily deposit and withdrawal activities.

flipping The sale of shares of a security in the secondary market during the stabilization period or penalty-bid period.

Free Account General DTC Participant Account.

Foreign Tax Withholding Service

FTWS

Information Agent An agent retained by the offeror to distribute the offering material and answer shareholder questions. Also referred to as Proxy/Soliciting Agent.

Initial Distribution The delivery of shares of a new issue from the Lead Manager and Syndicate Members to their customers. Shares are considered Initial Distribution shares until they are sold on the secondary market.

In-Kind Redemption

Transaction in which UIT units are redeemed at the Transfer Agent for securities. See also Redemption.

Interim Period DTC's term for the Due Bill Period.

initial public offering

IPO A corporation's first offering of stock to the public. In an IPO, a corporation must comply with registration requirements of the Securities and Exchange Commission (SEC).

IVDB PTS function that allows TAs to enter a CUSIP into the IVORS standing instructions database, and allows Sponsors to update the standing instructions for a CUSIP.

IVIQ PTS inquiry function which allows Participants, Sponsors and TAs to view the status of IVORS transactions.

IVOR PTS function which allows Participants to enter redemption requests.

IVORS DTC Product that allows a UIT holder to surrender whole and fractional units for value via book-entry.

IVRS PTS function which allows Sponsors to enter and modify settlement information and cancel IVORS transactions.

IVRT T PTS function which allows TAs to enter and modify settlement information and cancel IVORS transactions.


Latest Coupon Rate For variable rate issues, the last known coupon rate received after the first adjustment

lead manager The institution that organizes and leads a syndicate of underwriters in purchasing and distributing shares of an offering to investors. Also known as lead underwriter.

Letter of Representations

LOR An agreement that contains certain representations that must be made to DTC by the issuer and others before various issue types (for example, book-entry-only issues, Rule 144A issues, and Regulation S issues) can be made eligible for DTC's services.

Letter of Transmittal

The document signed by the security holder i which it agrees to tender its securities pursuant to the terms of the offer. It contains information about the certificates and quantity being tendered, as well as where and to whom the payment should be made.

Liquidation The dismantling of a company with the distribution of securities and/or cash to creditors first (bondholders). A new contra-CUSIP may be assigned to those holders whose original CUSIP was deleted upon receiving the initial distribution proceeds. That new contra-CUSIP will be used for any future disbursements.

Long Allocations Deliveries from NSCC's Omnibus Account#888 as a result of NSCC's Continuous Net Settlement (CNS) system.

Largest Provisional Net Credit

LPNC A control that ensures that reversing a failed Money Market Instrument (MMI) issue transaction does not cause your Risk Management Controls to be overridden.

Minimum Amount MA DTC's classification for securities in your account that are not considered collateral.

Mandatory Tender with retainment

The exchange of bonds for cash; however, holders can elect to keep, or retain, their bonds.

Market Value The prior day's closing price of a security for security valuation purposes.

Memo Segregation An inventory control mechanism that allows you to protect fully-paid-for securities in your General Free or IPO Control account.

Merger With A merger that provides the security


Election(s) holder the option of electing different entitlements, usually cash, stock, or a combination of both.

Money Market Instrument

MMI Debt securities such as commercial paper or medium-term notes.

Mortgage-Backed/Monthly Put

An early redemption feature that allows the holder to elect to sell the bonds back to the issuer on a monthly basis according to specified priorities.

Net Additions NA DTC's classification for securities in your account that are considered collateral.

Name Change The changing of a company name. The CUSIP for the security may or may not change as well.

Night Deliver Order NDO A DO input on the day prior to settlement. A reduced rate is charged for NDO transactions.

Net Debit Cap A limit to the settlement net debit you can incur at any point during the processing day.

NIVR PTS function which allows Participants to enter redemption requests for night processing. The Transaction Date for these requests is the next business day.

Odd Lot Preference A feature that allows the offeror to accept odd lot tenders in full, without proration.

offering documents A formal written offer to sell securities that sets forth the plan for the proposed business enterprise (or the facts concerning an existing one) that an investor needs in order to make an informed investment decision.

Offeror The party making the offer.

Omnibus Account 888

DTC account for CNS transactions.

operational arrangements

The requirements for an issue to become eligible for DTC services that incorporates standards for income, reorganization, and redemption payments ("Principal and Income Payments"), adopting the guidelines set by the U. S. Working Committee Group of Thirty (G-30) Clearance and the Settlement Project Same-Day Funds Task Force (P Task Force).

Operator An individual employee or agent of a participant organization who is authorized in accordance with the rules and procedures of DTC to access DTC's


applications via the system used by that organization.

Optional Dividend A dividend for which the shareholder has several options regarding how it will receive distribution (e. g. , cash, additional shares, or a combination).

Optional repayment A feature of a bond that entitles the holder to elect to surrender the bond for cash during a predetermined time period with a predetermined payable date.

Oversubscription A provision in a rights offer that allows a holder who fully exercises the basic subscription to subscribe to one of more additional shares, subject to the availability of additional shares.

Participant Organization

A corporation or similar concern that has completed the requisite agreements with DTC and is a member, customer, or other user (such as a transfer agent) of DTC systems and applications.

Participant Organization Section

A participant organization can elect to have several separate organization sections, each with its own access coordinator. The access coordinator for one section will be responsible for password set-up and maintenance for that section only, and will not be able to request updates (such as resets or resumptions) to passwords for the operators in a different section.

payable date The date on which the income is paid to security holders.

Payment Cash and/or securities in return for tendered securities.

Pending Delivery Account.

PDA

penalty-bid period Established time period in which the lead manager has the right to penalize syndicate members for their customers' flipping activity.

