The first steps in the settlement process are validation and matching.
The first chapter of our settlement efficiency series looks at the matching process and how its efficiency could be improved.
The two parties to the transaction independently enter the key parameters into their systems and the two sets of data – once they reach the CSD - are compared, validated and matched. If the required parameters match, the settlement process will progress smoothly. If there are differences, they must be resolved before the transaction can settle. This is the first key pinch point in the process.
