Same-Day Affirmation (SDA)

Same-Day Affirmation (SDA) refers to the process of confirming a trade on the same day it is executed, ensuring that all parties involved in the trade agree to the terms and details of the transaction. SDA is an important step in reducing settlement risk and ensuring efficient trade processing. By affirming trades on the same day, financial institutions can speed up the settlement process, reduce errors, and improve overall market efficiency.

Example

A financial institution confirms the details of a stock trade with its counterparty on the same day it is executed, ensuring a smooth settlement process.