window settlement

Window Settlement

A form of settlement between dealers whereby trades are settled through the physical comparison of transactions and actual money and stocks are transferred.

Notes:

With the increased role of clearing corporations and depositories, window settlement is not as common as it once was. Typically, this form of settlement will only occur when one or both the participating parties to a trade are not members of the same clearing firm.

See also: Clearing, Clearing House, DTC

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window settlement

The physical settlement of transactions between dealers. Window settlement is used when one or both participants are not members of a clearing firm such as the National Clearing Corporation. Settlement entails an actual physical comparison.