Wall Street Accelerates to Single-Day Stock Settlements
TL;DR Summary
Wall Street has transitioned to a faster T+1 settlement cycle for securities transactions, reducing the time to settle trades from two days to one. This change aims to lower risk and improve market efficiency but may initially lead to increased trade failures and higher transaction costs. The shift follows the SEC's rule change and is part of a broader move to enhance capital efficiency and liquidity, spurred by the 2021 GameStop trading frenzy. Market participants are bracing for potential hiccups, especially during high-volume trading days.
- Wall Street ushers in new era of faster trade settlement Reuters
- T+1 settlement: What investors need to know Yahoo Finance
- Stock trade settlement moves to single day as GameStop mania underscores need for faster transactions CNBC
- This Wall Street Shake-Up Will Put Money in Your Hands Faster Barron's
- Explainer: What to expect as US moves towards faster stock settlement Reuters
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