GLOBAL PAYMENTS KNOWLEDGEISO 20022 / SWIFT / SEPA / MT / MX
PAYMENTSSIGNAL

The interactive academy for the standards, messages, and rails that move money.

PROGRESS
DRILL · SETTLEMENT RISK, FINALITY, AND CLS

The words behind Settlement risk, finality, and CLS

Read the plain-language definition, then name the term it describes.

A settlement method that pays out one leg of a trade only if the matching leg is paid too, removing the risk of delivering one side and receiving nothing.

Step 1 of 2

THE DRILL AS TEXT

  1. A settlement method that pays out one leg of a trade only if the matching leg is paid too, removing the risk of delivering one side and receiving nothing.
    • Payment versus payment (PvP)
  2. The global system that settles foreign exchange trades payment versus payment, so neither currency leg is paid unless the matching leg settles too.
    • CLS

This drill is built from Settlement risk, finality, and CLS — it rearranges material written and sourced on that page rather than asserting anything new, so every claim in it is checkable there.