RE: Divi29 Aug 2023 14:48
SETS is automatic execution, meaning no Market Maker is needed, but still need a broker or someone with direct market access to put the trade on the book (I’m generalising a bit there to keep it brief).
But payment (settlement) is still T+2 for both sides of the trade, which is standard for most UK market trades (although I believe some brokers offer longer periods for a fee?). An online broker will normally deduct (or sometimes add) a ‘transaction’ from/to your trading credit on the day of the trade though to help you keep track of what you will have available, but the actual cash transaction won’t go through their accounts until T+2 and that’s what the register is based on.
You previously mentioned “divi chasers will put in a sell order for 8am the day following RD” – but it’s normally a sell order on XD day as that’s when the gap down should happen. That sometimes triggers further sells during the day (and subsequent days) so an early sell order may get you a higher price at open and then can sometimes buy back at a lower price later. Doesn’t always work out that way though.