On May 28th, 2024, settlement on any U.S. securities will change from two business days to one. This document provides information on how this change will impact your usage of Orion. For information on how this will impact your individual client accounts, please connect with your custodial data partners.
- Will my data be reconciled the same way?
Yes – The Orion reconciliation process is based on trade date, not on settlement date. Orion will continue to receive files the day after trades are placed and executed (T+1), even if positions have not yet been settled. - Will I be able to assess which tax lots are settled, and which are not?
There will be no change to the settlement data currently received. Orion does not track settlement; settlement information is provided from the custodian(s) and will identify whether or not a tax lot has been settled. - Will this impact my trading?
Currently, (with one exception discussed in #4) Orion’s trading applications do not utilize or evaluate settlement. There is NO IMPACT to the trading application with the change to T+1 settlement. - What about the unsettled tax lot warning in Orion Trading (Eclipse)?
If you did not know, there is a T+2 warning notification in the Orion Trading application for any attempted sale of an unsettled tax lot. This warning will be removed, since it is no longer required due to the T+1 settlement change (warning evaluation only occurred the day after trade date). Note that a separate notification for selling a tax lot purchased on the same day will continue to be tracked by the “security already traded” warning message.