Effective September 5, 2017, the standard settlement cycle for most securities transactions will be shortened to two business days after the trade date (T + 2). This change from the current T+ 3 settlement under SEC Rule 15c6-1(a), impacts most broker-dealer securities transactions, including municipal bonds.
Industry Impact
The shortened settlement cycle helps reduce the risk of market changes that affect trade prices, and lessens liquidity and capital pressures on firms and clearing agencies. This change also harmonizes U.S. settlement terms with the T+2 cycle already in place in most European and Asian markets.
The SEC is promoting further improvements to the settlement cycle and is studying a move to T+1. The results of the study and further recommendations are expected within 3 years.
Effect on Licensing Exams
This rule change will impact all FINRA and MSRB licensing exams administered after September 5, 2017.
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