Simultaneous Settlement will soon be available in PEXA. Simultaneous Settlement allows up to 10 PEXA workspaces to be linked so that settlement of each workspace occurs at the same date and time. Financial settlement for all workspaces involved in a Simultaneous Settlement must take place at the same time. If one workspace is unable to settle, all workspaces in the chain will be unable to settle. Simultaneous Settlement is used on occasions when assurance is required that all settlements in a chain are successfully completed at the same time.
What is Sequential Settlement?
Sequential Settlement is already available in PEXA and can be used for linked transfer transactions. For a Sequential Settlement, the workspaces settle independently, whereby if settlement for a subsequent workspace fails, any linked workspaces that successfully settled earlier in the day cannot be unwound. For example, if the sale in the first workspace is successful and the subsequent purchase in the second workspace fails, the vendor in the first workspace will still have sold their property as scheduled and receive their proceeds as cleared funds. The purchaser in the first workspace is unaffected by the failure of the settlement further down the chain.
What are the different conditions for Sequential Settlement and Simultaneous Settlement in PEXA?
Both types of Linked Settlement must involve funds moving between workspaces (for example, workspace A provides funds for workspace B). All linked workspaces must also be scheduled to settle on the same day. The table below details the different conditions for the two types of Linked Settlements:
Must be scheduled at the same time on the same day
A maximum number of 10 workspaces can be linked for Simultaneous Settlement
Workspaces must be scheduled at least an hour apart on the same day
A maximum of 3 workspaces can currently be linked for Sequential Settlement