In June 2024, stock/ETF trades will settle in one business day

[OverThinkMuch]

This SEC press release from Feb 15 suggests we're going to see ETFs and stocks settle in half the time. I think this even means options trades.

The Securities and Exchange Commission today adopted rule changes to shorten the standard settlement cycle for most broker-dealer transactions in securities from two business days after the trade date (T+2) to one (T+1)
...
The compliance date for the final rules is May 28, 2024.

https://www.sec.gov/news/press-release/2023-29

 

[pb4uski]

About time... but why not just immediately or after the close on the same business day?

 

[OverThinkMuch]

About time... but why not just immediately or after the close on the same business day?

I wish. When do you think that could happen? A decade?

In years past I tripped on Vanguard's enforcement of "regulation t", which means you can't do too much buying and selling of the same security before settlement ("free riding", which I solved by having a margin account). I'm happy to see that window shrink from T+2 to T+1.

 

[MarieIG]

Also happen to see the window shrink.