T plus two business days Starts Sept 5 2017

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Shakespeare
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Re: T plus two business days Starts Sept 5 2017

Post by Shakespeare » 13 Nov 2017 18:31

what's the worse that can happen if you make a mistake with settlement issues?
You can be charged interest at very high rates - happened to me once when I bought GICs (T+0) the day prior to maturity of a bond, forgetting that GICs are T+0 not T+1. The interest was forgiven after a phone call, but I never made that mistake again.
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Re: T plus two business days Starts Sept 5 2017

Post by Quebec » 13 Nov 2017 19:16

Shakespeare wrote:
13 Nov 2017 18:31
You can be charged interest at very high rates
That was in a registered account? Why did you not wait for the bond to mature before replacing it with a GIC? Why did the brokerage let you buy the GIC without cash in your account?
Imagefiniki, the Canadian financial wiki: a knowledge base of financial subjects written from a Canadian perspective

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Re: T plus two business days Starts Sept 5 2017

Post by Shakespeare » 13 Nov 2017 19:28

I thought the settlement was T+1 for the GIC.
“A wise man should be prepared to abandon his baggage at any time.” -- R.A. Heinlein, The Door Into Summer.

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Re: T plus two business days Starts Sept 5 2017

Post by Quebec » 15 Nov 2017 16:02

OK, I've updated the finiki article on Settlement with a new section, Practical implications. Please have a look and improve it, or report back here. Thanks!
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