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In finance, date rolling occurs when a payment day or date used to calculate accrued interest falls on a holiday, according to a given business calendar. In this case, the date is moved forward or backward in time such that it falls in a business day , according to the same business calendar .
If the spot date falls on the last business day of the month in the currency pair then the delivery date is defined by convention to be the last business day of the target month e.g. assuming all days are business days: if spot is at 30 April, a one-month time to expiry will make the delivery date 31 May. This is described as trading "end-end".
The need for day count conventions is a direct consequence of interest-earning investments. Different conventions were developed to address often conflicting requirements, including ease of calculation, constancy of time period (day, month, or year) and the needs of the accounting department.
For example, when settling a share transaction on the London Stock Exchange, this is set at trade date + 2 business days. [1] In the United States, the transfer period was changed from 3 to 2 days in 2017 and to 1 day in 2024. [2] It is not necessarily the same as value date (when the settlement amount is calculated).
A variation is the 52–53-week calendar. It is used by companies that want their fiscal year to always end on the same day of the week. Any day of the week may be used, and Saturday and Sunday are common because the business may more easily be closed for counting inventory and other end-of-year accounting activities.
The New York Fed publishes the new SOFR every business day. The new rates are posted in the morning and include the latest overnight rate along with the 30-, 90-, and 180-day average rates.
For the purpose of calculating an ex-dividend date, business days are days on which both the major stock exchanges and the banks in New York State are open. [8] Thus Columbus Day and Veterans Day are trading days, but not business days for calculating an ex-dividend date, since they are legal holidays and banks are not open.
The number of days between two dates, which is simply the difference in their Julian day numbers. The dates of moveable holidays, like Christian Easter (the calculation is known as Computus) followed up by Ascension Thursday and Pentecost or Advent Sundays, or the Jewish Passover, for a given year. Converting a date between different calendars.