When a trade fills when,
can I expect the settlement?

This is an overview of once your trade has filled, when you will receive settlement or payment for the trade. The time when you can access the funds from a share sale can vary, read the guide below to learn more.

We are using the same scenario, but in this instance, you have SOLD 100 Commonwealth Bank (CBA.ASX) shares.

TIMEFRAMES SUMMARY

Event	Time	Additional Details
Order placement	Instant	Dependent on your internet connection and platform responsiveness
Order routing	Milliseconds	Typically, 5-50 milliseconds from broker to exchange
Trade execution	Milliseconds – seconds	Market orders: near-instant; Limit orders: depends on matching
Trade confirmation	Seconds – minutes	You’ll see it on-screen within seconds, and formal confirmation within minutes
Broker confirmation notes	End of day (by 5pm)	Email sent containing complete trade details and contract note
Clearing (T+0 to T+2)	2 business days	The background process is happening continuously
Settlement (T+2)	Morning of T+2	Typically, between 8am-12pm AEST, coordinated batches
Money debited (buy)	T+2 (morning)	Deducted from your broker account or bank account
Money credited (sell)	T+2 or T+3	Depends on broker policy; it may take an extra day to reach the bank
Bank transfer (if needed)	T+2 or T+3	Additional time if transferring between banks
Share ownership legal	T+2 settlement	You become the legal owner upon settlement completion
Can sell purchased shares	T+2 onwards	Cannot sell until settlement completes (no short selling without margin)
Can receive dividends	Depends on ex-div date	Must own before the ex-dividend date, even if before T+2
CGT 12-month period starts	Trade date (T+0)	Important for 50% CGT discount calculation
Trade appears on tax report	Financial year of T+0	Even if the settlement occurs in the next financial year

If those are the normal time frames, what are the exceptions?

SPECIAL SCENARIOS

T+2 Falls on Weekend/Holiday

Settlement automatically extends to the next business day.

Example 1:

Trade Friday 21 Nov 2025 (T+0)
T+2 = Sunday 23 Nov (non-business day)
Actual Settlement = Monday 24 Nov 2025 (next business day)
Your money is debited on Monday morning

Dividends

Key Rule: Entitlement is based on the ex-dividend date, not the settlement date.

Example:

Ex-Dividend Date: 19 Nov 2025
You buy: 18 Nov (T+0)
- Settlement: 20 Nov (T+2)
- You ARE entitled to the dividend (bought “cum dividend”)
You sell: 20 Nov (T+0)
- Settlement: 22 Nov (T+2)
- You ARE still entitled to the dividend (sold “ex dividend”)
Dividend Payment Date: 10 Dec 2025
- You receive the dividend even though you no longer own the shares
- Payment goes to whoever owned the shares on the record date (typically ex-div date + 1)

Share Splits

Example:

Company announces 2-for-1 split
Ex-Split Date: 25 Nov 2025
You buy 100 shares: 24 Nov (T+0)
Settlement: 26 Nov (T+2)
You receive 200 shares (the split applies to your holding)

Rights Issues

Example:

Rights Offer announced: 1 Nov 2025
Ex-Rights Date: 15 Nov 2025
You buy: 14 Nov (cum-rights – you get the rights)
You buy: 16 Nov (ex-rights – you don’t get the rights)
Rights Allocation: Based on holdings as of Record Date (16 Nov)

Important: If you sell after the ex-rights date but before settlement, you still receive the rights because you owned on the record date.

Takeovers

If you buy during a takeover period, you receive the takeover offer
If the scheme completion date falls before your settlement date, special rules apply
Your shares may automatically be acquired by the bidder on the scheme date
Proceed payment typically replaces share delivery in settlement

Common Settlement Questions

Q: Can I sell shares before T+2 settlement?
A: Yes, you sell shares you’ve purchased before they have settled (T+2). We cash vet orders, and monies associated with the buy are deducted from the available cash balance.

Q: What if I don’t have enough money on T+2?
A: Your broker will contact you. Options include: selling other holdings, borrowing from the broker (margin loan), or the broker may sell the shares on your behalf. Penalties and interest may apply.

Q: What happens if the seller doesn’t deliver shares?
A: ASX Clear guarantees the trade. They will find shares from other sources or buy in the market. The failing seller faces penalties and potential further consequences.

Q: Can I cancel a trade after execution?
A: Generally no. Once matched and executed, trades are binding. Exceptions exist only for clear errors acknowledged by the exchange (very rare).

Q: Do I pay tax on unsettled trades?
A: Tax obligations are based on trade date (T+0), not settlement date. If you trade on 30 June, it counts in that financial year even though settlement is in July.

Q: What’s the difference between my broker account and my HIN?
A: Your broker account is your trading and cash account with the broker. Your HIN is your ownership record in the CHESS system. Your HIN shows what shares you legally own.

Stockmarket Knowledge

This is one of the Stockmarket Knowledge Education articles, which delve into the processes and roles involved in online share trading on the ASX. It will show you who does what, why, when, and how monies are taken or paid during settlement.

Click on the subjects below to open the educational content.

Who does what, when trading?

The Bottom Line

Trade settlement on the ASX operates on a T+2 basis, meaning your trades legally complete two business days after execution. While you’ll see your order fill within milliseconds and receive confirmation almost immediately, the actual transfer of legal ownership and exchange of funds occurs 48 hours later through a coordinated process involving ASX Clear and the CHESS system.