Multiple choice general knowledge

In the rolling settlement cycle, auction trading for shortages normally is on:

  1. one day after trade day.

  2. the second day after the settlement day.

  3. the settlement day.

  4. the first day after the settlement day.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

In rolling settlement, auction trading for shortages occurs on T+1 day after settlement day (the first day after settlement). This allows the clearing house to procure shares to meet delivery obligations. The settlement day itself is for regular settlement, not auction.

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