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Cross-Market Settlement

Definition

Cross-market settlement refers to the finalization of transactions involving assets or liabilities across distinct trading venues or financial systems. This process ensures the transfer of ownership and funds between parties operating on different platforms, often requiring intermediaries or specialized protocols to bridge the disparate systems. It addresses the complexities of reconciling divergent ledgers and operational standards, facilitating capital movement and risk management across an interconnected financial landscape. The efficiency of this mechanism directly influences liquidity and operational friction within global markets.