Series 27: When-Issued Contracts

When-Issued Contracts

A when-issued contract is a contract between a buyer and seller to transact in a security that has not yet been or may never be issued. U.S. Treasury stocks, stock splits, and new issues of stocks and bonds are often traded on a when-issued basis. “When-issued” is shorthand for the more formal term “when, as and if” transaction. When-issued contracts have their own clearing and settlement rules.