Regulatory Alerts2022-02-09
Shortening the Securities Transaction Settlement Cycle
The Securities and Exchange Commission proposes to shorten the standard settlement cycle for most broker-dealer transactions from two business days (T+2) to one business day (T+1). To support this acceleration, the agency mandates same-day affirmation for institutional trades, updates recordkeeping rules for investment advisers, and requires clearing agencies to establish straight-through processing policies. Market participants must comply with these amendments by March 31, 2024, while the Commission simultaneously solicits feedback on potential pathways to achieve a same-day (T+0) settlement cycle.
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