As of May 28, 2024, most securities in the U.S. settle on a T+1 basis, meaning one business day after the trade date.
What changed?
Previously, stocks settled in two business days (T+2). The move to T+1 means:
- Faster access to your funds after selling
- Reduced time your money is tied up in settlement
- Lower counterparty risk in the market
What settles in T+1?
- Stocks
- ETFs
- Corporate bonds
- Municipal bonds
- Most mutual funds
Exceptions
Some securities still have different settlement times:
- U.S. Treasury securities: T+1
- Options: T+1
- Some mutual funds: T+1 to T+2