SETTLEMENT
Payment versus Payment
Links final transfer of one currency to final transfer of another.
Market use
Designed to reduce FX principal risk.
What it means
Links final transfer of one currency to final transfer of another.
Example
CLS is a prominent application for eligible FX settlement.
How to interpret it
This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.
Related Conventions
BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.