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Skip-Day Settlement

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Skip-day settlement
Settling a trade one business day beyond what is normal.

Skip-Day Settlement
On an exchange, the practice of settling a transaction one day after the normal time period in which it is settled. For example, if a trade is usually settled five business days after the transaction, skip-day settlement requires the trade to settle six days after the original transaction. See also: delayed settlement.

skip-day settlement
The settlement of a security trade one business day beyond the usual settlement date. For example, a trade that usually requires next-day settlement would require payment and delivery two business days following the trade date using skip-day settlement.


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