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A notation indicating the settlement date for securities transactions, such as a stock sale, with effect from trade dates on or after September 5, 2017. This contrasts with the prior longer period denoted by T+3.

Details of the change to the T+2 settlement cycle are available at a website operated by US financial-services industry. The main reason for the move to a shorter period was to reduce risk in the securities-settlement process. A blog commentary from the NASPP provides background on the change and what it means for companies, stock plan brokers, and employees. For example, with any stock plan transactions that involve open-market sales, such as same-day-sale and sell-to-cover transactions, the processing time has been shortened. To settle by T+2, the broker must, sooner than previously, receive the shares and know the funds to send the company to cover the exercise cost and the tax withholding.

In February 2022, the SEC issued proposed rules seeking to shorten the settlement cycle to T+1. The proposals and the related issues for stock compensation are discussed in a commentary at the NASPP's blog (Are You Ready For T+1?).

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