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?
Not sure, can anyone clarify? Settlement and T+3 sound like the same thing to me.
+Trade date : the date that asset is exchanged rights and obligations +Settlement date: the date when you pay cash Trade date could be settlement date or not. In either case, follow trade date. Accounting stuff bros.
But GIPS says T+3 is okay. If I trade on Tuesday I can still report Friday’s value.
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.
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
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.
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.