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Paul Tracy

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Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 2 million monthly readers. While there, Paul authored and edited thousands of financial research briefs, was published on Nasdaq. com, Yahoo Finance, and dozens of other prominent media outlets, and appeared as a guest expert at prominent radio shows and i...

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Updated October 7, 2020

What is a Broken Date?

Broken dates, also known as "odd dates," are arbitrary maturity dates that do not necessarily match the duration of the bond, option, futures contract, forward contract or other maturing instrument.

How Does the Broken Date Work?

For example, let's assume that a futures contract for shares of Company XYZ is three months long and is issued on April 1. The regular maturity date would be 90 days later on July 1. However, if the contract has a broken date, it might mature on, June 28 or July 2. Likewise, its maturity could be in, say, 5 weeks when the typical date is 12 weeks.

Why Does the Broken Date Matter?

The finance world relies on standardized maturities for specific contract types. This results in consistent recordkeeping and reporting for investors and the rest of the financial world, making trading easier and less costly. When a contract has broken date, it is something of a "rogue" investment and requires extra care from the implicated financial services firms and investors who hold the securities.

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At InvestingAnswers, all of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Broken Date.
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