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TAS (Trade at Settlement)

TAS activates at settlement as a live futures contract.

Trade at Settlement (TAS) is a type of futures trading mechanism that allows market participants to buy or sell a futures contract at a price linked directly to the official daily settlement price of the contract, plus or minus a specified differential. Rather than agreeing on an exact execution price at the time of the trade, participants agree to transact relative to the final settlement price determined by the exchange at the close of trading.

TAS trading is commonly used in energy, commodity, and financial futures markets where traders, hedgers, and institutional participants wish to reduce uncertainty around end-of-day pricing or align transactions with benchmark settlement values. Once the official settlement price is published, the TAS trade converts into a standard live futures position at the agreed settlement differential.

This mechanism is particularly useful for firms managing index exposure, portfolio valuations, or daily risk calculations tied to settlement prices. TAS can also improve execution efficiency and liquidity around market close periods while helping participants minimise slippage between executed prices and official settlement benchmarks.