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Settlement of securities is a business process whereby securities or interests in securities are delivered, usually against payment of money, to fulfill contractual obligations, such as those arising under securities trades.

What is the meaning of settlement in banking?

A settlement bank is the last bank to receive and report the settlement of a transaction between two entities. It is the bank that partners with an entity being paid, most often a merchant. As the merchant's primary bank for receiving payment, it can also be referred to as the acquiring bank or the acquirer.

What is a settlement payment?

A structured settlement is a stream of payments to a person who won or settled a lawsuit. The defendant funds the settlement. These resolutions differ from lump-sum settlements because of the way the money is paid over time.

What is the settlement process?

SETTLEMENTPROCESS OVERVIEW

In the financial industry, settlement is generally the term applied to the exchange of payment to the seller and the transfer of securities to the buyer of a trade. It's the final step in the lifecycle of a securities transaction.