Continuous Net Settlement - CNS

Filed Under » Accounting , Active Trading , Bonds

	Definition of 'Continuous Net Settlement - CNS' An automated book-entry accounting system. CNS centralizes the settlement of compared transactions and maintains an efficient flow of security and money balances.
	Investopedia explains 'Continuous Net Settlement - CNS' During the CNS process, there are reports that are generated which document the movements of money and securities. This system provides clearance for instruments like equities, corporate bonds, Unit Investment Trusts and municipal bonds.

Related Definitions

Accounting

To provide a record such as funds paid or received for a person or business. Accounting summarizes and submits this information in reports and statements. The reports are intended both ...
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Clearing

The procedure by which an organization acts as an intermediary and assumes the role of a buyer and seller for transactions in order to reconcile orders between transacting parties.
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Municipal Bond

A debt security issued by a state, municipality or county to finance its capital expenditures. Municipal bonds are exempt from federal taxes and from most state and local taxes, ...
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- Security
  
  An instrument representing ownership (stocks), a debt agreement (bonds) or the rights to ownership (derivatives).
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- Unit Investment Trust - UIT
  
  An investment company that offers a fixed, unmanaged portfolio, generally of stocks and bonds, as redeemable "units" to investors for a specific period of time. It is designed to provide ...
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- Next-Day Funds
  
  In banking, money that becomes available for use on the day following the day it is deposited. In investing, next-day funds are available the business day following a trade; however, ...
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- Net Settlement
  
  The resolution of all of a bank's transactions at the end of the day. Since banks engage in so many electronic transactions, they cannot simply count their cash at the end of the day to ...
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