Payment Order PO A transaction in which a Participant charges another Participant for changes in value for outstanding stock loans or option contract premiums.

private placement The sale of securities directly to private persons, institutional investors, or both outside a public offering. Unlike a public offering, a private placement does not have to be registered with the SEC.

Proration 1) The percentage used to allocate


oversubscription of rights.

2) The percentage of exchanged or tendered securities accepted based on the terms of the offer.

Protect/Notice of Guaranteed Delivery

A notice that allows holders who do not have their securities readily available to accept a tender or rights offer by the expiration date and deliver the securities within the period prescribed in the offer.

Protect Period The period after the expiration of an offer during which securities may still be tendered (pursuant to a Notice of Guaranteed Delivery or other required documents submitted to the Tender Agent prior to the expiration of the offer).

Receiver Authorized Delivery

RAD A control mechanism that allows you to review transactions prior to processing. It limits the exposure of misdirected or erroneously entered DOs, POs and Pledges.

Receiver The party that receives the security (also known as the buyer).

Reclaim The return of a deliver order or payment order received by a Participant.

Reclamation The return of a deliver order or payment order received by a Participant.

record date The date on which the holder of a security must be registered on the books of the issuer in order to receive the income distribution on the payable date.

Redemption Transaction in which a UIT holder surrenders units to the Transfer Agent for value. See also Cash Redemption and In-Kind Redemption.

Registered Holder The party that is on the books of the issuer as owning the security.

Relinquishment A feature of a bond that allows you to elect to give up your "optional repayment" right. This provision is often available for securities on which you pay a fee for the repayment provision. You receive a new non-option bond bearing the fixed rate interest payment from which the put fee would otherwise be deducted.

Reverse Split The exchange of a company's security/CUSIP for the same company's


new security/new CUSIP at a preset rate. This reduces the number of shares outstanding.

Risk Management Controls

RMC The controls, primarily net debit cap and collateral, that are used to provide protection to all DTC Participants against the inability of one or more Participants to settle their net settlement obligation.

Round-up A provision that permits a record date owner of the underlying security to roundup the quantity of rights the owner would otherwise receive in the rights distribution, to an amount that allows the owner to purchase one additional share in lieu of a fractional share. This is exercised between the record date and the distribution date of the rights distribution. In lieu of a round-up privilege, the terms of the rights offer may provide a step-up privilege.

RRGIVOR01 Account

A New DTC Seg Account, created to temporarily hold a Participant's UIT position for pending IVORS transactions.

Receive Versus Payment

RVP NA A sub-counter of your NA position that indicates how much of your NA position was received versus payment during the current day.

Sale to Sponsor Transaction in which a UIT holder's units are bought back by the UIT's Sponsor.

Same Day Funds Settlement system

SDFS A service of DTC for the book-entry settlement of securities delivered against payment in Fed Funds.

Sealed Bid Tender Offer

An offer allowing securities owners to choose the price at which they are willing to tender their securities. This is submitted in a sealed bid and sometimes must be within limits prescribed by the offeror. The offeror normally reserves the right to accept or reject any or all tenders.

Separation date The date the components of a unit can be traded separately.

settlement date The date on which the trade settles, usually three business days after the trade date.

Settlement Progress Payments

An intraday funds transfer sent via Fedwire to your DTC Participant account.

Short Covers Deliveries to NSCC's Omnibus


Account#888 as a result of NSCC's Continuous Net Settlement (CNS) system.

Sponsor The issuer of a UIT. The Sponsor can modify standing instructions, enter and modify settlement information for transactions originated by Participants and cancel Participant's transactions.

stabilization period The duration of time immediately after the closing of an issue during which the lead manager may purchase securities in the open market in order to stop a decline in the price of the securities.

Step-up A provision in an offer that permits you, when you exercise your basic subscription, to subscribe to one additional share of the underlying security in lieu of a fractional share.

Stock Merger The exchange of one company's security/CUSIP for another company's security/CUSIP or securities at a preset rate.

Stock Split A stock distribution usually of 25% or more of what the shareholder owns. It usually has an ex-date of the first business day after the payable date.

Subscription price The cost to subscribe to one share of the underlying security.

Subscription rate The number of rights that must be exercised to subscribe to one share of the underlying security.

syndicate A group of investment banks assembled by a lead manager to underwrite a new issue. Also known as a selling group.

Transfer Agent TA Usually a commercial bank that acts as a "Trustee" for the Sponsor. The TA creates an IVORS database record for UIT CUSIPs. It can also enter and modify settlement information for the transactions originated by Participants, and cancel Participants' transactions.

Target Security The security that is the subject of a Voluntary Offering.

Tender Agent The agent authorized by the offeror to act on its behalf to receive acceptance documents and securities that are the subject of the offer, and make distributions of payments.

Tender Offer or Invitation to Tender

An offer to surrender securities for cash.

Trade Coupon For variable rate issues, the coupon rate used to consummate the trade.


Trade date The date the trade was executed.

Trade Factor The factor applicable to a trade's black out period.

Transaction Date The date a transaction is entered into the system.

True factor The actual amount of principal remaining on the mortgages underlying the CMO/ABS. This is also known as the principal factor, and is used to compute the amortized value.

Unit Investment Trust

UIT An investment vehicle representing a portfolio of securities such as corporate, municipal, or government bonds, mortgage-backed securities, preferred or common stock. Unit holders receive both principal and income payments in proportion to the number of units they own.

Unvalued Transaction

Unvalued security additions that do not carry related payment obligation with the receipt of securities. They include:

Deposits

Free release of pledged securities

Receipt of a free DO

Releases of segregated securities

Free pledges.

Unwinding The process of reversing transactions back to the original deliverers.

Variable Rate Demand Obligation

VRDO

Withdrawal by Transfer

WT

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