Update : Jun. 22, 2012
Settlement is the process of exchanging funds and securities between buyer and seller of the transaction. Currently, settlement for regular trades executed on the TSE market takes place on the 3rd business day after the transaction - often referred to as T+3. Japan Securities Clearing Corporation (JSCC) acts as central counterparty to settlement, so that settlement is made between securities companies and JSCC, rather than between securities companies. Settlement is done on a net basis, with only the difference between each member's sales and purchases changing hands, resulting in the reduction of the sheer volume of funds and securities to be delivered.