After many years of discussion and anticipation, T+1 is becoming a reality. The US Securities and Exchange Commission has finalized rules to shorten the standard settlement time for most securities trades from two business days to one. The move is intended to “reduce latency, lower risk, and promote efficiency as well as greater liquidity in the markets,” according to the SEC Chair Gary Gensler. The rule covers trades in equities, corporate bonds, unit investment trusts, mutual funds, ETFs, ADRs, and options.
If you have been deferring investments in up-to-date trading solutions or automated connectivity with counterparties, T+1 provides a powerful incentive to accelerate those plans. A successful transition calls for thoughtful cooperation among all market participants, as well as the technology providers who support them.
Learn more about how your firm can stay ahead of the curve, and be prepared to effectively navigate the transition to T+1 settlement cycle.