The U.S. stock market has recently shifted to a T+1 settlement cycle, reducing the time it takes for trades to settle from two days to one.

This change has prompted global banks, brokers, and investors to reassess their post-trade technologies and procedures to adapt to the faster trading pace. Investors outside the U.S. face unique challenges as many international currency trades and local stock markets still operate on a two-day settlement standard.

This shift represents a significant evolution in trading practices, reflecting the ongoing modernization of financial markets. In the past, stock trades involved physically exchanging certificates, which often took five days or more to settle. However, the surge in trading volume during the late 1960s led to the establishment of a central clearinghouse by the New York Stock Exchange, enabling the automation of transactions and setting the stage for today's rapid trading environment.