Quick Answer
A trader correction fixes information in a trade report while preserving the relevant timing of the transaction. An as/of correction identifies the original trade date. A past-settlement-date correction is made after settlement has passed and must distinguish the original trade-date information from the later correction.
The key is to identify which date fact in the question controls the correction.
As/Of Corrections
- An as/of correction is a correction to a trade report that identifies the original trade date.
- The original trade date is the date to which the as/of correction relates.
- The correction points back to the original transaction date.
Past-Settlement-Date Corrections
- A past-settlement-date correction is made after the original transaction has passed its settlement date.
- The correction must distinguish the original trade-date information from the later correction.
- Settlement status is the defining fact: settlement has already passed.
Exam Tip: Gotchas
- An as/of correction is identified by its connection to the original trade date.
- A past-settlement-date correction is identified by the fact that settlement has already passed. The two labels test different date references.