Starting from May 28, the US Securities and Exchange Commission SEC will require most broker-dealer transactions to be settled within one business day after the trade date, also known as the T1 arrangement.
The shortened securities settlement cycle, moving from T2, will prohibit broker-dealers functioning in the US market from effecting or entering into a contract for the purchase or sale of a security that provides for payment of funds and delivery of securities later than the first business day after the date of contract, according to the SEC’s new rules.
The regulatory body also pointed out that the rules might require broker-dealers to...
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