settlement date

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Settlement date

The date on which payment is made to settle a trade. For stocks traded on US exchanges, settlement is currently three business days after the trade. For mutual funds, settlement usually occurs in the US the day following the trade. In some regional markets, foreign shares may require months to settle.

Settlement Date

1. The date upon which the buyer of a security must pay the seller. The settlement date depends upon the type of security traded; for example, stocks usually have a settlement date three days after the trade date. On the other hand, government bonds must be settled on the next trading day. It is important to note that when calculating the capital gains or losses, one uses the trade date and not the settlement date.

2. In life insurance, the day the benefit is paid. This usually follows the death of the beneficiary, unless he/she cashes in the policy.

settlement date

The date on which either cash (for a buyer) or a security (for a seller) must be in the hands of the broker in order to satisfy the conditions of a security transaction. Compare trade date. See also delayed settlement.

Settlement date.

The settlement date is the date by which a securities transaction must be finalized.

By that date, the buyer must pay for the securities purchased in the transaction, and the seller must deliver those securities.

For stocks, the settlement date is three business days after the trade date, or what's referred to as T+3. For options and government securities, the settlement date is one day, or T+1, after the trade date.

In figuring long- and short-term capital gains on your tax return, you use the trade date -- the date you buy or sell a security -- rather than the settlement date as the date of record.

settlement date

Closing date.

References in periodicals archive ?
At the end of the settlement day for the transaction, the former owner has cash and the buyer has a security entitlement reflecting "ownership" in the security.
Final settlement day is the third Wednesday of the contract month, which is March, June, September, or December.
This interferes with the timely updating of customer accounts by participants and extends the window of risk associated with processed transactions until very late in the settlement day when there is generally little opportunity to react.
General Motors sends ACH formatted payment instructions, with information identifying the vehicles for which payment is being requested, to one of its banks(5) The ACH debit transfers are processed in the same way that ACH credit transfers are, except that, on the settlement day General Motors's banks credit General Motors's accounts and the dealers' banks debit the dealers' accounts.
The ECB announced on 8 December 2011 that counterparties participating in the three-year LTROs have an option to repay any part of the amounts allotted to them in these operations on any day that coincides with the settlement day of a main refinancing operation, unless otherwise decided by the Governing Council.
These bullet swaps will be European-style and will settle to the corresponding futures settlement price on theswap's final settlement day.
8m ROLLING SETTLEMENT DATES Purchase Day Dec 21 Dec 22 Dec 23 Settlement Day Dec 24 Dec 29 Dec 30 FTSE 100 SHARE INDEX WORLD SHARE SPOTLIGHT 5930 1800 4700 Friday''s close: 5871.
With trading volume very thin because of foreign investors' absence, it is hard for players to buy shares, while selling is slightly increasing on the last settlement day of this year, brokers said.
For recurring payments such as social security benefits and salaries, the government uses the Federal Reserve's automated clearinghouse (ACH), an electronic network that allows the reserve account of a depository institution to be credited for payments from Treasury's checking account on a specified settlement day.
Acceptance period and settlement day The acceptance period of the Offer is scheduled to run from 13 May 2011 to 7 June 2011.
currency rose slightly as Japanese importers bought it on the regular settlement day, dealers said.
Adjustment plus seasonal borrowing averaged a little above expected levels over most of the intermeeting interval, although very large adjustment borrowing occurred on the settlement day of one reserve maintenance period as a result of a reserve shortfall.