Short settlement


 

Home
Site Map
Add Term
Search
About Us
Contributors

Short settlement

Trade settlement made prior to the standard five-day period due to customer request.



Short settlement

Similar Matches

Rolling settlement

Rolling settlement

Settlement is the process by which investors pay for shares they have bought and receive payment for shares they have sold. Before July 1994, this process was done by means of an 'account period', normally ten working days. All the transactions during that period were balanced against each other to produce a single figure, which was either paid to the investor or due from him, depending on whether the value of his purchases was higher or lower than the value of his sales in the period. One of the features of the account period was that transactions taking place at the beginning of it (say, Day 1) didn't have to be settled until about 14 days later, whereas transactions at the end (say Day 10) had to be settled within 4 days.In July 1994, the account period system was replaced by ten day (T+10) rolling settlement, which means that each transaction has to be settled ten days after the transaction date. This was subsequently reduced to five days (T+5) and in February 2001 was reduced to three days (T+3).These significance of rolling settlement and of shortened settlement times is that when investors sell shares, the proceeds get paid into their account quicker, and when they buy shares they have to pay for them quicker. It requires careful money management on the part of the investor.


Settlement price

Settlement price

A figure determined by the closing range that is used to calculate gains and losses in futures market accounts. Settlement prices are used to determine gains, losses, margin calls, and invoice prices for deliveries. Related: Closing range.


Cash settlement contracts

Cash settlement contracts

Futures contracts such as stock index futures that settle for cash and do not involve delivery of the underlying.


Cash Settlement

Cash Settlement

The process by which the terms of an option contract are fulifilled through the payment or receipt in dollars of the amount by which the option is in-the-money as opposed to delivering or receiving the underlying stock.


Regular settlement

Regular settlement

Transaction in which a stock contract is settled and delivered on the fifth full business day following the date of the transaction (trade date). In Japan, regular settlement occurs three business days following the trade date; in London, two weeks following the trade date (at times, three weeks); in France, once per month.


Further Suggestions

settlement day
Cash sale or settlement
settlement options
Good delivery and settlement procedures
settlement
Dispute settlement
Same Day Funds Settlement (SDFS)
Bank for International Settlements
Immediate settlement
Regular way settlement
Uniform Settlement Statement
Settlement risk
Settlement rate
Settlement options
Settlement date
Dispute settlement mechanism
Structured settlement
Exercise settlement amount
Real Estate Settlement Procedures Act (RESPA)
Dispute Settlement Body
Settlement
Skip day settlement
Next day settlement
Bank for International Settlements (BIS)
cash settlement


 
All rights Reserved. Do not copy without permission. T4 Innovations Ltd