Settlement is the mechanism by which a security changes owner simultaneously and securely with the corresponding payment. For a security carrying an ISIN, that mechanism runs through European central securities depositories.
When an investor subscribes to or sells a security issued by a Comparto, the instruction is passed by their custodian bank to one of those channels. Settlement takes place on a delivery-versus-payment basis.
These mechanics are fully standardised and do not depend on the nature of the issuer: a security issued by a Comparto settles exactly like a conventional bond, once it is open to the same channels.
For a security to be eligible for standard settlement, the issuer must have completed certain steps beforehand: assignment of the ISIN, opening with the relevant central depository, and appointment of an agent maintaining the position. Comparto handles this preparation in full, ahead of listing.
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