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Morning Brew Daily

NOTE

Settlement Periods in Trading

Moving from T plus two to T plus one in settlement periods can help reduce the amount of collateral required and make the market more efficient. While T plus zero settlement cycle allows for real-time transactions, it introduces more risk due to the potential for fraud. T plus one settlement period strikes a balance, offering efficiency without the added risk of T plus zero, making it the preferred option for many in the trading world.

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