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What does "FTD" mean in trading?

Asked by Anonymous Sep 02, 2026 1 views 1 answers
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Answered Sep 02, 2026

In financial markets and securities trading, FTD stands for Fail-to-Deliver. This occurs when a market participant—such as a broker, dealer, or investor—fails to deliver securities or financial instruments on the agreed-upon settlement date after a trade has been executed. While many FTDs are resolved quickly through standard administrative clearing procedures, persistent or high volumes of fails-to-deliver in specific equities can sometimes indicate naked short selling practices, liquidity bottlenecks, or operational clearing inefficiencies tracked closely by regulatory authorities like the Securities and Exchange Commission.

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