Trading rules for US Treasury bonds
Trading Unit: Each US Treasury bond/note has a face value of $100 USD. The typical minimum purchase is $1,000 face value (10 units), with incremental purchases in multiples of $1,000 face value (10 units).
Trading Hours: Trading Days: 8:00 AM – 5:00 PM Eastern Time (ET). US Treasuries support T+0 trading (i.e., same-day buy and sell).
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.
- If the entered order price is lower than the prevailing market execution price, the order may fail to execute.
- If the entered order price is higher than the prevailing market execution price, the order will be executed at the best actual available market price.
Agency Model: In US Treasury transactions, uSmart Securities acts as a non-independent agent (commonly referred to in the industry as an agency model or brokerage model). Under this structure, uSmart Securities may charge fees or commissions paid or provided by investors, but does not earn any price spread/markup.
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, custody fees, etc.
Settlement Timeline: T+1 settlement.
