Settlement Engine
Also known as: Settlement Rail, IOF Settlement, Clearing and Settlement Engine
- platform
- engine
- clearing
- iso-20022
- glossary
Definition
The Settlement Engine is the 10th domain engine of the Islamic Open Finance™ platform, responsible for clearing and final settlement of financial transactions. It handles netting calculations, settlement instruction generation, failed-settlement management, and retry workflows. All settlement messages are emitted as ISO 20022-compliant XML/JSON payloads (pacs.008, pacs.009, sese.023), ensuring interoperability with SWIFT and TARGET2-Securities networks. The engine integrates with the TigerBeetle double-entry ledger for atomic balance updates and with the Clearing rail for pre-settlement netting. It is Shariah-compliant by design: settlement mechanics respect the prohibition on Riba by treating settlement obligations as exchange (Sarf) rather than interest-bearing credit.
Primary Sources & Standards
- ID
- settlement-engine
- Status
- active
- Version
- 1.0.0
- Effective
- 2025-01-01