How long is the settlement cycle for US trades?

T+1 Securities Settlement- What does the change mean for you?

Beginning on May 28, 2024, the new standard for equity settlement will become the following business day after a trade. This will now be T+1 settlement compared to the previous T+2 settlement duration.

Trade date is the day your order to buy or sell a security is executed; Settlement date is the day your order is finalized and on which funds and the securities must be delivered. Previously, the settlement date occurs two business days after the trade date. However, due to recent rule amendments from the U.S. Securities and Exchange Commission (SEC) and FINRA the settlement cycle will be one day shorter.

Where Can I Learn More?

For more information about the T+1 settlement, please visit the DTCC’s Shortening the Settlement Cycle page.