US trades now settle one day after Trade date rather than two. This started on 28 May, 2024. Public Trust's Corporate Trustee Services clients can confidently navigate the T+1 changes, knowing they have access to our support and solutions for the timely settlement of trades.
What is T+1 settlement?
The new T+1 rule means US and Canadian stock trades now settle one day after trade date, rather than two – from T+2 to T+1. For a securities transaction (for example, a stock purchase), the ownership transfer and the funds exchange occurs more quickly.
When did this happen?
The change took effect on 28 May 2024.
Why is the market moving to T+1?
The shift to T+1 aims to reduce risk, improve market efficiency, and align with international standards. A faster settlement time lowers the possibility of issues arising between the trade date and settlement.
How will Public Trust support its clients?
We are here to support you through these changes. To keep pace with T+1, we have automated our settlement processes. This means trades can be settled smoothly and efficiently within the shortened T+1 cycle.
CTS continues to monitor regulatory developments related to the transition and ensure compliance with new rules and requirements imposed by regulatory bodies such as the Financial Markets Authority. For more information, please contact us.
How will I be impacted by this change?
For most investors, the day-to-day experience of investing should remain largely the same, albeit you need to settle trades a day early. However, all trades are also required to be affirmed at the DTCC by 9pm EST on trade date. It's important to be aware of the affirmation deadlines when trading on Fridays or around public holidays, as some trades may need to be processed on Saturday NZT.
Read more: What will the T+1 market settlement changes mean for NZ? David Callanan, Public Trust GM Corporate Trustee Services considers the impact of the changes through a local lens.
Please read our Frequently Asked Questions below for more detail.
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