T+1 settlement
What is T+1 settlement?
T+1 means a trade settles one business day after the trade date ("T"): the buyer's cash and the seller's securities change hands on the next business day. US stocks have settled T+1 since 2024-05-28.
The meaning in one line
T is the trade date, the day the trade executes. +1 is one business day later. Settlement is when ownership and payment are final. Under T+2, the US rule from 2017-09-05 until 2024-05-28, it was two business days.
When did T+1 start?
In the US, SEC Rule 15c6-1 amendments (T+1) took effect on 2024-05-28 (SEC). Canada and Mexico moved at the same time. The EU moves on 11 October 2027, with the UK and Switzerland planning the same date: see T+1 in Europe and settlement cycles by market.
What about weekends and holidays?
Only business days count. For US stocks a business day needs both the stock market and the Federal Reserve open, so:
- A trade on Friday 2026-11-13 settles on Monday 2026-11-16.
- A trade on Wednesday 2026-11-25 settles on Friday 2026-11-27 (Thanksgiving is skipped).
- A trade on Friday 2026-10-09 settles on Tuesday 2026-10-13: the market is open on Columbus Day, but the Fed is closed.
More worked examples: when Friday and pre-holiday trades settle.
After-hours trades
Settlement counts from the trade date, the day the trade executes. Ask your broker how it dates extended-hours trades.
Work out a settlement date
curl "https://settledate.dev/v1/settlement-date?market=XNYS&trade_date=2026-11-25"import requests
r = requests.get("https://settledate.dev/v1/settlement-date", params={"market": "XNYS", "trade_date": "2026-11-25"})
print(r.json()["settlement_date"]) # 2026-11-27Free for NYSE, Nasdaq, London, Xetra and Tokyo without a key. Confirm critical dates with your broker or custodian.