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Settlement
Source:
Encyclopedia of Banking & Finance (9h Edition) by Charles J Woelfel
(We recommend this as work of authority and you can order
it here)
This
term has three applications.
1.
In general, the striking of a balance between two or more parties
having mutual dealings with one another and the payment of the debit balance
by the debtor (debtors) to the creditor (creditors).
2. The striking of balances among members of a CLEARINGHOUSE
association.
3.
The process by which purchases and sales of securities among brokers
are determined and the balances paid off at the stock exchange clearinghouse;
the process by which interbroker, non-clearinghouse securities transactions
or produce exchange transactions are paid off.
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