Effective Now: New FINRA Rules on Shortened Settlement Cycle
FINRA rule amendments to conform rules to the SEC's new shortened standard settlement cycle of trade date plus one business day (T+1) are now effective.
The SEC published a Notice triggering the immediate effective date for the "non-controversial" rule changes and beginning the comment period. As previously covered, The FINRA amendments align its rules with Exchange Act Rule 15c6-1 ("Settlement cycle") and Exchange Act Rule 15c6-2 ("Same-day allocation, confirmation and affirmation").
Comments on the amendments are due by December 29, 2023. The compliance date is May 28, 2024, the same as the compliance date for Exchange Act Rules 15c6-1 and 15c6-2.
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FINRA proposed amendments to conform its rules to what will be the new shortened standard settlement cycle of the trade date plus one business day (T+1).
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FINRA updated its Regulatory Extension system to support broker-dealers' transition to the shortened standard settlement cycle from two business days (T+2) to one business day (T+1).
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FINRA's Board of Governors approved a rule change to conform FINRA Rules to the SEC's T+1 settlement requirement.
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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").
