Nice! I thought it was currently 2 days though, not 3?
Interesting.
I just got a note from Charles Schwab saying that the Trade Settlement process is changing. Used to be 3 days to settle. Now will become “next day “ soon.
Here is what they wrote:
“The trade settlement period will be shortened to one day beginning May 28, 2024.
Trades executed on or after May 28, 2024 will settle on the next business day (T+1) for most U.S. and Canadian securities traded on U.S. exchanges. Currently, the settlement period is two business days after the trade date (T+2).
New shortened settlement period reduces risk.
This is an industry-wide change for most security transactions, which includes stocks, bonds, municipal securities, exchange-traded products, unit investment trusts, certain mutual funds and limited partnerships that trade on an exchange. The T+1 settlement period may benefit investors like you by reducing credit and liquidity risks present between the trade date and the settlement date.
Your next steps.
There are no actions for you to take. The new T+1 settlement period will automatically be applied for any new trades executed on or after May 28, 2024. There will also be no change to the settlement period for options or futures as they already use the T+1 settlement period.
“
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Nice! I thought it was currently 2 days though, not 3?
Tom
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