settlement lag (payment lag)

What is settlement lag (payment lag)?

settlement lag (payment lag) definition and meaning on Finance terms:
In a transfer system, the time lag between the acceptance of the transfer order by the system and its final settlement. In an exchange-for-value system, the time lag between entering into a trade/bargain and finally exchanging the financial asset for payment. <

 

reference: https://www.ecb.europa.eu/home/glossary/html/index.en.html

Tags: