Window Settlement

A A A

DEFINITION

A form of settlement between dealers whereby trades are settled through the physical comparison of transactions and actual money and stocks are transferred.

INVESTOPEDIA EXPLAINS

With the increased role of clearing corporations and depositories, window settlement is not as common as it once was. Typically, this form of settlement will only occur when one or both the participating parties to a trade are not members of the same clearing firm.


RELATED TERMS
  1. Depository Trust Company - DTC

    One of the world's largest securities depositories, it holds in excess of US$1 ...
  2. Clearing

    The procedure by which an organization acts as an intermediary and assumes the ...
  3. Clearing House

    An agency or separate corporation of a futures exchange responsible for settling ...
  4. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee customers ...
  5. Market-Maker Spread

    The difference between the price at which a market maker is willing to buy a ...
  6. Dealer

    A person or firm in the business of buying and selling securities for their ...
  7. Floor Broker (FB)

    An independent member of an exchange who is authorized to execute trades on ...
  8. Bid Support

    A manipulative practice employed to prop up a company’s stock price on the open ...
  9. Brokered Market

    A marketplace where buyers and sellers are brought together by agents or intermediaries ...
  10. Advisory Management

    A group within a bank or brokerage that provides professional, personalized ...
Related Articles
  1. Principal Trading and Agency Trading
    Investing Basics

    Principal Trading and Agency Trading

  2. The 4 Ways To Buy And Sell Securities
    Options & Futures

    The 4 Ways To Buy And Sell Securities

  3. 4 Dishonest Broker Tactics And How To ...
    Personal Finance

    4 Dishonest Broker Tactics And How To ...

  4. Choosing A Compatible Broker
    Retirement

    Choosing A Compatible Broker

  5. Direct Access Trading Systems
    Options & Futures

    Direct Access Trading Systems

  6. Don't Let Brokerage Fees Undermine Your ...
    Options & Futures

    Don't Let Brokerage Fees Undermine Your ...

  7. Stop Loss Order Strategy
    Investing Basics

    Stop Loss Order Strategy

  8. The NASDAQ Pre-Market: What You Need ...
    Investing Basics

    The NASDAQ Pre-Market: What You Need ...

  9. What does the Daily Average Revenue ...
    Investing Basics

    What does the Daily Average Revenue ...

  10. What You Need To Know About The Fiduciary ...
    Investing Basics

    What You Need To Know About The Fiduciary ...

comments powered by Disqus
Hot Definitions
  1. Degree Of Financial Leverage - DFL

    A ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in earnings before interest and taxes (EBIT).
  2. Jeff Bezos

    Self-made billionaire Jeff Bezos is famous for founding online retail giant Amazon.com.
  3. Re-fracking

    Re-fracking is the practice of returning to older wells that had been fracked in the recent past to capitalize on newer, more effective extraction technology. Re-fracking can be effective on especially tight oil deposits – where the shale products low yields – to extend their productivity.
  4. TIMP (acronym)

    'TIMP' is an acronym that stands for 'Turkey, Indonesia, Mexico and Philippines.' Similar to BRIC (Brazil, Russia, India and China), the acronym was coined by and investor/economist to group fast-growing emerging market economies in similar states of economic development.
  5. Pension Risk Transfer

    When a defined benefit pension provider offloads some or all of the plan’s risk – e.g.: retirement payment liabilities to former employee beneficiaries. The plan sponsor can do this by offering vested plan participants a lump-sum payment to voluntarily leave the plan, or by negotiating with an insurance company to take on the responsibility for paying benefits.
  6. XW

    A symbol used to signify that a security is trading ex-warrant. XW is one of many alphabetic qualifiers that act as a shorthand to tell investors key information about a specific security in a stock quote. These qualifiers should not be confused with ticker symbols, some of which, like qualifiers, are just one or two letters.
Trading Center