Settlement systems are frameworks that facilitate the transfer of funds and securities between parties, ensuring that transactions are completed efficiently and securely. These systems are essential for the functioning of financial markets, as they help to reduce risks associated with payment delays and errors. There are various types of settlement systems, including real-time gross settlement (RTGS) systems, which process transactions individually in real-time, and netting systems, which consolidate multiple transactions to minimize the number of payments. These systems play a crucial role in maintaining the stability and integrity of the financial system.