By definition, a settlement is the procedure a where contract is fulfilled by the delivery of securities. Generally, these securities are delivered against payment. Settlements clerks help in facilitating and speeding up the process of settlements in a banking institution. Settlements clerks assist the settlement executive and other finance professionals in buying and selling securities, studying government regulations, handling certificates and
record keeping.
A settlements clerk may perform various bank officer functions as well as additional functions such as the following:
- Document any transaction done within the context of the settlement
- Check the authenticity of records and smoothen the procedure of share settlements
- Purchase and sell settlement contracts and present them to clients
- Facilitate sales and cash in cheques
- Assist in market research of listed securities to provide advice for settlement executives
- Record keeping and carry out the electronic transference of securities
Settlements clerks can be assigned in any of the following fields in settlement proceedings: share certificates, accounts money markets, dividends, and settlement advisory. In a large bank a settlements clerk may work in only one of these areas, whereas in a smaller financial institution he may be tasked with several or all of those mentioned above.
One important thing for settlements clerks to keep in mind: before a settlement, the security has rights that are considered to be personal. Great risk is involved should a vendor fail to comply with the agreement. After settlement, however, this personal right turns into a proprietary right and as such the security is protected from any insolvency issues from the opposing party.
Job Qualifications
Job applicants should be a graduate of business related courses such as business management, accountancy, economics, etc., or have a five-year working experience in a similar field. Settlements clerk jobs can compensate well, since an entry salary can be $30,000 a year or more.
