Matched trades, netted and settled on one path.
The Darkpools settlement platform takes every execution through netting and reconciliation to delivery-versus-payment, with one continuous record from order to final settlement.
The settlement flow
From the moment a trade matches, settlement takes over.
Post-trade is where most operational risk in a trading venue sits. Executions have to be captured, compared against what each counterparty expects, reduced to the smallest set of obligations, and delivered against payment, all inside a shrinking settlement window.
The Darkpools settlement platform does this as one connected process. It receives executions from the internalizer automatically, so there is no hand-off between systems and no re-keying of trade details. Positions and cash are reconciled continuously rather than at the end of the day, which means a break is visible when it happens and not hours later.
Every state change is written to an immutable record, giving operations, compliance and auditors the same view of each trade.
Trades captured
1,284 executions received from the matching engine
Netted by counterparty
1,284 executions reduced to 47 obligations
Reconciled to custody
Positions and cash checked, with zero breaks
DVP instructions released
Sent to connected custodians and CSDs
Final settlement confirmed
Securities and cash exchanged together
Netting
Fewer, smaller obligations to settle.
Multilateral netting offsets buys against sells for each counterparty and security, so thousands of gross executions collapse into a small set of net movements. Fewer movements mean less settlement risk, lower operational cost and fewer opportunities for something to fail.
The example on this page shows 1,284 executions reduced to 47 obligations, a reduction of 96.3% in the number of movements to settle.
Figures are illustrative. Compression depends on your flow, counterparties and mix of securities.
| Counterparty | Gross | Net | Compression |
|---|---|---|---|
| Custodian N. | 312 | 9 | 97.1% |
| CSD · EU | 248 | 7 | 97.2% |
| Prime A. | 421 | 14 | 96.7% |
| Prime B. | 303 | 17 | 94.4% |
What the platform does
Everything between a matched trade and a settled one.
Multilateral netting
Compress obligations by counterparty and security to minimise settlement movements.
Delivery-versus-payment
Atomic exchange of securities and cash across connected custodians and central securities depositories.
Continuous reconciliation
Position and cash breaks are surfaced in real time, not at the close of the day.
Break management
Exceptions are flagged immediately with the full trade record attached, so they can be investigated and resolved quickly.
Custodian and CSD connectivity
Instructions are delivered to the custodians and depositories your institution already uses.
Immutable audit trail
The complete lifecycle of every trade, from order to final settlement, is recorded for examiners and auditors.
Ready for shorter settlement cycles
T+1 leaves less time to find and fix problems.
The United States moved to a one-day settlement cycle in May 2024. The UK, the EU and Switzerland are scheduled to follow on 11 October 2027. Each shortening of the cycle leaves less time between execution and settlement to correct errors, which makes end-of-day reconciliation harder to rely on.
Darkpools is designed for that environment. Trades flow from matching to settlement without manual hand-offs, and breaks are visible as they occur, so there is more time to resolve them before instructions are due.
Dates are as published by regulators and industry bodies. Check current timetables for your markets.
| Market | T+1 from |
|---|---|
| United States | May 2024 |
| United Kingdom | 11 October 2027 |
| European Union | 11 October 2027 |
| Switzerland | 11 October 2027 |
Specifications
The settlement platform at a glance.
Common questions
About settlement.
What is delivery-versus-payment?
Delivery-versus-payment (DVP) is a settlement method in which the transfer of securities and the transfer of cash happen together, or not at all. It removes the risk that one party delivers and the other fails to pay.
What is multilateral netting?
Netting offsets the buys and sells between counterparties so that only the net amounts need to be settled. Multilateral netting does this across all counterparties at once, which reduces the number and size of settlement movements.
Does Darkpools hold client cash or securities?
No. The platform prepares and releases settlement instructions to your custodians and depositories. Assets remain with them and with your institution. Darkpools is a technology provider.
How does it handle the move to T+1?
Trades pass from matching to settlement automatically and reconciliation runs continuously, so breaks are visible as soon as they occur instead of after the close. That gives your operations team more of a shortened window to resolve them.
What happens when a break is found?
It is flagged immediately and presented with the complete record of the trade, including the original order, the execution and every settlement state change, so the cause can be traced without searching across systems.
Can settlement be used without the internalizer?
The platform is designed to work with the Darkpools internalizer as one system. If you want to discuss another arrangement, raise it in a technical briefing.
See it run against your flow.
Tell us about your desk and we will arrange a technical briefing with our engineers.
We only contact clients from @darkpools.co addresses. See our official channels.