SEC Proposes T+2 Settlement Cycle
Client Memorandum

Created date


On September 28, in a long-anticipated move, the SEC proposed to shorten the standard settlement cycle for most broker-dealer transactions to two business days after the trade date (T+2) from the current three business day cycle (T+3). The proposal represents the near-culmination of ongoing industry efforts to move to a T+2 settlement cycle, with the most recent initiative led by a working group whose members include the Depository Trust & Clearing Corporation, the Investment Company Institute, the Securities Industry and Financial Markets Association and other market participants.