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Next day settlement |
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Next day settlementTransaction in which the contract is settled the day after the trade is executed. See: Settlement date.Next day settlement Similar MatchesCash settlement contractsCash settlement contractsFutures contracts such as stock index futures that settle for cash and do not involve delivery of the underlying. Settlement daySettlement dayThe day on which purchased securities are due for delivery to the buyer and payment is due to be made to the seller. For nominee accounts, the standard settlement day is three days after the dealing day - known as T+3. For certificated accounts (where shareholders hold share certificates) settlement times are longer. Settlement rateSettlement rateThe rate suggested in Financial Accounting Standards Board (FASB) 87 for discounting the obligations of a pension plan. The rate at which the pension benefits could be effectively settled if the company sponsoring the pension plan wishes to terminate its pension obligation. Regular way settlementRegular way settlementIn the money and bond markets, the standard basis on which some security trades are settled is that the delivery of the securities purchased is made against payment in Fed funds on the day following the transaction. Cash sale or settlementCash sale or settlementTransaction in which a contract is settled on the same day as the trade date, or the next day if the trade occurs after 2:30 p.m. EST and the parties agree to this procedure. Often occurs because a party is strapped for cash and cannot wait until the regular five-business day settlement. See: Settlement date. Further SuggestionsReal Estate Settlement Procedures Act (RESPA)Continuous net settlement (CNS) Settlement date Exercise settlement amount Skip day settlement Dispute Settlement Body Good delivery and settlement procedures Same Day Funds Settlement (SDFS) rolling settlement Settlement risk Cash Settlement Regular settlement Bank for International Settlements Short settlement settlement Dispute settlement Dispute settlement mechanism Uniform Settlement Statement Insurance settlement Bank for International Settlements (BIS) cash settlement Structured settlement Immediate settlement Exchange Delivery Settlement Price settlement options |
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