Announcements

03.29.17

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.

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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                          rgodbolt@joneskeller.com

Samuel E. Wing                                   303-785-1648                          sewing@joneskeller.com

Robert H. Davenport                             303-573-1600                        bdavenport@joneskeller.com

Brad H. Hamilton                                303-785-1615                          bhamilton@joneskeller.com

David A. Thayer                                  303-785-1623                         dthayer@joneskeller.com

Cyrus Rajabi                                        303-785-1625                          crajabi@joneskeller.com

Adam J. Fogoros                                  303-785-1618                          adamf@joneskeller.com

David Zisser                                        303-573-1600                          dzisser@joneskeller.com

Glen A. Payne                                      303-573-1600                          gpayne@joneskeller.com

Melissa D. Hubbard                             303-785-1624                          mhubbard@joneskeller.com

Christopher R. Johnson                        303-785-1669                          cjohnson@joneskeller.com

Leif H. Olson                                       303-785-1607                          lolson@joneskeller.com

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This information is not intended as legal advice. Readers should seek specific legal advice before acting with regard to the subjects mentioned herein.