T plus Zero Settlement refers to a financial transaction settlement system where the exchange of assets and funds occurs on the same day the trade is executed. This immediate finality contrasts with traditional settlement cycles that involve delays of one or more business days. Achieving T+0 settlement reduces counterparty risk and enhances market liquidity. It represents a significant advancement in transaction efficiency.
Context
The pursuit of T+0 settlement is a major objective in the modernization of global financial markets, with blockchain technology offering a viable path, often highlighted in news. Discussions in the crypto space focus on how distributed ledger technology inherently supports real-time gross settlement for digital assets. Implementing T+0 across traditional markets faces significant operational and regulatory challenges.
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