What is rolling settlement?
The concept of "rolling settlement" is fundamental in trading. Here's a brief overview:
A Continuous Process: In a rolling settlement system, each trading day stands as a unique trading cycle. Trades executed that day are settled based on the net obligations incurred during the day.
The Settlement Duration: Trades adhering to the rolling settlement are resolved on a T+1 basis. This translates to the first working day post the transaction day.
Accounting for Holidays: It's noteworthy that trading holidays aren't included when deducing the settlement day.
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