A way to settle a transaction where two dealers physically meet and exchange the underlying asset for the payment. Window settlement occurs when one or both dealers do not belong to a clearing house. Window settlement has become less common with increased computerization of the securities trade.
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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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.