A one-business-day settlement timetable became standard for most U.S. securities trades on May 28, 2024, replacing the previous two-day cycle.
That cycle is known as T+1. “T” marks the trade date, while “+1” means settlement generally follows on the next business day. Settlement is the point at which a transaction is completed after the trade is agreed.
Most U.S. securities trades switched to T+1 on May 28, 2024. The earlier T+2 standard generally put settlement two business days after the trade, so the change cut one business day from the standard cycle.
A trade agreed on Monday would generally settle Tuesday under T+1, provided both are business days. Under the former T+2 timetable, it would generally have settled Wednesday.
