T+1 and T+2 settlement vs Value date: what is the difference?
T+n counts the business days from the trade date to settlement. The value date is the date the funds actually become available. For an FX spot trade at T+2, the value date is two business days after the trade.
| T+1 and T+2 settlement | Value date | |
|---|---|---|
| In one line | T+n is shorthand for the number of business days between the trade date (T) and the settlement date, when money and assets change hands. FX spot trades settle within two business days, while US securities moved to T+1 in May 2024 and EU and UK securities follow on 11 October 2027. | Value date is the date on which a payment or obligation is due and the funds become available to the receiving party. It can differ from the date an instruction was sent or booked. |
| Read more | T+1 and T+2 settlement | Value date |
How they work together
Bank holidays in either currency push the value date out, which is why FX settlement calendars matter for funding.
Where Polynopsis fits
Polynopsis keeps a conversion or transfer in flight until it settles, so money with a later settlement date is not counted as available today.
Polynopsis tracks a transfer from send to settle, so money sent today with a later value date stays in flight in the position until it is available.
Frequently asked questions
What is the difference between t+1 and t+2 settlement and value date?
T+n counts the business days from the trade date to settlement. The value date is the date the funds actually become available. For an FX spot trade at T+2, the value date is two business days after the trade.
What is T+1 and T+2 settlement?
T+n is shorthand for the number of business days between the trade date (T) and the settlement date, when money and assets change hands. FX spot trades settle within two business days, while US securities moved to T+1 in May 2024 and EU and UK securities follow on 11 October 2027.
What is Value date?
Value date is the date on which a payment or obligation is due and the funds become available to the receiving party. It can differ from the date an instruction was sent or booked.
Sources
- Triennial Survey reporting guidelines for turnover in April 2025 · Bank for International Settlements
- Basel Framework, RMA20: Foreign exchange risks · Basel Committee on Banking Supervision
- SEC Finalizes Rules to Reduce Risks in Clearance and Settlement (15 February 2023) · U.S. Securities and Exchange Commission
- Regulation (EU) 2025/2075 amending Regulation (EU) No 909/2014 as regards a shorter settlement cycle in the Union · EUR-Lex, Publications Office of the European Union
- Policy note: Mandating T+1 settlement in the UK · HM Treasury
- CPMI glossary · Committee on Payments and Market Infrastructures, Bank for International Settlements
- Value date · ACT Wiki, Association of Corporate Treasurers
- International Money Express, Inc. Form 10-K for fiscal year 2024 · U.S. Securities and Exchange Commission (EDGAR)
Know where all your money is.
Polynopsis gives cross-border payment teams one live position across every bank, payout partner, exchange and wallet, including money in flight, and warns before a corridor runs dry.
About Polynopsis
Polynopsis is liquidity management software for cross-border payment companies. The name joins poly, many, and synopsis, a seeing together: one live view of money spread across many banks, payout partners, exchanges and stablecoin wallets, including money in flight, with a warning before any corridor runs dry.
Why it is called Polynopsis · About Polynopsis · Glossary · Corridor runway calculator