T+1 Settlement Date

GoldDigger

GoldDigger

I just got this from RH

Starting May 28, 2024 the trade settlement period for stocks and ETFs will be just 1 day (T+1) instead of 2 days (T+2)

This is an industry wide change for most security transactions due to recent rule amendments from the Securities and Exchange Commission (SEC) and FINRA.

Yay!!!
 
GoldDigger said:
I just got this from RH

Starting May 28, 2024 the trade settlement period for stocks and ETFs will be just 1 day (T+1) instead of 2 days (T+2)

This is an industry wide change for most security transactions due to recent rule amendments from the Securities and Exchange Commission (SEC) and FINRA.

Yay!!!
More...

We've AI now... shouldn't settlement be real/time instant?
 
it should help avoid a repeat of the time RH had to disable trading on meme stocks because they didn't have enough collateral to post with the DTCC while waiting for the T+2 trades to clear.

Also I don't understand why there's a rule that they can't just use the customer's funds as collateral for the customer's GME purchase at the DTCC
 
ScroogeMcDuck said:
it should help avoid a repeat of the time RH had to disable trading on meme stocks because they didn't have enough collateral to post with the DTCC while waiting for the T+2 trades to clear.

Also I don't understand why there's a rule that they can't just use the customer's funds as collateral for the customer's GME purchase at the DTCC
More...


This isn't about RH, it is an SEC ruling.

I only mentioned RH because that's who sent me the email.

I have other broker accounts besides that one, they just
happened to be the first to send an email about this matter.

If you are having problems with RH, get another account.
 
ScroogeMcDuck said:
it should help avoid a repeat of the time RH had to disable trading on meme stocks because they didn't have enough collateral to post with the DTCC while waiting for the T+2 trades to clear.

Also I don't understand why there's a rule that they can't just use the customer's funds as collateral for the customer's GME purchase at the DTCC
More...

You need to remember that Citadel took a share in Melvin who was short GME. Citadel also had an exec on the board of DTCC who sets the capital requirements.

The whole thing was a clear ridiculous conflict of interest.
I've seen multiple articles talking about how DTCC "saved us" by upping those requirements, but I have yet to see any disclosure of what those requirements were or how they compared to requirements placed on groups like Citadel and Melvin.

IMO, the game was rigged in favor of one participant.

I'd be interested to see if the extra long settlement period still exists for brokers. It was something like T+14 if you read all the rules.
 
Is everybody ready for T+1 settlements.

It's just a couple of weekdays away as it begins the day after Memorial Day!

This has been in the works for 3 years and I am so excited because T+2 was a drag.

Good Luck with your trades everybody!!!
 
I've avoided stocks my whole life so T+3 is news to me. Let me see if i understand T+1.

Say i have $1000 and i'm looking to trade a $10 stock all day, in and out. Generally, i can buy and sell blocks of 100 shares. Ok, at 10:00 AM i buy 100 shares. At 11:00 AM i sell 100 shares. Lets call that a "cycle" of 100% of my capital. At 11:30 AM i buy 100 shares again, and sell them again at 12:30 PM. I do twice more having cycled 100% of my capital FOUR whole times during the day.

The way i understand T+1, i can cycle 100% of my capital every other day (or 50% once per day)?

What if i need to cycle 100% of my capital 30 times a day in a "cash" account?
 
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