FTDs (failures to deliver)

Failures to deliver (FTDs) are regulatory reports filed when a broker or securities firm cannot deliver the securities or payments to complete a trade within the required time frame, usually two business days after the trade date. This often occurs with stock or bond transactions, indicating a delay or problem in fulfilling the agreement. FTDs can reflect issues like short-selling, settlement disruptions, or liquidity problems. Regulators monitor FTDs to identify market irregularities, ensure proper settlement, and protect investors by maintaining transparency in the trading process.