// definition
Atomic settlement
Linked settlement of transaction legs
Short definition
A settlement arrangement that makes the linked legs of a transaction indivisible. In delivery versus payment, final delivery is conditional on the corresponding payment settling. This addresses principal risk during the exchange. Legal and operational safeguards, the credit quality of the settlement asset and available funding still matter.
risk atlas
Knowledge map
Intuition
Linking delivery to payment still requires available settlement funds.
Related analyses
Primary sources
- BIS/CPMI, tokenisation: settlement and risksPages 12–13, section 4 and Annex 1: atomicity, principal risk and liquidity.