Settlement date is a securities industry term describing the date on which a trade (bonds, equities, foreign exchange, commodities, etc.)
For example, when settling a share transaction on the London Stock Exchange, this is set at trade date + 2 business days.
For instance, the back office may require a few days to make payment.
This gap (between valuation and settlement) is often written into the financial contract, although the actual settlement date can also differ from that originally specified because of problems or errors.
It is occasionally referred to as "contractual settlement date".