Trading rules and fees for corporate bonds
- Trading Unit: Each corporate bond has a face value of $100 USD. Minimum purchase amounts vary across individual bonds and are subject to the specific terms agreed upon for each bond.
- Trading Hours: US Eastern Time Trading Days: 9:00 AM – 6:00 PM (ET).
- Execution Price: The buy price displayed in the app represents an estimated cost; final execution is subject to the price determined by the US clearing institution.
- Principal Capacity: In corporate bond transactions, uSmart Securities acts as a principal and may earn a price spread/markup, which is estimated not to exceed 1% of the transaction amount.
- Accrued Interest: The buyer of a bond is required to pay the seller interest that has accrued from the last coupon payment date up to the settlement date.
Calculation Formula:
Accrued Interest = Transaction Face Value × Coupon Rate ÷ Annual Payment Frequency × (Days from Last Payment Date to Settlement Date / Days in Single Payment Period [typically 182 days])
- Transaction Fees: Include, but are not limited to, commissions, platform fees (currently waived), third-party custody fees, etc.
- Settlement Timeline: Under normal circumstances, purchased bonds can be sold after T+2 settlement; proceeds from bond sales can generally be withdrawn or used to purchase bonds after T+2 settlement. "T" refers to a bond trading day; if a non-trading day is encountered, the timeline will be postponed accordingly. Under exceptional circumstances, bond trade settlement timelines may exceed T+2.
