Comment Deadline Set for SEC Proposal to Shorten Securities Trade Settlement Cycle
The SEC published in the Federal Register a proposal to shorten the standard settlement cycle for broker-dealer transactions from two business days after the trade date (T+2) to one day after the trade date (T+1). Comments on the proposal are due by April 11, 2022.
As previously covered, the proposal would require broker-dealers and investment advisers to accelerate the process of confirming and affirming trade information necessary to prepare a transaction for settlement so that it is completed by the end of the trade date. Certain clearing agencies also would be required to facilitate straight-through processing.
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