The Jolly Contrarian’s Glossary
The snippy guide to financial services lingo.™
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Negotiation Anatomy™

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The classic event of default in a financial contract. There is no more profound indication that you may be unable to honour your obligations that the fact you have actually not done so. The exception is stock lending transactions, where the failure to lend Securities, or return Securities or Collateral, might be a result of ordinary market operation, where settlement failures are common, and one often relies on someone else — or a chain of someone elses — settling the necessary Securities into you so you can settle them to your loan counterparty.

See also