Delivery versus payment
T+0 settlement with pre-settlement validation and full counterparty risk elimination. Every transaction recorded on an immutable register.
Settlement flow
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Pre-Settlement Validation
Two-step maker-checker approval workflow. An operation is submitted, then independently approved or rejected by a second authorized party. Ensures dual control before any settlement.
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Hold / Escrow
Lock securities pending transaction outcome. Three outcomes: Execute (deliver to counterparty), Release (return to holder, trade cancelled), Reclaim (automatic return on expiration timeout).
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Simultaneous Settlement
Delivery versus payment in a single transaction. Securities and payment swap simultaneously — all or nothing. No counterparty risk.
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Audit Trail
Every operation recorded with transaction reference, timestamp, operator identity. Immutable register plus comprehensive application-level audit log.
Settlement states
Every settlement progresses through defined states with deterministic branching on failure.
Received
Operation submitted, awaiting validation
Validating
Pre-settlement checks and maker-checker approval
Holding
Securities locked in escrow pending settlement
Executing
DvP executed
Settled
Final and irrevocable
Failure branches: Rejected (validation failed), Hold Failed (escrow not established), Failed (execution error), Rolling Back (reverting to pre-settlement state).
Cash and payment
Payment currencies
Settlement uses registered digital payment currencies. When central banks issue digital currencies on supported networks, they are registered as new payment currencies with no code changes required. CBDC-ready by design.
Settlement Account
Central operational account equivalent to a CSD's cash settlement account. Holds reserves for settlement processing fees and payment currencies for operations. Participants never manage infrastructure fees — pure finance interface.
Payout batch
Corporate action distributions (dividends, coupons, redemptions) use batch payouts — a single operation sending payment currency from the Settlement Account to multiple recipients with individually specified amounts. Each recipient's entitlement calculated from position snapshots.
Related
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