Settlement: Rapid Fire

What this video covers

• Why comparison proves agreement on trade details but is not settlement, and what happens when reported details differ
• How delivery versus payment (DVP) and receive versus payment (RVP) link securities to money so neither side takes the other's credit risk
• How continuous net settlement (CNS) turns a member's many trades in one security into a single net long, net short, or flat position against the clearing agency
• The exam distinction between a don't know notice, which questions whether the trade happened, and a fail, which concerns nondelivery after agreement
• Why silence answers the notice under the alternative procedure, and how the seller can block a buy-in with proof or timely notice of possession
• How the standard buy-in path requires written notice then execution no sooner than the third business day after delivery was due, versus cash or guaranteed-delivery execution the next day with no prior notice
• How closeout deadlines follow the source of the fail, not the security, including the 1-day immediate closeout, the 3-day documented long sale or bona fide market-making rule, and the 35th consecutive calendar day deemed-owned delivery restriction with purchase-only requirement