Wall Street Prepares for T+1 Settlement Shift
TL;DR Summary
Wall Street is transitioning to a shorter T+1 settlement cycle for trades, effective May 28, to reduce risk and improve market efficiency. This change, mandated by the SEC, will initially increase transaction failures as firms adjust to the new timeline. The move follows similar changes in India and China, with Canada, Mexico, and Argentina adopting it a day earlier. While the shift aims to enhance liquidity and reduce counterparty risk, it may also transfer risks to other market areas, such as foreign exchange and securities lending.
- Wall Street braces for faster trade settlement Reuters.com
- The SEC’s T+1 settlement rule will transform stock trading: Here’s what you need to know. MarketWatch
- Meme stock revival comes ahead of shift to T+1 settlement (NYSE:GME) Seeking Alpha
- All hands on deck as U.S. moves to T+1 settlement on May 28 Pensions & Investments
- New T+1 Rule Is Speeding Up Settlement Time, and Wall Street Is Worried Bloomberg
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