Mark your calendar: T+1 settlement is effective on May 28

The move to a one-day settlement cycle or ‘T+1’ is almost here, coming into effect May 28, 2024 in the US and May 27, 2024 in Canada.

Changing the settlement cycle from T+2 to T+1 benefits investors and reduces transactional risks to market participants. T+1 means that trade-related settlements will occur within one business day of a trade date, so investors will see the funds in their account or receive their shares faster. It also reduces the time for investors to be notified of any non-payment or not receiving shares purchased by a full day.

In anticipation of this change, Computershare has had a dedicated T+1 project management team in place for some time. Our team has decades of experience managing market changes like this and are looking forward to a smooth transition.

As a reminder, we encourage your organization to review two items related to T+1:

Your company’s shareowner communications that reference settlement date will need to be updated. This can include form letters, websites, internal policies/procedures and registered plan prospectuses.
Processes at your company built around settlement date, such as option issuances, treasury buybacks, and other share movements. Specifically, letters of instruction should reflect the change to T+1 and you may need to review timelines and hand-offs with your third-party providers or brokers.

Also, if your company is planning a voluntary corporate action that expires after May 28, 2024, and will have a guaranteed delivery period, please be aware the guaranteed delivery period will need to be shortened by one trading day.

Additional T+1 information is available at www.ust1.org.

We expect the change to T+1 will have little impact on the day-to-day business between your company and Computershare. If you have questions or would like more information, please contact your Relationship Manager who can connect you with our T+1 subject matter experts.