From T+2 to T+1 Settlement: What Does It Mean for the Market? (May 31)

On May 28, the settlement cycle for stocks, bonds, and other securities in the US will change to the new T+1 rule, which means trade settlement will complete in 1 day.

Previously, the standard was T+2, which had been in place since 2017 when it was shortened from T+3. Shorter settlement times for the transfer of securities and cash between buyers and sellers reduces trade failures and record-keeping difficulties.