Effective September 5th 2017, the financial industry will shorten the trade settlement cycle process that underlies a significant volume of U.S. financial activity. Specifically, the settlement cycle will shorten from three business days after the trade date (“T+3”) to two business days after the trade date (“T+2”).
After the industry completes the move from T+3 to T+2, certain processes related to your trading activity will change. Most notably, you will:
- receive payment faster following a sale of a security; and
- be required to provide funds more promptly to your broker following the purchase of a security.
- The implementation of T+2 settlement will have an effect on the due date of certain margin calls (cash calls, fed calls, maintenance calls, day trade calls, etc.) These calls will now be due within 4 business days. Vision will contact you with the details of any open margin calls.
If you have any questions about this, please contact your financial professional.