// GLOBAL SETTLEMENT CYCLES

Global Settlement Cycles

Settlement latency is compressing globally. The US moved to T+1 in May 2024, releasing 41 percent of CCP margin requirements. Asynchronous adoption creates cross-border funding gaps: European institutions buying US equities settle securities T+1 but FX T+2, creating a 24-hour funding gap requiring expensive T+0 FX swaps.

REGION	CYCLE	TRANSITION DATE	NOTES
USA / Canada / Mexico	T+1	Implemented May 2024	Covers $59T+ market cap. DTCC margin volatility reduced 41%.
United Kingdom / EU / Switzerland	T+2	Target: Oct 11, 2027	CSDR Article 5 amendment. Cross-border FX funding gap: FX settles T+2 but securities T+1.
Mainland China (A-Shares)	T+0 / T+1	N/A	Securities settle T+0, cash settles T+1. Prevents intraday trading on Stock Connect.
Japan	T+2	No immediate plans	T+1 for JGBs. Legacy system reliance for equities.
Australia	T+2	Target: 2030+	Complete CHESS infrastructure overhaul required.
India	T+1	Implemented Jan 2023	First major market to implement T+1. Phased rollout over 9 months.

// EXPLORE MORE

// CLOSURES

Global Holiday Calendar

When settlement and margin calcs collide with closed venues

// REFERENCE

Exchange Reference

Local hours, market cap, structural notes per venue

// STRUCTURE

US Microstructure

Pre-market, opening auction, RTH, closing auction mechanics