FINRA Proposes Amendments to Conform Rules to Shortened Settlement Cycle

FINRA proposed amendments to conform its rules to what will be the SEC's new shortened standard settlement cycle of the trade date plus one business day (T+1). The SEC's final rules amended Exchange Act Rule 15c6-1 ("Settlement cycle") and Exchange Act Rule 15c6-2 ("Same-day allocation, confirmation and affirmation"). (See previous coverage.)

To align its rules with the SEC's T+1 Adopting Release, FINRA proposed conforming amendments on FINRA Rules 2341 ("Investment Company Securities"), 4515 ("Approval and Documentation of Changes in Account Name or Designation"), 6282 ("Transactions Reported by Members to the ADF"), 6380A ("Transaction Reporting"), 6380B ("Transaction Reporting"), 6622 ("Transaction Reporting"), 7140 ("Trade Report Processing"), 7240A ("Trade Report Processing"), 7340 ("Trade Report Processing"), 11140 ("Transactions in Securities 'Ex- Dividend,' 'Ex-Rights' or 'Ex- Warrants'"), 11150 ("Transactions 'Ex-Interest' in Bonds Which Are Dealt in 'Flat'"), 11210 ("Sent by Each Party"), 11320 ("Dates of Delivery"), 11620 ("Computation of Interest"), 11860 ("COD Orders"), 11893 ("Clearly Erroneous Transactions in OTC Equity Securities") and 11894 ("Review by the Uniform Practice Code ("UPC") Committee").

FINRA filed the proposed rule change for immediate effectiveness. The operative date for the proposed rule changes will be May 28, 2024, the same as the compliance date for Exchange Act Rules 15c6-1 and 15c6-2.