Question
What is the new settlement period for transactions in
the primary market as of June 2024?Solution
The settlement period for primary market transactions is T+1, which means the settlement date is one business day after the transaction date. This new rule became effective on May 28, 2024. The settlement date is when the buyer pays the seller and the seller delivers the assets to the buyer. The T in T+1 stands for the transaction date, and the +1 means the transaction will clear one business day later.
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