U.S. Stock Market Adopts T+1 Settlement Cycle on May 28, 2024

Starting May 28, 2024, the U.S. stock market has transitioned to a T+1 settlement cycle, settling trades one business day after the trade date instead of the previous T+2 cycle. This change, implemented under new SEC rules, marks the fastest settlement time in a century. The SEC anticipates a possible short-term increase in failed transactions but believes the transition will ultimately benefit investors by reducing risk, improving liquidity, and enhancing market efficiency. The change requires full-service or online brokerage firms to receive payment no later than one business day following the trade date. The transition is closely monitored by the SEC and involves @The_DTCC.