account period

a designated trading period for the buying and selling of FINANCIAL SECURITIES on the STOCK MARKET. Until 1994 trading on the UK Stock Market took place within a series of end-on fortnightly account periods with all purchases and sales struck during a particular account period being paid for or settled six working days after the end of the account period – the ‘settlement’ day or ‘account’ day.

In 1994 this system was replaced by a ‘rolling settlement’ system in which settlement takes place ten working days after a deal has been struck. Thus, every working day is a settlement day.

Settlement was cut to five days in 1995. See TALISMAN, CREST.

account period

a designated trading period for the buying and selling of FINANCIAL SECURITIES on the STOCK EXCHANGE. On the UK stock market all trading takes place within a series of end-on fortnightly account periods. All purchases and sales agreed during a particular account period must be paid for or settled shortly after the end of the account period.