What is the Trade Date?
The Trade Date is the date on which a trade in a financial instrument was concluded on the relevant market or venue. The Trade Date and the Settlement Date may differ.
What is the Settlement Date?
The Settlement Date is the date on which obligations under a trade are fulfilled in accordance with the rules of the relevant market and financial instrument. Depending on the transaction, financial instruments are credited or debited and the corresponding cash movement occurs on this date. The settlement date for a specific trade is shown in the “Executed Trades” section of the Custody Report.
Why isn't a purchased financial instrument yet included in the actual balance in the Custody Report?
If settlement on the trade has not completed, the Broker Report reflects the planned increase in the position, while the actual on-record balance in the Custody Report will change after the settlement date.
Why is a sold financial instrument still included in the actual balance in the Custody Report?
Until settlement on the sale completes, the actual on-record balance is retained. Once the settlement date arrives, the financial instrument will be debited in accordance with the transaction's accounting logic.
T+2 example
- Monday (T): a purchase trade for 100 shares is concluded. The Broker Report may reflect the planned change in the position.
- Tuesday (T+1): settlement has not yet completed; the planned and actual balances may differ.
- Wednesday (T+2, assuming no non-business days): settlement completes; the actual on-record balance in the Custody Report changes accordingly.