T+1 settlement is coming. What is it, and how will it affect margin customers? The settlement cycle across the financial securities industry for certain transactions will go from T+2 to T+1 effective May 28, 2024.
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The T+1 settlement applies to securities transactions that are currently covered by T+2 settlement, including transactions for stocks, bonds, municipal securities, exchange-traded funds, certain mutual funds, and limited partnerships that trade on an exchange.* Additionally, margin interest begins to accrue on the settlement date, so this change will accelerate margin interest accrual on settled margin debit balances by one business day. The due dates for certain margin calls will also be accelerated by one business day. The new due dates are as follows:
Federal due date: T+3
House due date: T+3
Exchange due date: T+2
Minimum equity due date: T+3
*Please refer to the Securities and Exchange Commission website at SEC.gov and the Depository Trust & Clearing Corporation website at DTCC.com for a complete list.
Federal due date: T+3
House due date: T+3
Exchange due date: T+2
Minimum equity due date: T+3
*Please refer to the Securities and Exchange Commission website at SEC.gov and the Depository Trust & Clearing Corporation website at DTCC.com for a complete list.
