Trade Date Acc. vs. Settlement Date Acc. security, accounting, difference, accounting, difference, between, current, between, security, current

Chuckrox8

As you know, current GIPS requires trade date accounting and says T, T+1, T+2 and T+3 is OK. What is the difference between settlement date acc. and T+3? Which security is settled later than 3 days?

lcai

Not sure, can anyone clarify? Settlement and T+3 sound like the same thing to me.

NO EXCUSES

NakedPuts2011

The difference is obvious, but GIPS counts T+3 as trade date. I don't know a security which is settled within 4 or more days. Could be relevant for past terms.

mp3bu

The point here is that trade date could be considered either T+1, T+2 or T+3 under GIPS. But you can only choose one treatment only for all transactions. If you use settlement date it will be accounting inconsistency

wake2000

I think it shall mean that maximum 3 days is allowed for the processing of the record but the price recorded shall be the traded price on the trading date.

Windjammer

securities can be settled any day really, doesn't have to be normal settlement. And even normal settlement is different for different instruments. So set your trade date methodology and stick with it, GIPS is all about consistency.