1. General: Deadline by which an executed order must be consummated: the day on which the seller must deliver what was sold and purchaser must pay for what was bought.
2. Financial markets: Date on or before which funds and instruments must exchange hands between a buyer and a seller; as opposed to the transaction date (trading date) on which an order is executed. Settlement date follows the trading date by a fixed or specified number of business days; usually three days for stocks (shares) and bonds, and one (next) business day for government securities and listed options. See also maturity date and settlement option. Also called settlement day.
Use settlement date in a sentence