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John Paul from the blog Pennant Arthur discusses cross settlement and net settlement in this video. Settlement is defined as the movement of funds according to the Bank of International Settlements, leading to an understanding of gross and net settlement. Gross settlement and net settlement processes differ in how funds are moved. Settlement involves fulfilling obligations between parties in financial transactions by transferring funds. Understanding these differences will be easier after watching this video. The BIS defines settlement as discharging obligations in fund or securities transfers between parties. Settlement is essentially paying off debt in financial operations.