Life cycle of trade settlement
Trade Life Cycle The Securities Trade Lifecycle 4.1 You'll learn every aspect of trade settlement; You'll learn the importance, process, and methods of trade reconciliation; Requirements Knowledge of the English language. Participants are expected to have basic math knowledge coming into this course. Trade Life Cycle • From the Trade Origination to the Settlement • Trading – Trade Origination / Order Origination – Trade Execution • Operations • T+2 – Three days after the trade day • Settlement times varies based on the trade venue and other factors. 27 References - Books Settlement is the actual exchange of money and securities between the parties of a trade on the settlement date after agreeing earlier on the trade. Most settlement of securities trading nowadays is done electronically. Stock trades are settled in 3 business days (T+3), while government bonds and options are settled the next business day (T+1).