Settlement date

(1)The date on which the exchange of cash, securities, and paperwork involved in a transaction is completed. Usually one day after the trade date (T+1) in conventional funds and fixed-income markets and three days after the trade date (T+3) in exchange-traded funds and equity markets. In the Eurobond market it is the value date. This intended settlement date is sometimes referred to as the contractual settlement date.
(2) The date when payment for a wire-order purchase or a wire-order redemption is received. Funds purchased through a dealer company are normally settled three business days after the trade date. Funds purchased directly by an investor settle on the day payment is due.
(3) The day on which the currencies involved in a currency option transaction are exchanged.