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ARTICLE · 02 NOVEMBER 2017

T+2 Settlement Takes Effect

A&O Shearman
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On 5 September 2017, the securities industry successfully implemented an amended rule adopted by the SEC last March that shortens the standard settlement cycle for most broker-dealer securities transactions...

United StatesCorporate/Commercial Law
A&O Shearman
A&O Shearman
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On 5 September 2017, the securities industry successfully implemented an amended rule adopted by the SEC last March that shortens the standard settlement cycle for most broker-dealer securities transactions by one business day, to two business days following the trade date, thus bringing the U.S. settlement cycle in line with European markets.

As mentioned in our Q1 2017 Memorandum, the amended rule is aimed at enhancing efficiency, preventing market and liquidity risk arising from unsettled securities trades and ensuring a co-ordinated and expeditious transition by market participants to a shortened standard settlement cycle.

The SEC's statement on T+2 implementation is available at:

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