T+1 US stock settlement timings
The Securities and Exchange Commission (SEC) has introduced new rules on settlement timings for US stocks. These new rules come into force on 28 May.
What does this mean for Moneybox customers?
Due to how we ‘batch’ buys and sells, customers who request either a buy or sell from 12pm on Friday 24 May 2024 will see those buys or sells settle on T+1 (where T is the day the order is submitted, and +1 is the day it settles). Stocks are bought and sold when the US market opens (usually 2.30pm UK time).
We’ve made some small changes to the app to reflect these new settlement timings. Update your app today so they show.
The settlement time will be different depending on whether your buy or sell was submitted before or after 12pm – and depending on US public holidays.
- If a buy or sell is submitted before 12pm, it will settle on the next business day. So if you submit a buy or sell before 12pm on Monday, it will be submitted on Monday, and settle on Tuesday.
- If you request a buy or sell after 12pm, it will be submitted on the next working day, and it will settle the day after. So if you submit a buy or sell after 12pm on Monday, it will be submitted on Tuesday, and settle on Wednesday.
- US public holidays also affect this settlement timeline – deferring buys or sells by an additional day.
Which assets does this change impact?
US stocks only. Any buys or sells into our range of funds and ETFs are unaffected.