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 ?
The Bank of England on Thursday reported that the settlement day for CHAPS and CREST is to be extended by one hour and forty minutes from summer 2016.
HSBC observed that the UAE and Qatar had improved their delivery-versus-payment systems and now include the buyer-cash-compensation procedure, where the buying investor is paid in cash if a security is unavailable for delivery on settlement day. According to analysts, the market upgrade could see more than $430 million flowing into Qatar and about $370 million into the UAE.
The UAE and Qatar have improved their delivery-versus-payment systems and now include the buyer-cash-compensation procedure, where the buying investor is paid in cash if a security is unavailable for delivery on settlement day, the report said.
In addition, December 31 marked the consolidated settlement day for the Bank of China, and headquarters' executives prepared to visit each branch to monitor year-end audits--even though traffic around Bund 12 was blocked or limited for security purposes.
He also helped train mediators for the Cuyahoga County courts as a part of their Settlement Day program.
After regenerating each settlement day with the historical transactions in the order they were settled, we are able to explore what would have happened if the flow of funds was interrupted by an operational problem in a single bank.
The buyer had offered to buy the shares at EUR13.50 per unit plus an increase of 12% per year from 1 November 2010 to the settlement day.
Due to this system all clients need to have Sub Accounts with Clearing member participants and the Securities will be routed from the respective seller to the buyer without involving the main account, Clearing member will continue to be responsible for money and securities obligations, however, there is a provision available to Brokers enabling them to pledge the securities in favour of a Bank, in case of non-payment by their clients on settlement day. In case of failure of transactions the securities will be moved to the Main Account of the Member.
The subscription period for the seven-year bond with a volume of between EUR 65 million (USD 89.5m) and EUR 75 million has been set for October 27 to October 29 and the settlement day is on November 3.
Trading volume on the main section came to 1,388.09 million shares, more than twice as many as Thursday morning's 609.57 million as Friday is the settlement day for Nikkei 225 futures and options contracts.
Bonds will be open for banks, retirement and investment funds, and the settlement day will be on April 8th, 2010, the bank added.

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