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SEC Proposes T+2 for Settling Securities Transactions

Posted by Howard Berkenblit on September 30, 2016 at 9:30 AM

The SEC has proposed 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). The proposed amendment 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. 

For more information about the proposal see:  https://www.sec.gov/news/pressrelease/2016-200.html

Topics: SEC, securities, broker-dealer transactions

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The SEC Pulse provides updates and commentary from our Capital Markets Group on issues affecting publicly traded and privately owned businesses, investment banks and foreign companies who trade or raise capital in the United States, and boards of directors and company officers in securities transactions and corporate governance matters.

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