Systems and technology
Here you can find a list of definitions for terms associated with systems and technology. These terms are listed alphabetically, alternatively you can use the find facility within your internet browser (by pressing control + F simultaneously) to search for terms within this page.
Access Management
The guidelines regulating system access and passwords usage. Access management is a key component of any IT security policy and is an important aspect of risk management in treasury.
Accredited Standards Committee (ASC X12)
A non-profit body, the Accredited Standards Committee has been chartered by the American National Standards Institute to develop, maintain, interpret, publish and promote the proper use of American National and UN/EDIFACT International Electronic Data Interchange Standards.
ACK
The acknowledgment message sent by SWIFT signifying that a message has been successfully received and accepted for further transmission to a specified addressee.
ANSI X12 Standard
The domestic US EDI Standard developed by the American National Standards Institute (ANSI).
API
See application programming interface.
Application Programming Interface (API)
A set of autonomous functions that allow software applications to send several instructions to another software application in one single message thereby facilitating straight through processing.
Application Service Provider (ASP)
A third-party provider of software-based application services via remote browser-based access. ASPs allow organisations to outsource some or all of their treasury services.
ASC X12
See Accredited Standards Committee.
ASP
See application service provider.
Authentication
Security process that allows a receiver to determine the identity of the sender and the validity of a message and its transmission method.
Back Office System
General term that refers to any system that is used to automate back office processes such as settlements, confirmation and reconciliation. See front office system.
Bank Administration Institute (BAI)
A USA-based institution that defines and publishes common balance reporting codes for the US marketplace.
Bloomberg
An online provider of real-time market price, data and information. See market information services, Reuters.
Bureau Service Provider
A company specialising in the provision of corporate outsourcing services ranging from payroll to treasury services.
Cash Management System
Software package that facilitates the management of an organisation's cash balances, cash flow and short-term liquidity.
Confidentiality
Confidentiality is an important aspect in all communications emanating from treasury. This is frequently ensured by the use of encryption and decryption hardware and/or software.
Counterparty Management System
Any system that facilitates the management of counterparty risk by integrating and automating all counterparty information including credit related data.
Cryptographic Keys
Security protocols using cryptography. Keys can be symmetric or asymmetric. See PKI.
Data Integrity
The accuracy of automated data and its conformity to its expected value, especially after being transmitted or processed.
Data Interchange Standards Association (DISA)
A non-profit organisation that aims to promote the use of electronic commerce standards by offering operational and other support to the development of ASC X12 and UN/EDIFACT standards.
Dealing System
A software package that allows partial or total automation of financial market transactions. Dealing systems normally have external links to bank and broker systems and internally to the treasury management system and back office system. Dealing systems can be used for foreign exchange, securities (including mutual funds) and commodities transactions.
Decryption
The hardware and/or software that enables the interpretation of an encrypted/scrambled message. See confidentiality, decryption.
Digital Signature
The electronic equivalent of a handwritten signature, digital signatures can authenticate the identity of sender of the message or the signer of the document as well as ensure that the integrity of the content of the message in the sent document has not been interfered with during the transmission process.
DISA
See Data Interchange Standards Association.
Disaster Recovery
The recovery of the organisation to operational activity including the recovery of all critical business systems after a disaster effects the organization, i.e. fire, earthquake, bomb, etc. See disaster recovery plan.
Disaster Recovery Plan
This is a developed and tested plan to ensure that business continuity continues in the case of a disaster. All IT systems which are critical to the successful operation of the organisation should be included in a disaster recovery plan. The plan should specify the actions that should be taken if part or the whole of the IT system is rendered inoperative. The plan should be founded in a risk analysis of the potential threats that could be encountered and the means available to continue operation. The disaster recovery procedures should be layered to tackle the different levels of problem that might occur.
EAI
See enterprise application integration.
EBP
See electronic bill presentment and payment.
EBS
See electronic banking system.
ebXML
See electronic business XML.
EDI
See electronic data interchange.
EDIFACT Standards
See UN/EDIFACT Standards.
EIPP
See electronic invoice presentment and payment.
Electronic Banking
A general term that refers to any form of banking that is effected remotely by electronic means. This can include banking by telephone (either fixed or mobile), PC banking or internet banking. In a corporate context, it generally refers to banking using electronic banking systems.
