Same-Day Funds 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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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