Capital Markets & Securities Law Watch

Last year, the Securities and Exchange Commission adopted its final rule to shorten the settlement cycle for most broker-dealer securities transactions to one business day after the trade date (T+1). Previously, the standard settlement cycle was two business days after the trade date (T+2).

As the U.S. prepares to transition to a T+1 practice for securities settlements on May 28, 2024, Securities and Exchange Commission (SEC) Chair Gary Gensler gave a speech to the European Commission on January 25, 2024, in which he commented, "The longer it takes for a trade to settle…the more risk our markets assume and the more risk fundamentally we all assume."