When purchasing or selling a security or other financial instrument there are two key dates involved with the transaction. The first is the Trade Date which represents the date on which the order was executed and the second, the Settlement Date, or the date at which payment is made and the shares are transferred. The Settlement Date can vary by product type and country of listing. For example, U.S. stocks, bonds, securities options, mutual funds, futures and futures options all settle 1 business day after Trade Date.
For purposes of reporting positions on the trading platform and determining the margin requirement, the Trade Date is used. For purposes of determining interest credits and debits, the Settlement Date is used.
Please Note
- Cash balances will be reported on both a Trade Date and Settlement Date on the trading platform and activity statements, affording clients the opportunity to monitor these balances.