Glossary
Every term between trade and settlement.
The ABOR: custodian-confirmed settled positions used as the authoritative basis for NAV calculation, financial statements, and regulatory reporting.
The software layer that enables broker-dealers to meet SEC and FINRA regulatory obligations — books and records, net capital, supervisory controls, and audit trail — through automation rather than manual processes.
The identification and control of risk that a counterparty fails to settle a trade, exposing the surviving party to replacement cost or principal loss.
The daily comparison of a firm's internal position records against the custodian's statement of holdings, identifying breaks for investigation and regulatory documentation.
A settlement mechanism (DvP) that links the transfer of securities to the simultaneous transfer of payment, ensuring neither leg completes without the other.
The requirement for broker-dealers to apply Rules 17a-3 and 17a-4 to digital asset securities, linking on-chain transaction data to the account-level records regulators require.
The use of distributed ledger technology as books and records infrastructure for financial institutions, subject to the same substantive standards as traditional recordkeeping systems.
A trade that does not settle on its contractual settlement date because one party cannot deliver the required securities or cash, triggering penalties and buy-in procedures.
The daily process of comparing the forward-looking investment book of record (IBOR) against the custodian-confirmed accounting book of record (ABOR) to identify and resolve position differences arising from the settlement cycle.