Settlement is when the trade completes: the buyer pays and the seller delivers. It normally comes after the trade date. In the US, secondary-market bills normally settle one business day after trade, and auction purchases settle on the announced issue date.
Dates that matter
- Trade date: you agree the price.
- Settlement date: cash and the security change hands, and days to maturity are counted from here.
- Maturity date: the issuer pays face value through the holding chain.
- Availability date: when your own provider makes the proceeds usable, which may be later.
If a maturity date falls on a non-business day, payment generally moves to the next business day. Your income does not rise for that delay, so the wait lowers your effective yield slightly.
Key points
- Settlement usually comes after the trade date.
- Days to maturity are counted from settlement.
- Proceeds may become usable later than the maturity date.
General information only. It is not investment, legal or tax advice. Details vary by market and can change, so check the issuer’s current rules.