Page 3 - Settlement Cycle News Today

<p><span>In a </span><a data-feathr-click-track="true" href="https://www.sifma.org/resources/submissions/shortening-the-securities-transaction-settlement-cycle/">comment letter</a><span> on the SEC’s proposal to shorten the securities transaction settlement cycle from the current trade date plus 2 days (T+2) to trade date plus one day (T+1), SIFMA highlights the benefits of the change, including overall risk redu...

Shorter settlement will require a change in behavior by all parties involved in trade execution and allocation.

The Securities and Exchange Commission on February 9, 2022 proposed to: shorten the standard settlement cycle for most broker-dealer securities transactions from two business days...

In the 1920s, Wall Street cleared and settled trades by the end of the day after the trade instruction (“T+1”). Over the years, that cycle bloated to T+4, to T+3 in 1993, and then T+2...

The SEC proposed extensive new regulation of private fund advisers under the Adviser's Act. Also, in testimony before the U.S. Senate Committee on Agriculture, Nutrition and Forestry, CFTC Chair Rostin Behnam reviewed the agency's regulatory oversight of digital assets.

T end of day settlement wont be easily achieved, says SIFMAs CEO.

US markets will benefit from still strong growth, low-interest rates, and its world-leading tech sector,” analyst Josh Gilberts says.

SIFMA, DTCC and the Investment Company Institute ICI outlined their plans to shorten the settlement cycle for U.S.-issued securities: Accelerating the U.S. Securities Settlement Cycle to T+1; the end of Q2 in 2024 as the target date for completion.

<p><span>The Securities Industry and Financial Markets Association (SIFMA), the Investment Company Institute (ICI), and The Depository Trust & Clearing Corporation (DTCC) today published a report targeting the first half of 2024 to shorten the U.S. securities settlement cycle from trade date plus 2 days (T+2) to trade date plus one day (T+1).</span></p>

Modest tick size reform and enhanced best execution are among five key recommendation.