T+3


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T+3

(Transaction plus 3 days) In financial processing, the ability to complete a stock transaction within three days of the day it was made, which includes settlement, payment and transfer of ownership.
References in periodicals archive ?
securities markets to help meet the T+3 and the same-day funds payment goals.
It is the movement to T+3 settlement, however, that thus far has consumed much more of the industry's time and attention.
It became clear by November 1991 that there would not be a consensus on T+3 settlement among securities firms in the United States.
In February 1993, the SEC, relying heavily on the findings of the task force report (known as the Bachmann Report), proposed Securities Exchange Act Rule 15c6-1 to establish T+3 settlement as the standard settlement cycle in the United States.
The Municipal Securities Rulemaking Board noted that the municipal securities market differed considerably from the corporate securities market and would present some unique challenges in moving to T+3 settlement.
Instead, the commission asked the MSRB to take responsibility for converting the municipal securities market to T+3 settlement and urged that this be done within the same time frame as for other securities transactions governed by Rule 15c6-1.
The MSRB agreed to undertake this responsibility and in March 1994 provided its plan to the SEC of what actions it would take to help implement T+3 settlement.
In moving to T+3 settlement, the municipal securities industry faces several challenges arising from the special nature of the market.
In preparation for T+3 settlement, the MSRB revised its rules to mandate essentially universal use of the systems for inter-dealer and institutional customer transactions in municipal securities.
One nagging problem that is specific to the municipal securities market is that the automated systems for clearance and settlement are not always used with the requisite efficiency that will be needed in a T+3 settlement environment.
These efforts will continue and intensify as the date for T+3 settlement draws closer.
For retail transactions, the two major T+3 issues facing the municipal securities market are the same as those in the corporate securities markets.