• Post-trading processing occurs after the completion of the transaction.

  • At this stage, the buyer and seller compare the details of the transaction, approve the transaction, change ownership records, and arrange for the transfer of securities and cash.
  • Post-trade processing usually includes a settlement period and a clearing process.
  • OTC trades that do not rely on centralized clearing houses will have to settle on their own trades, exposing counterparty and settlement risk.