QUICK DEFINITION
Settlement — The final transfer of cash or securities that completes a financial transaction.
WHY IT MATTERS
Why Settlement matters in finance
Settlement disruption can create liquidity needs, failed trades and counterparty uncertainty.
FINANCIAL SYSTEM CONTEXT
← Back to the Financial Security GlossarySecurity is also a market-infrastructure question
In financial services, settlement should be understood in relation to operational continuity, data integrity, payments, market infrastructure and interconnected dependencies. A control can be technically effective while still leaving material resilience risk if critical services cannot continue or recover during disruption.