Electronic Banking System (EBS)
Any type of software package that is generally, but not necessarily, provided by a bank that allows the customer to link into the bank system, check outstanding balances, generate balance reports and initiate transactions. Electronic banking systems can be either workstation- or browser-based.
Electronic Bill Presentment and Payment (EBPP)
The methods and processes that allow invoices (bills) to be created, sent and paid via the internet.
Electronic Business XML (ebXML)
A modular suite of XML-based specifications aimed at enabling organisations to conduct business via the internet regardless of their size or geographical location. ebXML is jointly developed by the Organization for the Advancement of Structured Information Standards (OASIS) and the UN/CEFACT agency.
Electronic Commerce
Is defined by the UN/CEFACT as any business that is effected electronically. This includes the sharing of standardised unstructured or structured business information by any electronic means (such as electronic mail or messaging, internet technology, electronic bulletin boards, smart cards, electronic funds transfers, electronic data interchange, and automatic data capture technology) among suppliers, customers, governmental bodies and other partners in order to conduct and execute transactions in business, administrative and consumer activities.
Electronic Data Interchange (EDI)
The electronic exchange of data relating to a number of standard message categories, such as orders, invoices, customs documents, remittance advices and payments between or within commercial entities (including their agents or intermediaries) and/or public administrations, in a standard format. EDI messages are messages sent in structured data formats that can be processed by computers. This means that data can be transferred without them having to be re-keyed. This data is sent through public data transmission networks or banking systems channels. Any movement of funds initiated by EDI is reflected in payment instructions flowing through the banking system. EDIFACT, a United Nations body, has established standards for electronic data interchange. In addition, there are a number of national EDI standards, the most important being the ANSI standards.
Electronic Funds Transfer System
A software system, provided by a bank that enables companies/organisations to process incoming and outgoing payments electronically.
Electronic Invoice Presentment and Payment (EIPP)
The methods and processes that allow invoices (bills) to be created, sent, received, processed and paid via the internet. See electronic bill presentment and payment (EBPP).
Encipherment
See encryption.
Encryption
A process whereby a message is electronically scrambled so that only parties that have compatible decryption hardware and/or software can interpret the message. Sometimes referred to as encipherment. See confidentiality.
Enterprise Application Integration (EAI)
Generic term referring to any process or programme that aims to integrate, streamline and upgrade all existing applications and databases in a company.
Enterprise Resource Planning (ERP)
Company-wide software module that automates and integrates all functions of a business, including support functions such as human resources, thereby allowing a company to better identify, plan and manage its resources. ERP is particularly prevalent in the manufacturing industry.
ERP
See enterprise resource planning.
eXtensible Business Reporting Language (XBRL)
Developed by an international not-for-profit consortium, XBRL is an open and royalty-free XML-based reporting standard that facilitates the creation, exchange and comparison of business-related reporting information.
eXtensible Markup Language (XML)
A meta-language for web-based data that enables inter-application data transmission, validation and interpretation. The use of XML facilitates STP (straight through processing). XML is a simplified subset of the standard generalised markup language (SGML).
Extranet
A wide area network (WAN) in which two or more organisations share information using internet protocols with access limited to the participants.
FEDI
See financial EDI.
Financial EDI (FEDI)
The electronic exchange of financial data in a standard format between business partners. See electronic data interchange (EDI).
Financial Information eXchange Protocol (FIX)
A messaging standard aimed to facilitate the real-time electronic exchange of securities transactions.
Financial Products Markup Language (FMpL)
An XML based information exchange standard for electronic dealing and processing of financial derivatives instruments.
FIX
See financial information eXchange protocol.
FMpL
See financial products markup language.
Front Office System
Generic term that refers to any system that allows automation of front office dealing processes, particularly dealing. See back office system.
HTML
See hyper-text markup language.
Hyper-Text Markup Language (HTML)
A subset of SGML, hyper-text markup language functions as the basic meta-language for the internet.
IDL
See interactive data language.
IFX
See interactive financial eXchange forum.
Integrity
Relates to the completeness and accuracy of data stored in a computer, especially after it has been manipulated in some way. See data integrity.
Interactive Data Language
A commercial language that allows numerical analysis and permits visualisation of data.
Interactive Financial eXchange Forum (IFX)
Established by the world's leading financial service and technology providers, IFX aims to design a standard XML-based financial message protocol.
Interface
In a treasury system context, refers to any automated link established between different systems. The more interfaces that can be established between related application processes, the greater the STP potential.
