Generic dates
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The trade date is the day when a transaction is considered to have been completed. Normally the trade date is the same date as the record date, however, in some instances the trade date can be an earlier date than the record date but never a later date.
Settle date
Settle date is the day when cash and securities change owners; normally this is three days after the trade date. There are exceptions however like Germany, trading of funds and currencies. The lingo within the industry defines this day as “S” and when referring to the day before settle the definition “S-1” is often used. In the same way the trade date is defined as “T” and since settle often takes place three days after trade the settle date could be referred to as “T+3”.
Value date
This is the day when cash starts earning
interest. Value date is often described in
relation to settle date. The value date can be the same date as settle date although it can occur both before and after the settle date
depending on the direction of the cash
transfer.
Example
A customer buys 1,000 Apple shares the 14th of January, the bank neglects to book the trade on that date and instead the trade is booked the day after. In this case the trade date is the 14th but the record date is the 15th.
Dates relating to structured products
When referring to trading of structured products there are a few more important date definitions to consider.
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Expiration date is the date when a structured product expires and is liquidated and the security is replaced with cash based on the expiration value of the product.
View file
concepts_within_securities_dates.pdf