Federal Register: SEC Approves FINRA Proposal to Conform Rules to Shortened Settlement Cycle

The SEC approved a FINRA proposal to shorten the standard settlement cycle for most broker-dealer transactions from three business days after the trade date ("T+3") to two business days ("T+2"). The final rule was published in the Federal Register.

FINRA stated that it will announce the effective date of the proposed rule change in an Equity Regulatory Alert. The effective date will correspond with (i) the industry-led transition to a T+2 standard settlement cycle, and (ii) the effective date of the proposed SEC amendment to Securities Exchange Act Rule 15c6-1(a).