International Standards Team (IST)
An informal grouping of the major payment standards developers set up to co-ordinate the various XML standard initiatives. IST aims to develop a single core payment XML kernel that can be used globally by both companies and banks.
Internet
A worldwide wide area network (WAN) to which anyone with the appropriate hardware, software, and communication links has access.
Internet Protocol (IP)
The standardised method used to transmit information via the internet. With IP, messages are divided into packets that are sent individually to the delivery address using interconnecting computers. Upon delivery, the data packages are re-assembled using the transmission control protocol (TCP).
Intranet
A private network based on internet protocols, but designed for information management within a company or organisation. Its uses include such services as document distribution, software distribution, access to corporate databases, and use of corporate applications. An intranet is so called because it looks like a world wide web site and is based on the same technologies, yet it is strictly internal to the organisation. Some intranets also offer access to the internet, but such connections are directed through a firewall that protects the internal network from the external web.
IP-Address (Internet Protocol Address)
A 32-bit (4-byte) binary number that uniquely identifies a host (computer) connected to the internet to other internet hosts, for the purposes of communication through the transfer of packets. An IP address is expressed in 'dotted quad' format, consisting of the decimal values of its 4 bytes, separated with periods; for example, 126.1.0.1. The first 1, 2, or 3 bytes of the IP address identify to which network the host is connected; the remaining bits identify the host itself. The 32 bits of all 4 bytes together can signify almost 232, or roughly 4 billion hosts.
ISDN (Integrated Services Digital Network)
An international communications standard for voice, video and data over digital and normal telephone wires.
IST
See international standards team.
LAN
See local area network.
Local Area Network (LAN)
Computers and other devices dispersed over a relatively limited area, commonly within one building, and connected by a communications link that enables any device to interact with any other on the network. LANs commonly include PCs and shared resources such as laser printers and large hard disks. The devices on a LAN are known as nodes, and the nodes are connected by cables through which messages are transmitted.
MAC
See message authentication code.
MA-CUG
See member administrated closed user group.
Market Data Definition Language
A XML-based format developed to facilitate the interchange of financial market data.
Member Administrated Closed User Group (MA-CUG)
A secure intranet established between a SWIFT member bank and its corporate customers using the private SWIFT network.
Message Authentication Code (MAC)
A unique sequence/code of digits generated by a mathematical combination of a message's cryptographic key and a message's content which allows message authentication and integrity verification.
Message Standards
Standards used in the electronic transmission on which most message types are based. Among the most widely used international standard messages are SWIFT messages as well as the UN/EDIFACT standards. In addition, some countries have domestic message standards of which the most important one is the USA-based ANSI X12 standard for financial EDI.
Middleware
Software that connects or acts as intermediary between two or more different software programs.
Non-repudiation
Part of the security process that establishes that a message has effectively been sent and received.
OAG
See open application group.
OASIS
See Organization for the Advancement of Structured Information Standards.
Open Application Group (OAG/OAGi)
A non-profit consortium that promotes best practices and processes based on XML content for e-business and application integration.
Organisation for the Advancement of Structured Information Standards (OASIS)
Founded in 1993, OASIS is a global non-profit consortium that seeks to encourage the development, convergence, and adoption of e-business standards. Together with UN/CEFACT, it focuses in particular on the development and promotion of ebXML Standards.
Payment Milestone Programme (PMP)
An initiative by the international non-profit consortium RosettaNet to automate accounts receivable reconciliation through the use of XML technology.
PKI
See public key infrastructure.
PMP
See payment milestone programme.
Portal
A website that acts as a gateway to a wide range of web-based services.
Public Key Infrastructure (PKI)
The system used to verify, register and verify the identity of the users of a security application. The system is based on asymmetric cryptographic keys: one of the keys is in the public domain (i.e. known to all users); the other key is private to the originator who uses it to generate a digital signature which can be verified by the recipient using the public key. See cryptographic keys.
RDBMS
See relational database.
Relational Database
A database or database management system that stores information in tables - rows and columns of data - and conducts searches by using data in specified columns of one table to find additional data in another table. In a relational database, the rows of a table represent records and collections of information about separate items and the columns represent fields. In conducting searches, a relational database matches information from a field in one table with information in a corresponding field of another table to produce the combined requested data from two or more tables. For example, if one table contains the fields counterparty ID, deal ID, deal amount, deal currency and another contains the fields counterparty ID, counterpart SWIFT details, a relational database can match the counterparty ID fields in the two tables to find such information as the SWIFT details for all deals. In other words, a relational database uses matching values in two tables to relate information in one to information in the other.
