Official Settlement Account

What it is:

An official settlement account is an account that records transactions of foreign exchange reserves, bank deposits and gold at a central bank.

How it works/Example:

For example, the Federal Reserve uses official settlement accounts to keep track of its transactions in gold, dollars or other assets with other countries' central banks.

Why it Matters:

The official settlement account is a crucial component in the nation's balance of payments. Though the account may keep track of a specific transactions, it also helps record a country's assets with other banks, whether it is running a deficit or surplus in those assets, and the movement of dollars to foreign governments.

Best execution refers to the imperative that a broker, market maker, or other agent acting on behalf of an investor is obligated to execute the investor's order in a way that is most advantageous to the investor rather than the agent.