Page 50 - PRIAA Glossary

DEMURRAGE
Revenue paid to a ship owner by the charterer for port delays which are, for the account of the charterer, calculated in accordance with specific charter terms.
DEPOSITORY RECEIPT
A depositary receipt is a type of financial security that represents an interest in foreign stocks. A depositary receipt is traded on a local stock exchange. Depository receipts allow investors to trade on local exchanges and own foreign shares without executing the corresponding currency transaction. The depositary receipts issued by the banks
in the United States are known as American Depositary Receipts (ADRs). European banks issue European depositary receipts, and other banks issue global depositary receipts (GDRs). Both ADRs and GDRs are usually denominated in US dollars, but can also be denominated in Euros.
DEPOSITORY TRUST AND CLEARING CORPORATION (DTCC)
A holding company consisting of five clearing corporations
and one depository, making it the world’s largest financial services corporation dealing in post-trade transactions. The DTCC provides clearance, settlement and information services for equities, corporate and municipal bonds, unit investment trusts, government and mortgage-backed securities, money market instruments and over-the-counter (OTC) derivatives.
It also manages transactions between mutual funds and insurance carriers and their respective investors.
DEPOTBANK
Custodial bank services specific to Germany and German law. In German collateral management, a second layer of approval is required before assets move for initial margin, such that a Depotbank must affirm that the client does indeed have the collateral it is pledging.
DERIVATIVE
A financial contract that transfers risk from one party to the other. A derivative derives its value from the price or level of an underlying asset or measurement, such as a bond, loan, equity, currency, commodity, index, published interest rate or a combination of the above.
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