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Friday, May 17, 2024

Equity Trader Alert #2024 - 29
Nasdaq Reminder for T+1 Clearing and Settlement Change

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  • System Impact

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On May 28, 2024, The Nasdaq Stock Market (Nasdaq), Nasdaq BX, and Nasdaq PSX will adopt a new settlement cycle, shortening the standard settlement cycle from two business days after the trade date (T+2) to one business day after the trade date (T+1). This change comes in accordance with the recent SEC rule change, for additional information about the rule change please visit the SEC Website.

This shorter settlement cycle will also affect when transactions in stocks are ex-dividend. Previously, the ex-dividend date was generally one business day before the record date. Going forward, however, the ex-dividend date will generally be the same date as the record date. The first record date to which the new ex-dividend date ruling rationale will be applied will be Wednesday, May 29, 2024. The chart below describes the anticipated “regular” ex-dividend date rulings over the conversion time (please note that Monday, May 27, 2024, is a US Holiday and not a business day):

Record Date
Ex-date
May 24, 2024 May 23, 2024
May 28, 2024 May 24, 2024
May 29, 2024 May 29, 2024

Due to the settlement change, May 29, 2024 will be the settlement date for trades that occur on both May 24, 2024 and May 28, 2024. Nasdaq and other self-regulatory organizations have agreed with the DTCC that no securities will become ex-dividend on May 28, 2024.


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