New Settlement Dates

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1

So now that the settlement time is being changed to T+1 (instead of T+2) for regular way settlement, will “ex-dates” be changed/effected as well?

Ex: Under Current rules, Company XYZ is issuing a cash dividend with a record date of Feburary 16. The ex-date for this dividend would be Feburary 15(the first day the day trades without dividend. Using T+2, Feb 14 is the last day to hit the cutoff for the record date). Using the record date of Feb16, is the new ex-date just the same date as the record date? (exdate=Record Date)

Thanks in advance!

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Yes, on May 28th all T+2 settlement times will be changed to T+1, which means all related timelines will be one business day sooner.

On May 28th, 2024, settlement for regular-way trades will be shortened from T+2 to T+1. If you already studied the T+2 timeline, don’t worry! The logic is the same; the correct answer will just be one business day sooner. We will update our materials to reflect the updated T+1 timeline on May 27th.

FINRA exam updates go live May 28th:

  • For exams May 27th or before: T+2
  • For exams May 28th or after: T+1
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Thanks for the swift reply. I assumed this was the case but wanted to be certain!

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