SIFMA urged the SEC to adopt the proposal to shorten the settlement cycle for most broker-dealer transactions from three business days after the trade date ("T+3") to two ("T+2"). SIFMA reiterated its past position that moving to a T+2 settlement cycle would (i) reduce credit, market and liquidity risks, (ii) promote financial stability, (iii) significantly mitigate systemic risks to the financial system, and (iv) benefit investors by harmonizing the U.S. securities market's settlement cycle with the settlement cycles of non-U.S. securities markets.
SIFMA urged the SEC to adopt the T+2 standard settlement cycle for U.S. securities transactions in the secondary markets as soon as possible. Specifically, SIFMA exhorted the SEC to adopt the T+2 proposal by March 2017 in order to ensure that industry participants have enough lead time to complete systems and operational changes that are required to achieve T+2 implementation by the SIFMA identified target date of September 5, 2017.
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