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Why do gilts mature at the weekend?

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  • Hoenir
    Hoenir Posts: 7,742 Forumite
    1,000 Posts First Anniversary Name Dropper
    edited 13 June at 5:51PM
    wmb194 said:
    Hoenir said:
    CREST uses BACS. End of the day the cash has to pass through the bank clearing system to reach the designated bank account. 
    Are you saying that even if Treasury uses CREST, the funds will be cleared by the time they reach Interactive Investor? And that ii has no excuse not to give customers cleared funds?
    It'll be the same as dividend and interest payments i.e. the money will be in the right place first thing in the morning. This is all just the usual* broker shenanigans to rip off their customers a day or two's interest. 


    ???

    The money is credited the day it is received. Even if the transaction isn't posted to a later date. The platform has to reconcile and apportion the total amount received across the various participating investors. Some days are far busier than other others transaction wise. 


  • wmb194
    wmb194 Posts: 4,920 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    edited 13 June at 6:39PM
    Hoenir said:
    wmb194 said:
    Hoenir said:
    CREST uses BACS. End of the day the cash has to pass through the bank clearing system to reach the designated bank account. 
    Are you saying that even if Treasury uses CREST, the funds will be cleared by the time they reach Interactive Investor? And that ii has no excuse not to give customers cleared funds?
    It'll be the same as dividend and interest payments i.e. the money will be in the right place first thing in the morning. This is all just the usual* broker shenanigans to rip off their customers a day or two's interest. 


    ???

    The money is credited the day it is received. Even if the transaction isn't posted to a later date. The platform has to reconcile and apportion the total amount received across the various participating investors. Some days are far busier than other others transaction wise. 


    The official payment date is a commitment and is the tax arising date. It's not a, 'we'll pay you when we get around to it' date. It's a rare occurrence for it not to be credited to brokers' accounts on that date, and a serious issuer like HMG is going to take those dates and payments very seriously. It'll be paid on time.

    You're far too tolerant of bad behaviour; I'm in a situation at the moment where I'm waiting for iWeb to credit many tens of thousands of pounds that I know was paid by the issuer on the due date, yesterday, but it says I'll have it, 'early next week.' I know it has the money. Another of my brokers paid out on the same issue this morning and other people tell me they received the money with their (different) brokers yesterday. This is a blue chip issuer. iWeb and the other brokers have had months to prepare. It isn't 1985.
  • IanManc
    IanManc Posts: 2,446 Forumite
    Part of the Furniture 1,000 Posts Photogenic Combo Breaker
    wmb194 said:
    Hoenir said:
    wmb194 said:
    Hoenir said:
    CREST uses BACS. End of the day the cash has to pass through the bank clearing system to reach the designated bank account. 
    Are you saying that even if Treasury uses CREST, the funds will be cleared by the time they reach Interactive Investor? And that ii has no excuse not to give customers cleared funds?
    It'll be the same as dividend and interest payments i.e. the money will be in the right place first thing in the morning. This is all just the usual* broker shenanigans to rip off their customers a day or two's interest. 


    ???

    The money is credited the day it is received. Even if the transaction isn't posted to a later date. The platform has to reconcile and apportion the total amount received across the various participating investors. Some days are far busier than other others transaction wise. 


    The official payment date is a commitment and is the tax arising date. It's not a, 'we'll pay you when we get around to it' date. It's a rare occurrence for it not to be credited to brokers' accounts on that date, and a serious issuer like HMG is going to take those dates and payments very seriously. It'll be paid on time.

    You're far too tolerant of bad behaviour; I'm in a situation at the moment where I'm waiting for iWeb to credit many tens of thousands of pounds that I know was paid by the issuer on the due date, yesterday, but it says I'll have it, 'early next week.' I know it has the money. Another of my brokers paid out on the same issue this morning and other people tell me they received the money with their (different) brokers yesterday. This is a blue chip issuer. iWeb and the other brokers have had months to prepare. It isn't 1985.
    I have the same issue with Vanguard.

    The interest on my holding of Vanguard Sterling Short-Term Money Market Fund Inc OEIC was distributed by Vanguard on 30 May yet they only managed to credit it to my Vanguard SIPP on 12 June, which is the latest in the month it has ever been. 
  • wmb194
    wmb194 Posts: 4,920 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    edited 13 June at 8:13PM
    IanManc said:
    wmb194 said:
    Hoenir said:
    wmb194 said:
    Hoenir said:
    CREST uses BACS. End of the day the cash has to pass through the bank clearing system to reach the designated bank account. 
    Are you saying that even if Treasury uses CREST, the funds will be cleared by the time they reach Interactive Investor? And that ii has no excuse not to give customers cleared funds?
    It'll be the same as dividend and interest payments i.e. the money will be in the right place first thing in the morning. This is all just the usual* broker shenanigans to rip off their customers a day or two's interest. 


    ???

    The money is credited the day it is received. Even if the transaction isn't posted to a later date. The platform has to reconcile and apportion the total amount received across the various participating investors. Some days are far busier than other others transaction wise. 


    The official payment date is a commitment and is the tax arising date. It's not a, 'we'll pay you when we get around to it' date. It's a rare occurrence for it not to be credited to brokers' accounts on that date, and a serious issuer like HMG is going to take those dates and payments very seriously. It'll be paid on time.

    You're far too tolerant of bad behaviour; I'm in a situation at the moment where I'm waiting for iWeb to credit many tens of thousands of pounds that I know was paid by the issuer on the due date, yesterday, but it says I'll have it, 'early next week.' I know it has the money. Another of my brokers paid out on the same issue this morning and other people tell me they received the money with their (different) brokers yesterday. This is a blue chip issuer. iWeb and the other brokers have had months to prepare. It isn't 1985.
    I have the same issue with Vanguard.

    The interest on my holding of Vanguard Sterling Short-Term Money Market Fund Inc OEIC was distributed by Vanguard on 30 May yet they only managed to credit it to my Vanguard SIPP on 12 June, which is the latest in the month it has ever been. 
    Wow, that's really ridiculous, and particularly as it's its own fund. 

    I've never owned that fund but in my experience for OEICs HSBC had a c.95% record for paying interest and dividends first thing in the morning on the due date so it can be done.
  • GeoffTF
    GeoffTF Posts: 2,035 Forumite
    1,000 Posts Third Anniversary Photogenic Name Dropper
    IanManc said:
    The interest on my holding of Vanguard Sterling Short-Term Money Market Fund Inc OEIC was distributed by Vanguard on 30 May yet they only managed to credit it to my Vanguard SIPP on 12 June, which is the latest in the month it has ever been. 
    Vanguard is in a class of its own for tardy dividend payments. It is both disgracefully slow and totally unrepentant. They say that they are allowed 10 days to pay dividends, and do not seem to care about their reputation.
  • OldScientist
    OldScientist Posts: 823 Forumite
    Fourth Anniversary 500 Posts Name Dropper
    Of oblique relevance and interest (YMMV), US Treasuries were (are?) occasionally issued with a maturity (and coupon) date of 29th February. Since the coupons were paid the next working day (i.e., 1st March at the earliest), unlike the problem with weekends and other bank holidays, this curiosity probably had little effect on bond holders.

    I changed the Vanguard STMMF from inc to acc (once they started an acc class) because of the slowness with which dividends were sometimes paid and I've often found it quicker to obtain the proceeds from selling the units.

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