The SEC finalized rule changes Feb. 23 to shorten the process for settling securities transactions from two business days to one.
SEC Chair Gary Gensler stated, “I support this rulemaking because it will reduce latency, lower risk, and promote efficiency as well as greater liquidity in the markets.”
The rule shortens the standard settlement cycle, improves the processing of institutional trades, and adds a new requirement to facilitate straight-through processing. The compliance date for the final rules is May 28, 2024.
