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.
RESOURCES
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