Wall Street Accelerates to Single-Day Stock Settlements
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.
