T+1 = Here We Come!

On February 15, 2023, the Securities and Exchange Commission (SEC) adopted a set of rule amendments and new rules to facilitate the shortening of the standard settlement cycle for most broker-dealer transactions from two business days after the trade date (or T+2) to one business day after the trade date (or T+1).

The compliance date for the T+1 timeline is next Tuesday, May 28, 2024 – immediately after Memorial Day. Yesterday, SEC Chair Gensler issued a statement on the upcoming implementation date.

The SEC originally established a standard settlement cycle of three business days (or T+3) for most securities transactions in 1993. In 2017, the SEC shortened the standard settlement cycle from T+3 to T+2.