- settlement
- The clearinghouse practice of adjusting all futures accounts daily according to gain or loss from price movement is generally called settlement. The CENTER ONLINE Futures Glossary————(1) Noun - The standard number of days between the date that a purchase or sale is agreed upon (the trade date) and the date that the security and the payment actually change hands (the settlement date).See net settlement and regular way settlement.(2) Verb - The process of exchanging a security delivered by a seller for the payment delivered by a buyer. American Banker Glossary————When payment is made for a trade. Bloomberg Financial Dictionary————See physical delivery and cash settlement. Dresdner Kleinwort Wasserstein financial glossary————Delivering securities and/or making payments in the performance of obligations between the counterparties to a transaction. Euroclear Clearing and Settlement glossary————The payment for the securities and the delivery of the securities in return for the payment. Financial Services Glossary————The process of transferring stock from seller to buyer and arranging the corresponding movement of money between the two parties. London Stock Exchange Glossary
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settlement set‧tle‧ment [ˈsetlmənt] noun1. [countable, uncountable] an official agreement or decision that ends an argument between two people or organizations:• After 15 years of litigation, appeals lawyers reached a settlement with the insurance company.
• The inflation rate fell, reflecting recent low wage settlements.
• increases in public sector pay settlements
• The company made a full and final settlement of £30 million.
• Non-US residents are prepared to use the dollar in settlement of debts.
3. [uncountable] FINANCE the process of making payments relating to cheques, buying investments etc; = CLEARING:• The Bank of England and the London Stock Exchange developed a computerised settlement system for transactions in gilt-edged securities.
ˈcash ˌsettlement [countable, uncountable] FINANCEwhen shares etc that are bought on a financial market are paid for with money, rather than with other investments:• After mediation, a cash settlement was agreed upon.
ˌrolling ˈsettlement [uncountable] FINANCEa rule stating that when you buy or sell shares on the London Stock Exchange, the payment must be made within a certain number of days from the time when the contract is made:• Dealings here are for seven-day rolling settlement except in the case of new issues.
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Payment for securities or commodities in exchange for their delivery. Usually takes place some time after the deal itself.* * *
settlement UK US /ˈsetlmənt/ noun► [C or U] an official agreement or decision that ends an argument, often involving a payment of money: »negotiate/reach a settlement
»The lawyer negotiated an out-of-court settlement of $2 million.
► [C or U] payment of a debt: in settlement of sth »I wrote a check for $200 in settlement of my debts.
»Be sure to make full and final settlement by the repayment deadline.
► [U] FINANCE, STOCK MARKET the process by which shares and money are exchanged at the end of a day of trading on a financial market: »The Stock Exchange has an electronic share settlement system.
► [U] the process by which payments are made on cheques: »This charge is made for the returned cheque due to insufficient funds for cheque settlement.
→ See also THE BANK FOR INTERNATIONAL SETTLEMENTS(Cf. ↑the Bank for International Settlements), CASH SETTLEMENT(Cf. ↑cash settlement), ROLLING SETTLEMENT(Cf. ↑rolling settlement)
Financial and business terms. 2012.
