T+1

T+1, or Trade Date plus One Day, is the standard settlement cycle for most securities transactions, including equities, corporate bonds, municipal bonds, and certain unit investment trusts, which mandates that the transfer of securities ownership and funds must be completed one business day after the trade execution date. This accelerated settlement framework, which became mandatory in the United States on May 28, 2024, significantly reduces counterparty risk, lowers margin requirements, and increases market liquidity and capital efficiency compared to the previous T+2 cycle.