Trading Rules
Trading hours of US stocks
Other limits for placing US stocks orders
Fractional shares trading in the US stock market
How to place an order
How to modify/cancel an order
Whether use the pre and post-market price to calculate the market value and profit or loss of your position
Why should the placement of market orders be restricted
Withholding Tax on Publicly Traded Partnerships (PTP) Securities and Trading Arrangements
US Stock Moving to T+1 Settlement
Order Type
Recurring Investment
Option
Dividend Reinvestment Plan
1. What is the T+1 settlement cycle?
The transaction date, or T, is the date on which the operation of buying or selling securities is executed. The settlement date is the date on which the transaction is settled, i.e. the securities or funds are officially transferred. Under the new T+1 settlement cycle, all applicable securities transactions from US financial institutions will settle in one business day after their transaction date.
To learn more, click here.
Example
If you execute a transaction on Monday, it will settle on Tuesday (assuming Tuesday is not a holiday).
2. When will the T+1 settlement start?
The new T+1 settlement cycle will take effect from May 28, 2024 .
3. Which securities are applicable to the T+1 settlement cycle?
The T+1 settlement cycle will apply to the same types of securities transactions covered by the T+2 settlement cycle. These include stocks, bonds, municipal securities, exchange-traded funds, certain mutual funds, and limited partnerships traded on US exchanges. For the T+1 impacted product scope, see https://www.dtcc.com/-/media/Files/PDFs/T2/T1-Product-List-Jan-2024.pdf
*Note: The T+1 settlement cycle already applies to US stock options.
4. What does this mean for trading?
The new T+1 settlement cycle does not impact your trading.
5. How does this impact fund withdrawal requests?
You will have quicker access to your funds with the shortened settlement cycle for US stocks. For Australia and Hong Kong stocks, the settlement cycle remains T+2, meaning that you can withdraw your funds when they are settled two business days after the transaction date.
6. How does this impact the calculation of buying power?
The new T+1 settlement cycle does not impact the calculation of buying power.
7. Will this impact the settlement rules for currency exchange?
With the shortened settlement cycle for US stocks, you will have quicker access to your funds. This means that after selling a US stock position, you will be able to exchange the funds from the trade into other currencies one trading day earlier. For the maximum amount you can exchange, please refer to Amount Available in Currency Exchange.