Industry analysis, product news, and thought leadership from Loffa Interactive Group's team of settlement technology and compliance experts.
T+1 Settlement Broke Your Cash Verification Process. Here’s What to Do About It. Why Pre-Trade Fund Verification Can’t Wait for Post-Trade Discovery On May 28, 2024, US equity markets moved to T+1 settlement. The industry had years to prepare. Most firms updated their clearing systems, adjusted their reconciliation timelines, and declared victory. Then the edge […]
Automating Letters of Free Funds: Why Email and Fax Still Fail in a T+1 World The Operational Reality of Custodian Verification—and What Actually Scales It’s 3:47 PM on a Friday. Quarter-end. Your operations team is staring at 47 unanswered Letters of Free Funds. The custodian contacts you have on file are outdated—three people have left […]
What Software Do Executing Brokers Use for Regulation T Free Funds Verification? The Letter of Free Funds Process—and Why Most Firms Still Do It Wrong Rey Acosta opened a brokerage account in October 2023. By January 2024, that account held $2.00. Then, according to the SEC’s March 2025 complaint, Acosta initiated four ACH transfers totaling […]
Navigating Reg-T and Letters of Free Funds: A Broker’s Guide Hey there, finance enthusiasts! Today, we’re diving into the world of securities trading, specifically the hoops brokers jump through to comply with Regulation T (Reg-T) and handle those all-important Letters of Free Funds. Buckle up, because this ride through the regulatory landscape is more exciting […]
Affirmation Alone Does Not Ensure Reg-T Compliance: The Importance of Verifying Funds and Prime Broker Status Navigating the intricate world of financial regulations, it’s crystal clear that a simple nod of affirmation by itself falls short of ensuring compliance with the meticulous requirements of Regulation T (Reg-T). While nodding along in agreement plays its part, […]
Decoding Regulation T: Implications for Today’s Market In the dynamic landscape of financial markets, understanding regulatory frameworks is crucial for operational excellence and compliance. Regulation T (Reg-T), issued by the Federal Reserve Board, plays a pivotal role in governing credit transactions in securities markets. Below we dive into the nuances of Regulation T, examining its […]
Understanding SEC Rule 17a-4, Regulation T 220.8, and the Process of Sending a Letter of Free Funds to the Custodian In the context of securities trading and brokerage operations, ensuring compliance with regulatory requirements is paramount. This write-up delves into how SEC Rule 17a-4, in conjunction with Regulation T Section 220.8, relates to the practice […]
The T+1 Countdown: Strategies for Preventing Freeriding The financial industry is on the cusp of a significant transformation with the shift from a T+2 to a T+1 settlement cycle. This move, designed to enhance the efficiency of securities transactions and reduce associated risks, inevitably brings to the fore the issue of “freeriding” – a practice […]
For many financial firms, the reams & reams of paper that are required to keep the company humming along are not always at the top of the list of executive concerns. However, as companies begin the yearend budgetary process, it might be time to cast a more critical eye on the mountains of paper that […]
For a little more than a decade now, The SEC has been putting more emphasis on enforcing the legislation that governs cash accounts, commonly known as Reg T. Though, to this day there is still a great deal of brokers looking the other when it comes to trading out of cash accounts before a previous […]
How Much Do Financial Firms Really Know About SEC Regulation T? Most financial professionals can quote parts of Regulation T — margin requirements, credit restrictions, or the infamous “payment period” rule. But few fully grasp how Reg T now interacts with the SEC’s new T+1 settlement regime and what that means for […]
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