U.S.A. and Canada: Moving towards a T+1 settlement cycle in 2024 – Update


Note: This Announcement, originally published on 22 February 2023, has been updated to include a link to “Frequently Asked Questions" to further understand the impact of T+1 settlement on the current post-trade operations and processes.

Clearstream Banking1 informs clients that on 15 February 2023, the U.S. Securities and Exchange Commission (the SEC) adopted rule changes and confirmed the implementation date of

28 May 2024

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 Canadian Capital Markets Association (CCMA) also highlighted the importance for Canada to align to the SEC timeline.


The financial services industry moved from a T+5 to T+3 settlement cycle in 1995 to reduce systemic risk and improve the operation of the U.S. clearance and settlement process. Subsequently, on 5 September 2017, the securities industry successfully transitioned from T+3 to T+2.

In early 2022, an Industry Steering Committee (ISC) and associated Industry Working Group (IWG) was formed to analyse the impacts of moving the U.S. securities markets to T+1 settlement as well as the associated risks and benefits of doing so. Market participants in both the U.S. and Canada consequently continue to progress towards implementing a T+1 settlement cycle.


According to the ISC, the primary anticipated benefits for the investors will be as follows:

  • Reduce credit and counterparty risk particularly during periods of high volume and volatility;
  • Operational process improvements via infrastructure modernisation and standardisation of industry processes;
  • Increased market liquidity and lower collateral and margin requirements;
  • Reduce corporate action claims.

Impact on clients

Clearstream Banking is currently analysing the impact of the transition needed to its systems and business processes to support a seamless transition from T+2 to T+1.

Further to its internal assessment, Clearstream Banking will update clients on:

  • Any potential impacts on the various services, that is, settlement, cash, income and corporate actions; and
  • At a later stage, the transition timeline for the settlement process.

Clearstream Banking recommends that clients review publications issued by the U.S. and Canadian competent authorities and assess the impacts of the shortened settlement cycle.

Further information

For further information, clients may contact Clearstream Banking Client Services or their Relationship Officer.

1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany, and registered in Register B of the Amtsgericht Frankfurt am Main, Germany, under number HRB 7500.