For the complete documentation index, see llms.txt. This page is also available as Markdown.
Equities
US cash equities trading
PROBLEM
The principal risk in securities markets is settlement risk, where the seller of a security fails to deliver
the security while receiving payment or where the buyer of a security fails to deliver payment while
receiving the security. To deal with such risk, securities settlement systems have been put in place
in many markets to ensure a delivery versus payment (DvP) mechanism where the settlement of
the cash and the securities leg in a trade are intrinsically linked.
Current post-trade settlement arrangements that rely on a designated third party tend to be slow
and inefficient.
