Continuous Net Settlement

Continuous Net Settlement - The continuous net settlement is also known as a CNS. This electronic settlement system for securities, which is automated, where a company or firm uses a depository and a clearinghouse to ensure that each security request or transaction provides one net and one cash position. This reduces the risk for the buyer or seller of the security and the firm that is holding the securities by tracking and accounting for the movement of securities and cash involved in any given transaction. The use of continuous net settlement is a good measure for risk reduction on the behalf of all parties involved.