ARTICLE
13 October 2016

Rule Proposed To Expedite Settling Securities Transactions

KL
Herbert Smith Freehills Kramer LLP

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The SEC proposed to shorten the standard settlement cycle for most broker-dealer securities transactions from three business days after the trade date (T+3) to two business days after the trade date (T+2).
United States Corporate/Commercial Law

The SEC proposed a rule amendment to shorten the standard settlement cycle for most broker-dealer securities transactions from three business days after the trade date (T+3) to two business days after the trade date (T+2). The proposed amendment is designed to reduce the risks that arise from the value and number of unsettled securities transactions prior to the completion of settlement, including credit, market and liquidity risk directly faced by U.S. market participants.
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