Markets · 6 pages · 12 min

How settlement is the unglamorous half

A trade agrees a price, and settlement is the later exchange of cash for the securities.

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From the opening

A trade is the agreement on price and quantity, and settlement is the later exchange of cash for the securities or the payment that discharges the duty. The headline is the print, and the unglamorous half is matching, netting, payment, and the change in who actually holds the asset. The opening covers the trade is only the bargain, settlement moves cash and title, and a fail means delivery missed.

The rest of the brief — the later sections and the reading notes — opens after Stripe confirms payment.

Inside

The trade is only the bargain
Settlement moves cash and title
A fail means delivery missed
A confirmation is not ownership
Where the idea stops applying
A distinction worth keeping

Sources

Securities settlement after trade
Failed trade and buy-in

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How settlement is the unglamorous half

From the opening

Inside

Sources

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