FINRA Updates Regulatory Extension System for T+2 Settlement Cycle

FINRA outlined equity trade reporting changes necessitated by the shortening of the settlement cycle from three business days to two business days ("T+2").

The SEC adopted an amendment to Exchange Act Rule 15c6-1 that shortens the standard settlement cycle for securities transactions to two business days after the trade date (T+2). The final rule became effective on March 30, 2017, and the compliance deadline is September 5, 2017.

The SEC approved a rule amendment that alters the settlement cycle from three business days after the trade date (T+3) to two business days (T+2). The amendment is expected to improve capital efficiency and reduce risk.

The SEC proposed an amendment that would shorten the standard settlement cycle for most broker-dealer securities transactions from three to two business days after the trade date.