ARTICLE
3 April 2017

SEC Guides Investors On "T+2"

CW
Cadwalader, Wickersham & Taft LLP

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Cadwalader, established in 1792, serves a diverse client base, including many of the world's leading financial institutions, funds and corporations. With offices in the United States and Europe, Cadwalader offers legal representation in antitrust, banking, corporate finance, corporate governance, executive compensation, financial restructuring, intellectual property, litigation, mergers and acquisitions, private equity, private wealth, real estate, regulation, securitization, structured finance, tax and white collar defense.
The SEC Office of Investor Education and Advocacy published an investor bulletin that explained how the new "T+2" securities settlement cycle will affect certain transactions with brokerage firms.
United States Corporate/Commercial Law

The SEC Office of Investor Education and Advocacy published an investor bulletin that explained how the new "T+2" securities settlement cycle will affect certain transactions with brokerage firms.

As reported previously, the standard settlement cycle will be reduced from three business days after the trade date (T+3) to two business days (T+2). The SEC bulletin notes that this will alter the timing for a broker-dealer delivering a security on behalf of an investor, and for payments by an investor who buys a security. Investors are encouraged to consult with their broker-dealers about how the new settlement cycle will affect specific accounts.

Broker-dealers will be required to comply with the new settlement cycle with regard to trades executed on or after 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.

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