Advanced English Dialogue for Business – Fail to deliver

Listen to a Business English Dialogue About Fail to deliver

Thomas: Hey Gabrielle, have you heard about “fail to deliver” in finance?

Gabrielle: No, I haven’t. What does it mean?

Thomas: “Fail to deliver” occurs when a seller fails to deliver securities to the buyer by the settlement date, often due to logistical or administrative issues.

Gabrielle: Does “fail to deliver” happen frequently?

Thomas: It can happen occasionally, especially during periods of high trading volume or when there are mismatches in the delivery process.

Gabrielle: What are the consequences of “fail to deliver”?

Thomas: It can lead to delays in completing transactions and may create uncertainty in the market, but regulators closely monitor and address instances of “fail to deliver” to maintain market integrity.

Gabrielle: How do regulators handle instances of “fail to deliver”?

Thomas: Regulators may impose fines or penalties on parties responsible for “fail to deliver” and implement measures to ensure timely settlement of trades.

Gabrielle: Is there anything investors can do to protect themselves from “fail to deliver”?

Thomas: Investors can work with reputable brokers and stay informed about settlement procedures to minimize the risk of encountering “fail to deliver” situations.

Gabrielle: Are there any regulations in place to prevent “fail to deliver”?

Thomas: Yes, regulators enforce rules and regulations to promote timely settlement of trades and reduce the likelihood of “fail to deliver” occurrences.

Gabrielle: Thanks for explaining, Thomas. It’s important to understand the potential risks in the financial markets.

Thomas: You’re welcome, Gabrielle. Being aware of “fail to deliver” and its implications can help investors make more informed decisions when trading securities.