SEC Issues Proposal on the Clearance and Settlement of Securities

The SEC has issued a proposed rule, Shortening the Securities Transaction Settlement Cycle. The proposed rule would:

• Shorten the standard settlement cycle for most broker-dealer transactions from two business days after trade to one.
• “Eliminate the separate T+4 settlement cycle for firm commitment offerings priced after 4:30 p.m.”
• “Improve the processing of institutional trades by proposing new requirements for broker-dealers and registered investment advisers intended to improve the rate of same-day affirmations.”
• “Facilitate straight-through processing by proposing new requirements applicable to clearing agencies that are central matching service providers.”

For more information, see the press release and fact sheet, as well as statements by SEC Chair Gary Gensler and Commissioners Allison H. Lee, Caroline A. Crenshaw, and Hester M. Peirce, on the SEC’s Web site.