settlement month

(redirected from Settlement Months)

Settlement Month

The month during which the underlying asset of a futures contract or forward contract is delivered to the contract holder. A contract holder may offset the contract by taking an opposite position before it matures, but any investor holding such a contract on the expiration date must take delivery during the settlement month. See also: Delivery date, Notice day.

settlement month

The month in which delivery is to take place in a futures contract. Most futures positions are reversed (that is, long positions are sold and short positions are covered) before their respective settlement months.
References in periodicals archive ?
Consistent with some analysts' practice of matching realizations to settlement months and making certain other adjustments in order to exclude one-time items, adjusted non-GAAP net income for the third quarter 2014 excluded a previously disclosed non-cash net gain of $469.
EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust reported company earnings to match realizations to production settlement months and make certain other adjustments to exclude non-recurring items.
EOG believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust reported Income Before Interest Expense and Income Taxes (GAAP) to add back Depreciation, Depletion and Amortization, Exploration Costs, Dry Hole Costs and Impairments and further adjust such amount to match realizations to production settlement months and make certain other adjustments to exclude non-recurring items.
Hedging strategies also combine financial and statistical models that optimize the placement of hedge coverage between optional and mandatory delivery systems, forward programs and settlement months.
Few, if any, secondary marketing departments have the combined statistical and financial algorithms needed to optimize the placement of hedge coverage between forward programs, between optional and mandatory delivery positions and between settlement months.
The secondary marketing department should determine for each forward type, settlement month and coupon, what the mortgage banker's net long or short position is, based on a loan-by-loan analysis of likely settlement month and market value sensitivity analysis.
Consistent with some analysts' practice of matching realizations to settlement months, adjusted non-GAAP net income available to common for the quarter was $109.