The settlement cycle for both OTCQB and DTC trades in US equities is T+1. This means that the settlement of a trade (the transfer of ownership and funds) occurs one business day after the trade date. The transition to T+1 for US equities settled through the Depository Trust Company (DTC) was implemented on May 28, 2024.Prior to this change, the settlement cycle was T+2, meaning trades settled two business days after the trade date. The move to T+1 was mandated by the Securities and Exchange Commission (SEC) to shorten the settlement cycle for most US securities traded on the DTC. This change impacts a wide range of securities, including equities, corporate bonds, and other instruments.The T+1 settlement cycle is now standard for US and Canadian securities. This means that when you buy or sell a security on the OTCQB or through DTC, the transaction will be settled the next business day.
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