Settlement & Transaction
Settlement & Delivery
Two Separate Steps, One Seamless Experience
When you place a trade on Initiativ, two things happen:
You're matched with a counterparty — the trade is settled.
The instruments (like EUAs) are transferred — the trade is delivered.
Though these happen simultaneously, they are two distinct steps. Let’s break them down.
What is Settlement?
Settlement is when the buyer and seller are matched and locked into the trade. Ownership is legally transferred at that moment — digitally.
A simple way to picture it:
You place an order on Amazon. Once your payment is processed and accepted, the transaction is settled — Amazon owes you the item.
In the same way, once two parties are matched on Initiativ, their balances are updated, and the system records the trade immutably on the blockchain. The trade is final — even before anything physically moves.
What is Delivery?
Delivery is what happens after the trade is settled.
Using the same metaphor:
Amazon now ships your item. That’s delivery — the fulfillment of what was agreed.
On Initiativ, this means:
A transfer instruction is sent to the registry
The compliance instrument (e.g. EUA) is moved from one account to another
The delivery is confirmed when the registry completes the movement
If the instrument were something physical — like metal or grain — the system would similarly trigger a logistics action, not a registry update.
Normally, This Is Done by a Clearinghouse
In traditional markets (like ICE or EEX), these two steps are often separated:
Settlement is handled by the exchange
Delivery is handled by a clearinghouse (also known as a compensation chamber), such as ICE Clear or ECC
A clearinghouse acts as a middle layer. It guarantees that both sides of the trade fulfill their obligations and manages risk by inserting itself as the buyer to every seller, and the seller to every buyer.
But here’s the difference: Because Initiativ controls both layers — digital execution and delivery infrastructure — we don’t need a clearinghouse.
Fully Integrated = Lower Cost, More Control
On Initiativ:
Settlement happens instantly and immutably on our private blockchain
Delivery happens through automated, secure API calls to our trust and national registry accounts
There’s no clearinghouse, no third-party handoff, and no additional clearing fees
This is why Initiativ can offer a more cost-effective trading experience: You pay per ton, not a clearing rate, percentage, or margin-based spread.
And thanks to the design of our infrastructure, the entire process remains fully compliant and auditable.
System Diagram – How Settlement & Delivery Work Together
[ User Trade Initiated ]
↓
+-----------------------+
| Settlement Layer |
|-----------------------|
| Private Blockchain |
| Matching Engine |
| Shadow Registry |
+-----------------------+
↓ (API Trigger)
+-----------------------+
| Delivery Layer |
|-----------------------|
| Fiduciary Trust (EUR) |
+-----------------------+
↓
[ Buyer Receives EUA ]
[Buyer transfers out to National Registry (EUA)]
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