As we are all aware, the financial services industry, in coordination with applicable regulators, is planning to shorten the settlement cycle for U.S. equities, corporate bonds, municipal bonds, unit investment trusts (UITs), and financial instruments comprised of these security types (e.g. ADRs, ETFs), from the current trade date plus three business days (T+3) to trade date plus two business days (T+2) on September 5, 2017. This week, the SEC gave their approval of the planned change. Click Here to read the full story.
Executing and Custodial Broker/Dealers, along with other market stakeholders, will need to assess all of the potential impacts of a transition to a T+2 settlement cycle-including examining how their systems and processes for settling trades would need changed to support their clients, as well as their role in maintaining the integrity of the clearing/settlement system and post trade regulatory requirements.
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