Trade Processing: The Settlement Process (Part 3)
Interactive

Trade Processing: The Settlement Process (Part 3)

Intuition Publishing
Updated Sep 25, 2020

Settlement is, ultimately, the fulfilment of the contract and the reason for executing the deal in the first place - that is, to acquire/dispose of an asset or hedge a risk. Cash movements in and out of potentially numerous currency accounts and asset movements need to be reconciled, and any exceptions resolved efficiently and effectively. Here we investigate the possible risks in the settlement process, and why firms implement control policies and procedures.