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.
References in periodicals archive ?
Thus, the day 2 and 3 returns cast doubt on the spread-based explanation of the post-event performance and are supportive of Cooper (1999) where skip-day weekly returns on losers are similarly high.
Similar to Cooper's skip-day next week result, there is a positive return that increases in magnitude as the event size becomes more negative.
For positive events, as the magnitude increases, the skip-day, next week return decreases and eventually becomes negative, indicative of overreaction.