Description

Last week, on September 5, 2017, the securities industry successfully implemented a shortened settlement cycle for most securities transactions, pursuant to amendments to Rule 15c6-1 that the Commission adopted earlier this year. The move to a two business day standard settlement cycle or T+2 was the product of extensive preparation and coordination among regulators and industry. This change represents a significant milestone for the securities markets the standard settlement cycle was last shortened in 1995 when it moved from five business days to three business days. The first transactions covered by the amended rule settled on September 7, 2017.

The benefits of a shortened settlement cycle extend throughout the financial sector. The shortened settlement cycle, which was largely enabled by advances in technology, should reduce certain risks in the clearance and settlement process, including credit, market, and liquidity risks for central counterparties, their members, and other market participants. It also should enhance efficiency by promoting innovation and changes in market infrastructures and operations.

Last weeks transition to a T+2 standard settlement cycle represents a significant accomplishment, said SEC Chairman Jay Clayton. Going forward, investors and other market participants will be able to receive the proceeds of their securities transactions one day sooner, thereby enhancing the overall efficiency of the U.S. securities markets. I would like to thank my colleagues, including Commissioners Piwowar and Stein and the staff of the Commission, for their leadership in achieving this important result.

Last week, the U.S. securities markets terminated the outdated T+3 settlement cycle and successfully implemented T+2, said Commissioner Michael Piwowar. I applaud the Commission staff and market participants for achieving a smooth transition to a new environment that provides greater efficiency and less risk to the American people.

The shortened settlement cycle benefits investors and contributes to the resiliency of our securities markets, said Commissioner Kara Stein. I look forward to future collaborative efforts as we work together to further enhance our market structure.

If you have additional questions about this transition to the T+2 standard settlement cycle, the Commission will continue to maintain the previously-established e-mail address [email protected] for the submission of inquiries to SEC staff.

Comments
Order by: 
Per page:
 
  • There are no comments yet
   Comment Record a video comment
 
 
 
     
Related Feed Entries
Yesterday, the Securities and Exchange Commission voted unanimously to approve a statement and interpretive guidance to assist public companies in preparing disclosures about cybersecurity risks and incidents. I believe that providing the Commissions views on these matters will promote clearer and more robust disclosure by companies about cybersecurity risks and incidents, resulting in more complete information being available to investors, said SEC Chairman Jay Clayton. In particular, I urge p…
22 hours ago · From Securities Exchange Commission
Security researcher at FireEye break down the arsenal of APT37, a North Korean hacker team coming into focus as a rising threat.Source: Wired - Emerging technologies News
Despite its Olympics diplomacy towards the South, the Kim regime is still engaged in brazen cybercrime targeting its neighbor.Source: Wired - Emerging technologies News
In a Senate hearing Tuesday, the heads of the three-letter intelligence agencies detailed their greatest concerns.Source: Wired - Emerging technologies News
The Securities and Exchange Commission today announced the opening of registration for its compliance outreach programs national seminar for investment companies and investment advisers. The event is intended to help Chief Compliance Officers (CCOs) and other senior personnel at investment companies and investment advisory firms to enhance their compliance programs for the protection of investors. The SECs Office of Compliance Inspections and Examinations (OCIE), Division of Investment Manageme…
9 days ago · From Securities Exchange Commission
Rate
0 votes
Info
Michael Blair
Time is your GREATEST asset
11.09.2017 (11.09.2017)
23 Views
0 Subscribers
Recommend