As of Monday, 27 May, in Canada and Mexico, and in the United States as of Tuesday, 28 May, executed trades are settled (=securities and cash are exchanged between the parties to the trade) with a settlement cycle of T+1 instead of the current T+2. After the change, customers' cash in securities transactions is transferred on the following day after the trade. Cash from a transaction is paid to the account at around 9 a.m.
Other markets, including Europe, will still use the standard T+2 settlement cycle.
Example
Old T+2 cycle:
Wednesday, 24 April 2024: The investor purchases US stocks.
Friday, 26 April 2024: The sum is charged from the investor's cash account and the securities are settled to the investor's custody account.
New T+1 cycle
Thursday, 6 June 2024: The investor purchases US stocks.
Friday, 7 June 2024: The sum is charged from the investor's cash account and the securities are settled to the investor's custody account.