[Settlement & Clearance Policy]
In order to maintain an absolute arm's length relationship with Clients and PSPN members, PSCS does not provide settlement or clearance services. As a result, PSCS does not participate in novation and PSPN Rules do not dictate the settlement or clearance practices of the parties. As an outsider to the transfer contract we make recommendations concerning the most efficient and secure private options available.
Settlement
The settlement process should generally take place within 72 hours of trade day for contract liability purposes. Parties to the transaction agree upon a settlement method. Because this can be accomplished in any way that brings about a physical transfer of value (security for payment), we recommend that parties take the simplest approach which will minimize delivery risk and payment risk. For delivery of the security we recommend either (i) hand delivery when possible or (ii) the services of a reputable private courier with delivery confirmation and insurance. For transfer of payment we recommend either (i) money wire/transfer, (ii) postal money orders or (iii) non-confiscatable gold or silver coin.*
Clearance
Parties are responsible for clearing. This means all trade captures, matching, confirmations, comparisons and affirmations must be performed by the parties using the method or system agreed upon in their private contract. We recommend sellers not only provide availability of the physical security on settlement day, but in a digital format accompanied by a statement of ownership and promise to sell within the 72 hours of settlement day. For payment availability we recommend buyers not only provide payment on settlement day, but that a conditional promise to pay be provided to the seller within 72 hours of settlement day as well.
*A certificate of capital interest secured by such gold or silver coin in an express trust which is an obligation protected under declaration of trust is a safe alternative to this payment method. The term "non-confiscatable" refers to a particular grade of coin ideal for use as money, as well as for wealth preservation.