T+2 Is Almost Here
The SEC will adopt an amendment to shorten the standard settlement cycle for most broker-dealer securities transactions by one business day. What was once known as T+3 will become T+2 on Monday, September 5.
Are you ready?
The SEC will adopt an amendment to shorten the standard settlement cycle for most broker-dealer securities transactions by one business day. What was once known as T+3 will become T+2 on Monday, September 5.
For example, if you sell shares on Tuesday, starting September 5, the transaction would settle on Thursday, instead of Friday as it has been in the past.
SEC Acting Chairman Michael Piwowar said, “As technology improves, more products emerge, and trading volumes grow, it is increasingly obvious that the outdated T+3 settlement cycle is no longer serving the best interests of the American people.”
Your Investment Account Manager software is ready for this change. All you have to do is make sure it is up-to-date (once September 5 rolls around) and the program will handle all new transactions appropriately.
The SEC has set up a specific email contact for any inquiries about this new change.
See the official SEC press release here, and an article from FINRA here.