Personal Finance & Money Stack Exchange
Personal Finance & Money Stack Exchange

Questions tagged [settling-and-clearing]

For questions pertaining to the process of changing ownership between parities of assets usually regarding financial assets.

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What does "Settling" mean in investing jargon?

When reading upon the definition of Chinese B-shares, I have a question about the following piece of text: The term B-shares refers to equity share investments in companies based in China. These shares trade on two Chinese stock exchanges: the…
Psychotechnopath
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Is there a maximum time a check can take to bounce, in the US?

This questions is inspired by How to make sure a payment is actually received and will not bounce, using Paypal, Stripe or online banking respectively? One thing that is mentioned in the above thread (as well as many others both here and elsewhere)…
Robert Columbia
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Short an option - random assignment?

I'm still really new to options but I'm trying to understand this concept of assignment. Let’s say I’m short a call of Microsoft at a strike of 80 set to expire in a quarter. Microsoft surges for one day, going up to 86. Someone long a call for the…
rb612
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How is it possible for a trade to be executed by a broker but cleared by another broker?

The Interactive Brokers U.S. Microcap Stock Restrictions page says: Execution-only clients (i.e., execute trades through IBKR, but clear those trades elsewhere) may not trade U.S. Microcap Stocks within their IBKR account. (IBKR may make exceptions…
Flux
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T, T+1, T+2 trading modes

Why are there different settlements modes T, T+1, T+2? why can't everything be settlement "today" T0? I understand what the difference is, but I don't understand why people did this and in what situations one mode can be useful, unlike others?
RoyalGoose
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How do I determine whether or not a stock is DTC-eligible?

From my understanding, exchange-listed stocks are all DTC-eligible (DTC meaning Depository Trust Company), so my question is more about the securities that trade over-the-counter. How can I check whether or not the stock of a particular company is…
Flux
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Using unsettled cash to buy securities on Interactive Brokers

From Interactive Broker's Availability of proceeds in a 'Cash' type account article: Account holders who wish to have access to settled funds prior to the settlement day may do so by electing an account type of 'Margin'. Under this account type…
Paul Razvan Berg
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What exactly is the difference between a clearing house and a counterparty clearing house?

I know this may sound like a stupid question but I have not yet found an adequate definition of the two that can clearly tell me the difference between them.
user64832
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What is street-side booking?

What is the meaning of the term "street-side bookings" in the context of broker operations? I suspect it has something to do with the Central Counter Party Clearing outlined in https://en.wikipedia.org/wiki/Central_Counterparty_Clearing .
pyjuli
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How to properly understand international wire transfers?

I am having a ridiculous time with international (inwards, to Australian account) wire transfers. They have about a 50% chance of succeeding, and I don't know who is being honest with me when things go wrong. It has been this way for years. I've…
Grant
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When a public company (e.g. Twitter) goes private, when do shareholders receive funds?

I was wondering what is the reasonable time frame when ordinary investors receive the money from a sale of a company that is acquired to become private. I see Twitter was acquired on Thursday (Oct 27, 2022), but no funds have been received. I see a…
puzzled
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Why are shares not settled on the same day?

I know the settlement process but I am still confused about why trades/shares are settled on T+2nd day. Why the settlement is not done at the very moment we make the trade? Any clarification on this will be greatly helpful. Thank you.
Atharva
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Which CSD holds my stocks when bought on foreign exchange?

My question is best illustrated via an example: My custodian (a.k.a my "bank") is located in Switzerland I buy a share on the London Stock Exchange The trade is cleared through LCH.Clearnet The trade is finally settled Which central securities…
Christoph Baumann
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Why does a stock exchange need a clearing firm?

I see on wikipedia that "DTCC settled the vast majority of securities transactions in the United States and close to $1.7 quadrillion." OK, so it seems that DTCC is the clearing house that everyone cares about. Then I read that the NYSE and Nasdaq…
MrBlob
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Settle stocks on the same day [T] instead of [T+2/3]

Is it possible to have same day settlement on the stock markets by using more efficient processes and technology? I know that the T+3 settlement was earlier replaced by the T+2 settlement process. Can we improve it further to settle stocks the same…
Sudeep
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