Trade settlement period to be reduced in September
Trade settlement period will shorten industry-wide this September.
We’re writing with a reminder that beginning September 5, 2017, the trade settlement period for U.S. and Canadian securities will be shortened to two days after the trade date (T+2). Currently, the settlement period is three days after the trade date (T+3).
New settlement period details.
This change is designed to reduce market risk and bring U.S. standards in line with those of other nations. The change may also benefit investors like you by reducing credit and liquidity risks present between the trade date and the settlement date. Securities impacted by this change include equities, corporate bonds, municipal bonds, and unit investment trusts, as well as financial instruments composed of these security types (ETFs, ADRs, and rights and warrants).
Next steps.
No action is required on your part. If you have questions or need more details about this change, please refer to the insert included with your July statement. You can also visit schwab.com/T2 or call 800-435-4000 to speak with a Schwab representative. For clients of independent investment advisors, please contact your advisor directly, or call Schwab Alliance at 800-515-2157. For information on markets outside of the U.S., please contact Global Investing Services at 800-992-4685.
Thank you for investing with Schwab. We appreciate the opportunity to serve you.
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