Markets · 6 pages · 12 min

Why T+1 is a calendar

T+1 means cash and securities are due one business day after the trade date, a schedule rather than a verdict.

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From the opening

T+1 names a settlement calendar on which the security and the cash are due one business day after the trade date. It is a schedule a market has adopted, not a judgment about the trade, and the plus counts business days rather than every page of a wall calendar. The opening covers due one business day later, holidays are not counted, and the trade date is not settlement.

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Inside

Due one business day later
Holidays are not counted
The trade date is not settlement
A shorter cycle is still a calendar
Where the idea stops applying
A distinction worth keeping

Sources

T+1 securities settlement cycle
Trade date versus settlement date

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Why T+1 is a calendar

From the opening

Inside

Sources

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