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Same-Day Funds Settlement
(redirected from Same-Day Settlement)

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Same-Day Funds Settlement (SDFS)
A method of settlement used in trading between well-collateralized parties in good-the-same-day federal funds used by the Depository Trust Company for transactions in US government securities, short-term municipal notes, medium-term commercial paper notes, CMOs, and other instruments.

Same-Day Funds Settlement
Describing a transaction on which the settlement date occurs on the same day as the trade date. Most of the time, same-day funds settlement occurs for funds transferred over the Fed Wire service; in other words, this type of settlement occurs only for the least risky securities and funds.


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WHILE SAME-DAY SETTLEMENT is revving up in the pits, most interested treasury staffs are still shuffling on the sidelines.
The fund supply is the largest on record for the open-market operation under which the BOJ offers to buy bills from banks and other financial institutions for same-day settlements.
Based on Fitch's rating criteria related to self-liquidity (see Fitch's report 'Guidelines for Rating Variable Rate Demand Bonds and Commercial Paper Issued with Internal Liquidity' dated March 7, 2006), SHC's position of eligible cash and investment available for same-day settlement easily exceeds Fitch's 1.
 
 
 
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