Settlement Date is a securities

Security (finance)

A security is generally a fungible, negotiable financial instrument representing financial value. Securities are broadly categorized into:* debt securities ,* equity securities, e.g., common stocks; and,...

 industry term describing the date

Calendar date

A date in a calendar is a reference to a particular day represented within a calendar system. The calendar date allows the specific day to be identified. The number of days between two dates may be calculated. For example, "24 " is ten days after "14 " in the Gregorian calendar. The date of a...

 on which a trade

Trade

Trade is the transfer of ownership of goods and services from one person or entity to another. Trade is sometimes loosely called commerce or financial transaction or barter. A network that allows trade is called a market. The original form of trade was barter, the direct exchange of goods and...

 (bonds, equities, foreign exchange, commodities etc) settles. That is, the actual day on which transfer of cash or assets is completed.

It is not necessarily the same as value date

Value date

Value date in finance is the date when the value of an asset that fluctuates in price is determined. The value date is used when there is a possibility for discrepancies due to differences in the timing of asset valuation...

 (when the settlement amount is calculated). For instance, the back office

Back office

A back office is a part of most corporations where tasks dedicated to running the company itself takes place. The term "Back office" comes from the building layout of early companies where the front office would contain the sales and other customer-facing staff and the back office would be those...

 may require a few days to make payment

Settlement (finance)

Settlement of securities is a business process whereby securities or interests in securities are delivered, usually against payment of money, to fulfill contractual obligations, such as those arising under securities trades....

. This gap (between valuation and settlement) is often written into the financial contract

Contract

A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...

, although the actual settlement date can also differ from that originally specified because of problems or errors.

It is occasionally referred to as Contractual Settlement Date.