In New York, the US markets are poised for a significant change on Tuesday as the settlement period for US equities, corporate municipal bonds, and other securities will be reduced to one day, or T+1, following the implementation of a new rule by the Securities and Exchange Commission in February 2023.
During a trade settlement, the buyer obtains the security while the seller receives payment, with this process being overseen by the Depository Trust Company (DTC), a branch of the Depository Trust and Clearing Corporation.