SEC Shortens Settlement Cycle for Securities Transactions to T+2

SEC Shortens Settlement Cycle for Securities Transactions to T+2


By: Stuart H. Gelfond, Joshua Wechsler, Michael Chen

On March 22, 2017, the Securities and Exchange Commission adopted an amendment to Rule 15c6-1(a) of the Securities Exchange Act of 1934 to shorten the standard settlement cycle for most broker-dealer securities transactions from three business days (T+3) after the trade date to two business days (T+2) after the trade date.  This shortened settlement cycle is meant to enhance efficiency and reduce the credit, market, and liquidity risks faced by U.S. market participants.

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