Commissioner Voices Frustration Over Delay in SEC Proposal for T+2 Settlement

[kreslik.news]

Amid a delay from the US Securities and Exchange Commission (SEC) to issue a proposal on shortening the trade settlement cycle by one day from T+3 to T+2, SEC Commissioner Michael S. Piwowar just voiced his concerns in an official statement.

When orders to buy/sell securities are executed in U.S. stocks markets – resulting in a trade, these trades are settled in three days after the trade date (T+3).

Shortening this settlement cycle by one day to T+2 is expected to improve market efficiency, and reduce risk – while conforming to settlements cycles with other financial markets abroad. The change would require ... (read more)