Clearing & Settlement
Posted 9 May 2005
In the equities and fixed income markets, this space covers all activity surrounding the clearing and settlement of the executed trade. Information is typically exchanged between a client (e.g. Investment Management Institution or Broker / Dealer) and a financial institution (e.g. Custodian or Clearer) to provide settlement instructions, and confirmations of settlement. In the case of cross-border trades, additional instructions and confirmations can be exchanged between Global Custodians or Global Clearers and their local agents (e.g. Local Custodian or Local Clearer).
Additionally, in the case of both domestic and cross-border trades, the Custodian (Global or Local) and the Clearer (Global or Local) will exchange instructions and confirmations with the CSD (Central Securities Depository) in the market where the trade will settle. In place of a local CSD, the trade could settle through an ICSD (International CSD – e.g. Euroclear, Clearstream).
SWIFT supports the Clearing & Settlement space through our ISO 15022 message standard offering: