Trading day
Trading days (or trading days ) are days on which a stock exchange is open for trading.
General
Exchange days are generally based on the calendar and are specifically geared towards bank working days , because credit institutions are the most important trading participants for exchanges and therefore a time coordination makes sense. The trading days of the stock exchanges are shown in the trading calendar, which is published by the Frankfurt Stock Exchange at the end of each year for the coming year . In a negative selection, it lists the days on which no stock exchange trading takes place. In addition to Saturday and Sunday , this also includes New Year's , Good Friday , Easter Monday , Labor Day, Whit Monday , December 24th, Christmas Day and New Year's Eve . In addition, further stock exchange holidays can be specified in the trading calendar, for example for the 2017 calendar year the Day of German Unity and Reformation Day . On all other days, the stock exchanges are open for stock exchange trading.
Trading day and settlement day
Stock exchange law differentiates between trading and settlement days. Trading day ( closing day ) is the day on which the buyer and seller conclude a binding transaction on a trading object ( underlying ) on the stock exchange. Pursuant to Section 47 (1) WpHG, trading days are all calendar days that are not Saturdays, Sundays or, at least in one country, legally recognized national holidays. According to Section 33 (1) of the “Conditions for Transactions on the Frankfurt Stock Exchange”, the trading day is the day on which a stock exchange meeting takes place and all securities admitted to trading can be traded. In terms of accounting , the trading day is also the value date of a transaction, which differs depending on the type of security (see also the interest method ). However, there is no mutual settlement of a stock exchange transaction on the trading or exchange day . Only on the settlement ( settlement date ) which takes delivery of the underlying asset by the seller and the payment as compensation by the buyer. In the case of the - predominantly concluded - spot transactions , the settlement date is two trading days later than the trading day; in the case of futures transactions , it is delayed even further (usually 1 month to 12 months or more). There must be at least 2 trading days between the trading day and the fulfillment day, so that Saturdays, Sundays and public holidays are usually not included.
There are two exceptions to this. In the trading calendar, Whit Monday and the Day of German Unity are not trading days, but fulfillment days. This means that cash trades concluded two trading days before these holidays can be settled on these holidays. The same applies to forward transactions.
Holiday trading
Two trading days are public holidays and bank holidays at the same time . These stock exchange days are called holiday trading , in stock exchange jargon also known as "ghost hour". On these two trading days, which have existed since May 2000, banks have to provide staff , operate their securities trading systems , process customer orders, draw up daily balances and monitor their risk positions. This additional holiday work causes costs that are usually not covered by the income (due to the low sales) . The Federal Financial Supervisory Authority (BaFin) specifies the trading days within the meaning of Section 47 WpHG on its website in accordance with paragraph 2 of this provision.
The trading volume on the stock exchanges is significantly lower during holiday trading than on trading days that are also working days. This results in lower market liquidity , which carries the risk of higher price fluctuations.
International
Trading Day ( English "trade date" ), according to IAS 39.AG55 the day on which the recognizing companies the obligation to buy or sell an asset has been received. Settlement ( english "settlement date" ) is the day on which an asset is delivered to or by the reporting entity (IAS 39.AG56).
Web links
Individual evidence
- ↑ Originally there were 4 days of holiday trading
- ↑ Calendar of trading days. BaFin , accessed on May 14, 2018 .