U.S. Regulators Support T+2 Settlement Cycle Move

Senior regulators at the U.S. Securities Exchange Commission (SEC) have voiced their support for the move to migrate securities settlement from T+3 to T+2.
By Joe Parsons(2147488729)
Senior regulators at the U.S. Securities Exchange Commission (SEC) have voiced their support for the move to migrate securities settlement cycle from T+3 to T+2.

It comes two weeks after an industry-led committee made up of banks, investment managers and market infrastructures, published a white paper proposing to implement the move to T+2 by the end of third quarter in 2017.

“We applaud industry’s leadership in seeking changes to mitigate risks and improve capital efficiency,” SEC commissioner Michael Piwowar and Kara Stein says in a joint statement.

“Earlier this year, the Commission’s Investor Advisory Committee encouraged the Commission and market participants to move forward on reducing the settlement cycle, which would improve investor protections and reduce systemic risks. We look forward to working with our fellow Commissioners and the staff, as well as partnering with market participants to shorten the settlement cycle as soon as possible.”

The move to T+2 in the U.S. is contingent upon obtaining regulators’ support to amend applicable rules in a timely manner, and upon successfully completing industry-wide testing during Q2 and Q3 2017.

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