Exchanges

Principal Risk

June 21, 2023
Risk Management

Settlement Risk

June 22, 2023

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An asset or a claim on an asset that is accepted by a beneficiary (in a financial transaction) as a means to discharge a payment obligation. It is any type of asset/ claim on an asset that is used for the discharge of obligations as defined by the rules, regulations or customary practice in a country/ jurisdiction.

Settlement assets are by nature liquid and marketable. Examples of such assets include cash and cash equivalents, marketable securities, etc.

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