T+1 Settlement Cycle Goes Into Effect
The SEC final rule to shorten the standard settlement cycle under SEA Rule 15c6-1 ("Settlement cycle") for most broker-dealer transactions from two business days after the trade date ("T+2") to one business day after the trade date ("T+1"), has come into effect. (See related coverage.) The MSRB has likewise shortened the settlement cycle for municipal securities by making amendments to MSRB Rule G-12 ("Uniform Practice") and MSRB Rule G-15 ("Confirmation, Clearance, Settlement and Other Uniform Practice Requirements with Respect to Transactions with Customers") effective today, May 28, 2024. (See related coverage.)
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The SEC adopted a final rule to shorten the standard settlement cycle for most broker-dealer transactions from two business days after the trade date ("T+2") to one business day after the trade date ("T+1").
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The MSRB adopted amendments to its rules on uniform practice and confirmation, clearance and settlement to "define regular-way settlement for municipal securities transactions as occurring one business day after the trade date" and to align with recent SEC rule amendments to shorten the settlement cycle.
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The SEC approved an amendment to MSRB Rule G-12 ("Uniform Practice") to require the completion of allocations, confirmations, and affirmations by the end of trade date for municipal securities transactions.