The SRD differs from a futures market because it involves real shares that can be physically delivered. On a futures market, the underlying is often a derivative without physical delivery. Additionally, holders of a long SRD position can receive dividends if they request delivery before the ex-dividend date, which is not possible with futures contracts.

The spot market is characterised by rapid settlement of transactions. On Euronext Paris, this period is T+2 for equities, meaning the buyer pays and the seller delivers the securities two business days after order execution. This information is crucial for distinguishing the spot market from futures markets where settlement is deferred.

The Deferred Settlement Service (SRD) allows investors to cover only part of the value of their position. For eligible securities, the minimum cash coverage is generally 20%, enabling significant leverage. This information is crucial for understanding the specificities of the SRD compared to traditional markets.

Settlement between the investor and their intermediary under the SRD indeed takes place on the fourth trading day before the end of the calendar month (liquidation day). However, transactions take place on the Euronext spot market with T+2 settlement for securities. This distinction is essential for understanding how the SRD works.

On a futures market, the underlying asset is generally not physically delivered. Futures contracts are often settled through cash compensation. However, some contracts may provide for physical delivery, but this is not the general rule. This distinction is essential for understanding the nature of futures markets compared to spot markets.

Spot and futures markets differ in several ways. The spot market involves transactions with rapid settlement and full funds, while the futures market involves transactions with deferred settlement and a margin system.

The futures market relies on a margin system where the investor deposits a guarantee representing a fraction of the notional value of the position. This initial margin, recalculated daily (margin calls), allows large positions to be taken with limited funds, unlike the spot market where the full amount is required.

The SRD is a French-specific mechanism that allows investors to initiate a long or short position on eligible securities by paying only part of the position value. The financial intermediary finances the difference until the end of the trading month. Transactions take place on the Euronext spot market, but settlement between the investor and their intermediary is deferred.