T+2 settlement
Definition · Level 14 · Markets & pitch
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Cash and shares change hands two business days after the trade date: the standard for shares on European exchanges. The US moved to T+1 in 2024; Europe and the UK plan to follow in October 2027.
Example
Buy on Wednesday, settle on Friday; the ex-dividend date is one business day before the record date.
Rules and market figures change: check the current ones before relying on this.
Where Tradecraft teaches it
Level 14 · Markets & pitch, in the lesson “European markets on the day: bonds, rates and settlement”: The Bund and the spreads to it, the ECB, €STR and Euribor in one line each, T+2 settlement, and the US rules that never come up in Europe.
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