T+n settlement
Settlement a set number of business days after the trade date: T+1 means one business day later, T+2 two business days later.
T+n describes the settlement cycle of a trade: settlement takes place n business days after the trade date, T. Securities markets have been shortening their cycles, and some have moved from T+2 to T+1. Because n counts business days, the weekends and holidays of each relevant market, including Hijri-dated holidays, determine the actual settlement date for sukuk and shares.
This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.
Related terms
Business dayA day on which banks, markets or payment systems in a given place are open; the unit for due dates and settlement.Value dateThe date on which a payment or transfer is due to take effect and funds become available to the receiver.Weekend conventionWhich days count as the weekend in a market; it varies across Islamic-finance markets and drives settlement and due dates.Settlement finalityThe point at which a transfer becomes irrevocable and unconditional, so it cannot be unwound even if a participant fails.