Q. Which one of the following is the key feature of the T+1 settlement cycle?
Red Book
Red Book

[A] Transactions are settled on the same day of the trade

[B] Transactions are settled one business day after the trade

[C] Transactions are settled two business days after the trade

[D] Transactions are settled three business days after the trade

Answer: B
Notes:

Explanation – The key feature of the T+1 settlement cycle is that the transactions are settled one business day after the trade. This means that when a trade is executed, the actual transfer of securities and funds occurs on the next business day following the transaction date.

Source: AIR


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