Basic terms

1) DvP - Delivery versus Payment – simultaneous transfer of securities and cash under securities related transactions;

2) DvD – Delivery versus Delivery – transfer of securities from the account of one contracting party to the account of the other contracting party for payment at the time of purchase of other securities, simultaneously with the transfer of such other securities;

3) FOP – Free of Payment – transfer of securities from one to another holder free of payment;

4) T (+1, +2, +3) – symbol of the number of business days after the trading day and the day of settlement (settlement cycle);

5) trading day is (T+0) – day of the conclusion of a security sales transaction;

6) securities – document (in the form of electronic recording) which gives certain rights to its holder;

7) issuer – a legal entity which issues securities;

8) sales agreement – a purchase-sale transaction concluded in organized market, between a buyer and a seller of securities;

9) investor – a person that invests cash assets in a transaction (for example, purchase of securities) for the purpose of making the profit;

10) custody bank – a bank that administers the securities accounts for customers’ account, and acts by orders received from customers;

11) clearing of securities – establishment of the obligations and receivables (claims) under securities and cash assets among the participants in the organized market with respect to securities related transactions;

12) bond – a debenture made out to person, with certain maturity, which may be issued by companies or the state;

13) chart of CSD (Central Securities Depository and Clearing House) cash accounts – a chart of accounts where are maintained FOREX and clearing dinar accounts of the members whose dinar accounts are kept with the National Bank of Serbia, and/or which are for Stock brokers maintained with the banks members of CSD;

14) chart of CSD securities accounts – a chart of accounts where records are kept of the issuers and holders of securities, the rights and obligations of such securities holders;

15) Guarantee Fund account – account of a CSD member used for risk elimination in the case of non-fulfillment of obligations by the CSD member;

16) settlement – meeting of obligations under the trading in securities, arising between and among the participants in the organized market;

17) stock exchange – a market institution located in a specifically determined place where standardized market material is traded in under strictly established trading rules;

18) Over-the-Counter market (OTC) – all purchase-sale activities in securities carried out off the stock exchange;

19) nominal value of a security – value shown on the face of a security (face value);

20) market value of a security – value of a security formed by trading in the organized market, and depends on the supply and demand;

21) CSD member – a stock broker, a bank authorized for broker-dealer operations, a custody bank, other bank and foreign legal entities performing clearing and settlement of securities;

22) CCP – Central Counter Party – a universal party to a transaction;

23) T - bills – Treasury bills of the Republic of Serbia – short-term debentures with certain maturity, issued by the Republic of Serbia.