Settlement refers to a process of closing of transactions by performing the claims and obligations confirmed in the clearing process through the delivery of securities and the payment of funds between the CCP and members.
The FSCMA prescribes that the delivery of securities and payment of funds subsequent to the transactions at the securities market is the settlement business in the securities market (§297), and the delivery of products and payment of funds subsequent to the transactions at the derivatives market is the settlement business in the derivatives market (§378(2)). As for the settlement of the OTC derivatives transactions, there is no separate provision, however, the FSCMA provides that the settlement instructions are made by the clearing organization for financial investment instruments (§323-10).