Close

Are you in compliance?

Don't miss out! Sign up today for our weekly newsletters and stay abreast of important GRC-related information and news.

×

Status message

Start your free, no obligation 5-day trial to continue exploring with full access.

Ready for T+2? Proposal seeks shorter settlement cycle

Joe Mont | September 30, 2016

A rule amendment to shorten the standard settlement cycle for most broker-dealer securities transactions from three business days after the trade date (T+3) to two business days after the trade date (T+2) was proposed by the Securities and Exchange Commission this week.

 The proposed amendment, advanced for public comment on Set. 28, is designed to reduce the risks that arise from the value and number of unsettled securities transactions prior to the completion of settlement, including credit, market, and liquidity risk directly faced by U.S. market participants.

 “Today’s proposal to shorten the standard settlement cycle is an important step in the SEC’s ongoing efforts to enhance the resilience and efficiency of the U.S. clearance and settlement system,” SEC Chair Mary Jo White said in a statement. “The benefits of a shortened...

Buy this article for $49, or subscribe to Compliance Week for a month at $149 and get unlimited article access for 30 days.