Reuters
An online provider of real-time market price, data and information. See Bloomberg and market information service.
RN
See RosettaNet.
RosettaNet (RN)
A non-profit organisation founded by a number of major technology companies in order to improve supply chain management, RosettaNet aims to set industry-wide, open e-business process standards that form a common e-business language and allow supply chain partners to align their respective processes regardless of their location or industry. See Payment Milestone Programme (PMP).
Secured Socket Layer (SSL)
A security protocol that allows encrypted files to be sent electronically via the internet by using a private key.
SGML
See Standard Generalised Markup Language.
Standard Generalised Markup Language (SGML)
A standard meta-language that allows specification of a document markup language or tag set such as XML or HTML.
STP
See straight through processing.
Straight Through Processing (STP)
The end-to-end processing of automated data without manual intervention. See XML
SSL
See secured socket layer.
SWIFT Address
See bank identifier code.
SWIFT FIN
A store and forward messaging service offered by SWIFT that allows the exchange of financial data between financial institutions.
SWIFT Messages
Standardised message types developed by SWIFT covering the following categories:
- Category 1 standards (customer payments and cheques);
- Category 2 standards (financial institutions transfers);
- Category 3 standards (treasury markets, foreign exchange, money markets and derivatives);
- Category 4 standards (collections and cash letters);
- Category 5 standards (securities markets);
- Category 6 standards (treasury markets, syndication and precious metals);
- Category 7 standards (documentary credit and guarantees);
- Category 8 standards (travellers cheques);
- Category 9 standards (cash management and customer status);
- and Category n standards (common messages).
SWIFT Net
The internet protocol (IP)-based communications network used by SWIFT to transmit its messages.
TCP
See transmission control protocol.
TMIS/TMS
See treasury management information system/treasury management system.
Transmission Control Protocol (TCP)
Method that enables the reconstruction upon delivery of messages that have been sent via the internet protocol transmission method.
Treasury Management Information System (TMIS)/Treasury Management System (TMS)
A configuration of hardware, software that is linked to internal and external information sources that allow an organisation's treasury to collect all the necessary financial information regarding the organisation in a uniform format. TMIS/TMS allows the automation of a variety of treasury tasks from routine calculations,to transaction initiation. It also greatly facilitates analysis, forecasting of treasury and risk management. It contributes to greater STP, particularly if it is linked to various front and back office applications or integrated into an ERP solution.
Treasury Workstation
A personal computer that is fitted with a software package capable of collecting and collating reporting information, which can be on a next-day, end-of-day or intraday basis, from both internal and external sources, which can then be analysed for decision-making purposes. In most cases, the software also offers some transaction initiation capability.
Treasury Workstation Integration Standards (TWIST)
An initiative by the major treasury service providers that aims to develop common XML-based standards for financial market participant communications so as to facilitate straight through processing (STP).
TWIST
See treasury workstation integration standards.
UN/CEFACT
See United Nations Centre for Trade Facilitation and Electronic Business.
UN/EDIFACT Standards
United Nations Rules for EDI for Administration, Commerce and Transport. UN/EDIFACT comprises a set of internationally agreed-upon standards, directories, and guidelines for the electronic interchange of structured data related to trade.
Value-Added Network (VAN)
A private network provider that offers various additional services to users.
VAN
See value-added network.
Virtual Private Network (VPN)
Method whereby a public telecommunications infrastructure such as the internet is used to offer remote users access to an organisation's network while safeguarding the privacy and security of the transmitted messages.
VPN
See virtual private network.
WAN
See wide area network.
WAP
See wireless application protocol.
Wide Area Network (WAN)
A network that connects computers and LANs within a wide geographical area.
Wireless Application Protocol (WAP)
Communication protocols for wireless appliances (such as mobile phones) which facilitate access to internet-based services.
World Wide Web Consortium (W3C)
A worldwide non-profit consortium whose mission is to bring the World Wide Web to its full potential by developing common protocols that promote its evolution and ensure its interoperability.
XBRL
A worldwide not-for-profit consortium regrouping all types of participants in the financial supply chain ranging from companies to regulatory agencies, that has been specifically set up to develop and support the use of the XML-based business reporting standard, XBRL. See eXtensible business reporting language.
XML
See eXtensible markup language.
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