Overview
For many years, the standard settlement cycle for equities, corporate and municipal bonds, and unit investment trust (UIT) was the third business day after a trade was executed (T+3). Starting on , this was amended to the second business day after a trade was executed (T+2). On , this will be amended again to the first business day after a trade is executed (T+1).
Support
All versions of Eagle Accounting have the flexibility to support the T+1 settlement cycle, in addition to T+3, T+2, and even T+0. The settlement cycle is determined at trade time based on the Trade Date (35) and Settlement Date (37) defined for each transaction, and Eagle Accounting posts activity accordingly. Multiple settlement cycles can be used alongside one another (T+1 for Security A and T+2 for Security B).
Considerations
- For automated trades, confirm your incoming files reflect the appropriate T+1 Settlement Date. If you have logic in place to calculate the Settlement Date instead of receiving it, ensure this logic is updated to calculate T+1.
- Cash settlements are processed in accordance with Settlement Date in Eagle Accounting. Make note of this when viewing traded and settled cash activity reports.
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