In the scenario where you sell EU shares or ETFs and try to buy any US assets you will notice that your cash proceeds from the sale are shown as ‘Awaiting Settlement’, this is until the next business day when it then becomes ‘Available cash’ and can then be used to place new buy orders for US assets. This delay is due to differences in processing times between EU and US stock transactions.
If you want to re-invest in US assets straight away we recommend that you always keep sufficient cash balance on your account to do so.
Why is my cash not available immediately after selling an asset?
In May 2024, the US securities market made an important change to its settlement cycle. The time it takes to settle stock trades in the US was reduced from T+2 (transaction day + 2 business days) to T+1 (transaction day + 1 business day). This means you officially become the owner of US stocks one business day after buying them, instead of two. The same goes for selling US stocks—your trade will settle in one day.
However, EU markets haven’t adopted this change yet and still operate on a T+2 settlement cycle. To adapt to the new US cycle, BUX had to make adjustments. As a result, in some cases, when you sell an EU asset, we need to hold your cash for 1 business day. This prevents you from using the money immediately to buy US stocks that settle on the faster T+1 schedule.
Here’s a quick guide on when your cash will be available after selling an asset:
- Sell an EU asset, then buy a US asset: Cash is available the next business day.
- Sell an EU asset, then buy an EU asset: Cash is available immediately.
- Sell a US asset, then buy an EU asset: Cash is available immediately.
- Sell a US asset, then buy a US asset: Cash is available immediately.
Where can I view a breakdown of my cash?
To see a detailed breakdown of your cash, go to your portfolio screen and select ‘Account value.’ Then, tap on ‘Cash’ to expand the view. You’ll see your cash divided into two categories: ‘Available’ and ‘Awaiting Settlement.’