(4) Why does settlement occurs on T+2 (2 days after trade took place)?
Why is this gap inserted. Everyone knows lower the gap, lower are the chances of default. Moreover why is this gap still there considering the fact that exchange matches millions of order/bids in a second. Why not go ahead and complete the settlement?
I would need a rundown on topics (Probably can answer myself, but it would require detailed search and study of days)
Thanks,
AskQ
Why is this gap inserted. Everyone knows lower the gap, lower are the chances of default. Moreover why is this gap still there considering the fact that exchange matches millions of order/bids in a second. Why not go ahead and complete the settlement?
I would need a rundown on topics (Probably can answer myself, but it would require detailed search and study of days)
Thanks,
AskQ