The Securities and Exchange Commission (SEC) wants broker-dealers and certain clearing agencies to know the expectations for the reduction of the settlement cycle for national and international trades from two business days after the trade date to one day (T+1).

In a risk alert published Wednesday, the SEC noted the reduction of the settlement cycle, which takes effect May 28, will place additional recordkeeping requirements on registered investment advisers.

Aaron Nicodemus is the Editor-in-Chief of Compliance Week. He previously worked as a reporter for Bloomberg Law and as business editor at the Telegram & Gazette in Worcester, Mass. Email: aaron.nicodemus@complianceweek.com LinkedIn:...