On March 22, 2017, the US Securities and Exchange Commission approved shortening the standard settlement cycle for most broker-dealer securities transactions to two business days after the date of the trade. This new settlement cycle, known as T+2, will replace the current T+3 standard for settling most securities transactions three business days after the trade. Broker-dealers will be required to comply with the new T+2 settlement requirements beginning on September 5, 2017. This Legal Update discusses the rule change and related practical considerations.
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