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SEC proposes to shorten standard settlement cycle for broker-dealer securities transactions

  • SEC document Image

Sep 28, 2016

The SEC has issued a proposed rule, “Amendment to Securities Transaction Settlement Cycle.”

The proposed rule would “shorten the standard settlement cycle for most broker-dealer transactions from three business days after the trade date (‘T+3’) to two business days after the trade date (‘T+2’).” The purpose of the proposed amendments is “to reduce a number of risks, including credit risk, market risk, and liquidity risk and, as a result, reduce systemic risk for U.S. market participants.”

Comments on the proposal are due 60 days after the date of its publication in the Federal Register. For more information, see the press release and proposed rule on the SEC’s Web site.

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