Account Day
Definition
Formerly, the day on which all transactions made during the previous account on the London Stock Exchange were settled.
Since the account system was abandoned in 1996, transactions have to be settled within a few days.
Example
Example 1:
Similar to how the Nigerian Stock Exchange uses a T+3 settlement system today, the London Stock Exchange formerly had a designated account day where all trades from the entire previous period were settled at once, a much slower process by modern standards.
Example 2:
In 1980s London, a stockbroker who had bought and sold shares throughout the account period would wait until account day typically a Monday, to settle all outstanding transactions, with cash and shares changing hands only on that single designated day.