Settlement (finance)

Settlement of securities is a business process whereby securities or interests in securities are delivered, usually against (in simultaneous exchange for) payment of money, to fulfill contractual obligations, such as those arising under securities trades. In the United States, the settlement date for marketable stocks is usually 3 business days or T+3 after the trade is executed, and for listed options and government securities it is usually 1 day after the execution. In Europe, settlement date has recently been adopted as 2 business days settlement cycles T+2.

Settlement (finance)

Settlement of securities is a business process whereby securities or interests in securities are delivered, usually against (in simultaneous exchange for) payment of money, to fulfill contractual obligations, such as those arising under securities trades. In the United States, the settlement date for marketable stocks is usually 3 business days or T+3 after the trade is executed, and for listed options and government securities it is usually 1 day after the execution. In Europe, settlement date has recently been adopted as 2 business days settlement cycles T+2.