aged fail

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Aged fail

An account between two broker/dealers that remains intact 30 days after the settlement date. The receiving firm must adjust its capital as it can no longer treat this account as an asset.

Aged Fail

A transaction that has not been settled more than 30 days after the trade date. An aged fail is subject to specific fines and other charges from the SEC. Aged fails occur most often between clearing houses and institutions; individual investors rarely commit an aged fail. See also: Fail, Settlement.

aged fail

A contract between broker-dealers that remains unsettled 30 days after the settlement date. A security that is subject to an aged fail may no longer be counted as an asset by the receiving firm.
References in periodicals archive ?
Sound practices detailed in the Notice include: heightened firm scrutiny of red flags such as trading limit breaches, unrealized profit and loss on unsettled transactions, unusual patterns of cancellations and corrections, a pattern of aged fails to deliver; increased password security and other protections of firm systems and risk management information; and creating a stronger compliance culture within the firm.
The DTCC Web site has also made clear that the figure is not a daily amount of fails, but a combined figure that includes both new fails on the reporting day as well as aged fails.