SEC Commissioners Applaud Proposals to Shorten Trade Settlement Cycle

Commissioner Michael S. Piwowar and Commissioner Kara M. Stein issued a joint statement regarding an industry white paper proposal to shorten the trade settlement cycle to two days ("T+2").

Commissioners Piwowar and Stein applauded the T+2 Industry Steering Committee's "leadership in seeking changes to mitigate risks and improve capital efficiency" by creating the white paper. The paper outlines the actions and timeline required to move from a three-day ("T+3") trade settlement cycle to a T+2 trade settlement cycle for securities transactions in the United States.

Commissioners Piwowar and Stein stated that they look forward to working with SEC staff members, as well as partnering with market participants, to "shorten the settlement cycle as soon as possible."

See: Commissioners' Statement.Related news: T+2 Industry Steering Committee Releases White Paper Regarding Proposed Timeline for T+2 Settlement Cycle (June 25, 2015).