Window Settlement

DEFINITION of 'Window Settlement'

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

BREAKING DOWN 'Window Settlement'

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.

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