Settlement

This Issue in United States

Concept of Settlement in Futures Trading

In this context of financial law, the following is a definition of Settlement: The act of fulfilling the delivery requirements of the futures contract.

Nostro/settlement Break

Concept of Nostro/settlement Break in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A mismatch of cashflows between the paying and receiving banks, which occurs when the expected amount of cash settlement differs from the actual amount.

Resources

See Also

• Derivatives Contract

Settlement Method Election

Concept of Settlement Method Election in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A process where the electing party (determined at time of trade) has the choice of using cash settlement or physical settlement at expiry rather than specifying at time of trade which settlement method will be used. If no choice is made, there will be a default method specified in the confirmation. The choice must be made prior to a specified date.

Resources

See Also

• Derivatives Contract

Continuous Linked Settlement (cls)

Concept of Continuous Linked Settlement (cls) in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A service offered by CLS Bank International that reduces settlement risk through a simultaneous global multi-currency settlement system.

Resources

See Also

• Derivatives Contract

Settlement

Concept of Settlement in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The process whereby obligations arising under a derivative (i.e. an instrument that transfers risk from one party to the other) transaction are discharged through payment or delivery or both.

Resources

See Also

• Derivatives Contract