After a trade both buyer and seller must exchange payment for securities in order to finalize the transaction. This final exchange is known as settlement, during which buyer and seller details are matched, ownership of the security reassigned, and payment made. Settlement follows the clearing process, during which accountability for both sides of this process are established, and the obligations of both parties (for delivery of securities or payment of funds) are determined.

Custody involves the management, safekeeping and administration of securities on deposits, and may include such services as:

	income collection and processing, when a coupon or a dividend is paid on a security
	events notification, when an action is required on the part of the owner to ensure maximum investment efficiency; or compliance with corporate, legal or regulatory requirements
	redemption, when a bond reaches maturity or is prematurely redeemed and monies become due
	global securities financing, improving liquidity and reducing cross-border transaction costs and risks.