When you return from the long Labor Day holiday, your securities transactions in equities, corporate or municipal bonds, unit investment trusts, and any securities comprised of these security types will be subject to a “trade date plus 2 days” ( “T+2″) shortened settlement, from the current”T+3”. Thus, any trades executed on Tuesday will settle on September 7.
The move harmonizes U.S. markets with most major international markets. It is also expected to reduce risk of trade defaults and streamline capital requirements for equity clearing.
The current T+3 settlement process has been in place since 1995.