Markets & trading
Trade settlement is the completion stage when securities and cash are delivered under market rules. The trade is agreed first; legal and operational completion follows on the settlement schedule.
Make it click
A buyer and seller agree a house deal before money and keys formally change hands. The agreement and completion are connected but separate stages.
Now put that into markets
Clearing confirms obligations and may net trades; settlement moves cash and securities through custodians and depositories.
Cycles differ by market and instrument, and failures can occur. Corporate-action entitlement, cash availability and short selling can depend on settlement status.
Check trade date, settlement date, market holidays, currency and provider cut-offs. Do not assume proceeds are withdrawable immediately after execution.
Operational completion does not remove market risk between trade and settlement. Failed settlement can create costs and legal consequences.
Takeaway
