T+3

T+3 is the historical settlement cycle for financial market transactions, primarily in the United States, which mandated that the transfer of securities and funds between buyer and seller must be completed on the trade date (T) plus three business days (+3). This three-day window was the standard for most stocks and corporate and municipal bonds until 2017, when the U.S. Securities and Exchange Commission (SEC) shortened the cycle to T+2 to reduce counterparty and systemic risk.