The SEC adopted an amendment to Exchange Act Rule 15c6-1 that shortens the standard settlement cycle for securities transactions from three business days after the trade date (T+3) to two business days (T+2).
As previously discussed, the primary purpose of the rule change is to (i) improve capital efficiency, (ii) reduce risk, and (iii) provide for a coordinated and expeditious transition to a shortened standard settlement cycle for market participants.
The final rule became effective on March 30, 2017, and the compliance deadline is September 5, 2017.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
