Sec Adopts T+2 Settlement Cycle For Securities Transactions
Date: March 27, 2017
From: Reid A. Godbolt, Esq.
The Securities and Exchange Commission (“SEC”) on March 22, 2017, adopted an amendment to Rule 15c6-1(a) under the Securities Exchange Act of 1934 to shorten by one business day the standard settlement cycle for most broker-dealer securities transactions. As you probably know, the standard settlement cycle for security transactions is three business days, or “T+3.” Unless otherwise expressly agreed to by the parties at the time of the transaction the new settlement cycle will be T+2. Transactions that already settle on a shorter settlement cycle will not be affected by the amendment.
The T+2 requirement would not apply to certain specified categories of securities and would not affect the settlement cycle for firm commitment underwritings.
The compliance date for the amendment to Rule 15c6-1(a) is September 5, 2017.
If you have any questions concerning the above, feel free to contact the following members of our securities practice group:
Reid A. Godbolt 303-573-6767 email@example.com
Samuel E. Wing 303-785-1648 firstname.lastname@example.org
Robert H. Davenport 303-573-1600 email@example.com
Brad H. Hamilton 303-785-1615 firstname.lastname@example.org
David A. Thayer 303-785-1623 email@example.com
Cyrus Rajabi 303-785-1625 firstname.lastname@example.org
Adam J. Fogoros 303-785-1618 email@example.com
David Zisser 303-573-1600 firstname.lastname@example.org
Glen A. Payne 303-573-1600 email@example.com
Melissa D. Hubbard 303-785-1624 firstname.lastname@example.org
Christopher R. Johnson 303-785-1669 email@example.com
Leif H. Olson 303-785-1607 firstname.lastname@example.org
This information is not intended as legal advice. Readers should seek specific legal advice before acting with regard to the subjects mentioned herein.