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Definition

A securities trade in equities, bonds or other securities where either the seller fails to supply the security of the buyer fails to supply the cash within the required time-frame. The JSE has moved to T+3 which means that all trades must be settled within 3 trading days. Trades which are not so settled are called failed trades and the JSE has a procedure for dealing with them. When there is a failed trade, the stockbroker may have to execute a "buy-in" to obtain the necessary securities. With the advent of dematerialisation and the guarantees provided by most organised exchanges, failed trades where one of the parties to a trade fails to honour his/her side of the trade are almost unheard of. The JSE has not recorded a failed trade since it moved over to electronic securities trading.

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