Glossary

Settlement

Is a completion of a Transaction or of processing with the aim of discharging accrued obligations through the transfer of funds or securities. A settlement may be final or provisional.

How does Settlement work?

Settlement can work in multiple ways, the most common is adherence to the instructions which came after Clearing and discharging the obligations which are due between the parties. It may be done either by employing a neutral counterparty (such as Clearing System), or by the employment of Financial Institutions which are involved in the Transfer themselves, or by employing another intermediary.

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