Fail
A transaction that has not been settled before a deadline. Investopedia Says:
Presently, firms have three days after the date of a trade to settle stock transactions. Within this timeframe, securities and cash must be delivered to the clearing house for settlement. If firms are unable to meet this deadline a fail will occur.
Settlement requirements for stock, options, futures contracts, forwards, and fixed-income securities differ. Related Terms:
Aged Fail
Clearing House
Fixed-Income Security
Forward Contract
Futures Contract
Option
Securities and Exchange Commission - SEC
Settlement Date
Trade Date |