notice day

notice day definition - finance
The day that begins the process of notifying futures traders that they will have to fulfill the terms of their futures contracts. In the futures market, if a contract is not closed out by the notice day, the holder will receive a notice. At this point, the clearing corporation that settles trades must match the buyer with the oldest long (the person who has held the contract the longest) or another trader who is randomly chosen by another method. Both parties to the transaction are notified.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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