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, for example the securities or funds are officially transferred and held in your brokerage account. 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.
Example
If you execute a transaction on Monday, it will settle on Tuesday (assuming Tuesday is not a holiday).
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The new T+1 settlement cycle will take effect on May 28, 2024.
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 here. Essentially, all securities traded on US Exchanges will move to T+1 settlement.
*Note: The T+1 settlement cycle already applies to US stock options.
The new T+1 settlement cycle does not impact your trading. There is no material change to your trading activities as Moomoo already offers instant settlement. With the change, proceeds from transactions will be settled and available for withdrawal 1 day sooner. Trading will not be impacted and day trades will still fall under the same regulations as before.
Margin interest was formerly applied for the two days following the trade date due to our instant settlement feature. This accrual will now be reduced to one business day.
Proceeds from recent sales will be available for withdrawal one business day sooner.
The new T+1 settlement cycle does not impact the calculation of buying power.