Fail


Fail
In common trading terms, if a seller does not deliver securities or a buyer does not pay owed funds by the settlement date, then the transaction is said to fail. In a stock exchange, this occurs if a stockbroker does not deliver or receive securities, within a specified time after a security sale or a security purchase. When a seller cannot deliver the contracted securities, this is called a short fail. If a buyer is unable to pay for the securities, this is called a long fail.

Presently, firms have three days after the date of a trade to settle stock transactions. Within this time frame, securities and cash must be delivered to the clearing house for settlement. If firms are unable to meet this deadline, a fail will occur. Settlement requirements for stock, options, futures contracts, forwards and fixed-income securities differ.

Fail is also used as a bank term when a bank is unable to pay its debt to other banks. The inability of one bank to pay its debt to other banks in interbank fund transfer systems, can potentially lead to a domino effect, causing several banks to become insolvent.


Investment dictionary. . 2012.

Synonyms:

Look at other dictionaries:

  • fail — vi 1: to be or become inadequate or unsuccessful esp. in fulfilling certain formal requirements even though one or more terms are left open a contract for sale does not fail for indefiniteness Uniform Commercial Code 2: to become bankrupt or… …   Law dictionary

  • Fail — (f[=a]l) v. i. [imp. & p. p. {Failed} (f[=a]ld); p. pr. & vb. n. {Failing}.] [F. failir, fr. L. fallere, falsum, to deceive, akin to E. fall. See {Fail}, and cf. {Fallacy}, {False}, {Fault}.] 1. To be wanting; to fall short; to be or become… …   The Collaborative International Dictionary of English

  • Fail — Saltar a navegación, búsqueda Fail Freguesia de Portugal …   Wikipedia Español

  • fail — fail·ing·ly; fail; fail·ure; jeo·fail; un·fail·ing; un·fail·ing·ly; un·fail·ing·ness; …   English syllables

  • Fail — Fail, n. [OF. faille, from failir. See {Fail}, v. i.] 1. Miscarriage; failure; deficiency; fault; mostly superseded by {failure} or {failing}, except in the phrase without fail. His highness fail of issue. Shak. [1913 Webster] 2. Death; decease.… …   The Collaborative International Dictionary of English

  • fail — [fāl] vi. [ME failen < OFr faillir, to fail, miss < L fallere, to deceive, disappoint < IE base * ĝhwel , to bend, deviate > Sans hválati, (he) loses the way, errs, Gr phēloein, to deceive] 1. to be lacking or insufficient; fall short …   English World dictionary

  • FAIL (N. du) — FAIL NOËL DU, seigneur de La Hérissaye (1520 1591) Magistrat breton, conseiller au parlement de Bretagne après des études qui lui ont fait faire un traditionnel tour de France des universités: Poitiers, Angers, Bourges et Avignon. Après avoir… …   Encyclopédie Universelle

  • Fail — Fail, v. t. 1. To be wanting to; to be insufficient for; to disappoint; to desert. [1913 Webster] There shall not fail thee a man on the throne. 1 Kings ii. 4. [1913 Webster] 2. To miss of attaining; to lose. [R.] [1913 Webster] Though that seat… …   The Collaborative International Dictionary of English

  • fail — early 13c., from O.Fr. falir (11c., Mod.Fr. faillir) be lacking, miss, not succeed, from V.L. *fallire, from L. fallere to trip, cause to fall; figuratively to deceive, trick, dupe, cheat, elude; fail, be lacking or defective. Related: Failed;… …   Etymology dictionary

  • fail — [v1] be unsuccessful abort, backslide, back wrong horse*, be defeated, be demoted, be found lacking*, be in vain*, be ruined, blunder, break down, come to naught, come to nothing, decline, deteriorate, fall, fall flat*, fall short*, fall through* …   New thesaurus

  • fail — ► VERB 1) be unsuccessful in an undertaking. 2) be unable to meet the standards set by (a test). 3) judge (a candidate in an examination or test) not to have passed. 4) neglect to do. 5) disappoint expectations: chaos has failed to materialize.… …   English terms dictionary


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