Wall Street has transitioned to a T+1 stock settlement cycle, marking the fastest settlement of trades in a century. The U.S. Securities and Exchange Commission (SEC) mandated the change, effective May 28, 2024, requiring broker-dealers and market participants to settle trades within one business day. This shift aims to reduce risk and improve efficiency in the U.S. securities market, particularly highlighted by the GameStop mania. However, it presents unique challenges for exchange-traded funds (ETFs) and market makers, who must adapt to the new timeline. The change, which also affects corporate bond trades, follows the SEC's rule adoption in February 2023 and is expected to benefit investors by taking risk out of the system. While the transition has seen some temporary delays, the Securities Industry and Financial Markets Association (SIFMA) expressed optimism about the progress. Foreign investors are bracing for potential difficulties in securing dollars before the deadline, which could result in failed trades.
Wall Street's faster trade settlement sees some temporary bumps https://t.co/uKt3xAnyNo https://t.co/wmTeYtyGDB
Reminder – T-1 Settlement Starts Today, Tuesday, May 28, 2024 https://t.co/XwQw4PhEz2 #Securities #Amendment #Rules @jonnajarian https://t.co/FV7ylXBFzH
The finance industry met a key target to process US securities trades faster on the first day of new one-day settlement rules, although there were some delays to overnight systems. https://t.co/bUNrUkZhTU
T+1 is the new T+2
And T+2 is gone! This was not an easy change to implement, but it's one more step toward the goal of real-time settlement. https://t.co/ySQ7g3UwXp
Day 1 let’s gooo https://t.co/wECwW9ef41
🔵 FINANCIAL MARKETS ASSOCIATION PLEASED WITH SHIFT TO FASTER TRADE SETTLEMENT Full Story → https://t.co/vwSJrB6q2r The Securities Industry and Financial Markets Association (Sifma) said on Wednesday it is pleased with the transition to faster trade settlement, adding it… https://t.co/q4oXxUawzV
⚠️ FINANCIAL MARKETS ASSOCIATION SIFMA SAYS IT IS OPTIMISTIC ABOUT THE PROGRESS OF THE TRANSITION TO FASTER (T+1) SETTLEMENT TO DATE
Happy Day One! https://t.co/XjAxaHvwvg
It took Wall Street 100 years to get the settlement time down to T+1. Now it works faster but the paper people are really stressed out all the time.
Great job. You’ve moved to T+1 settlement because it enhances capital efficiency and reduces risk. If only there was a technology that could unlock T+0 settlement….Guess what? There is. It’s called #tokenization made possible through blockchain tech. https://t.co/KGazM7D4aN
“On February 15, 2023, the SEC adopted rule amendments to shorten the standard settlement cycle for most broker-dealer transactions from “T+2” to “T+1” …. The compliance date for the rule amendments is May 28, 2024, at which point the standard settlement cycle will be T+1.” https://t.co/w85Ma5xj50
New T+1 stock-settlement rule could help active traders avoid getting their accounts frozen https://t.co/VSuiAvRkSm
New T+1 stock-settlement rule could help prevent these trading violations https://t.co/Dif0cWEIik
#TradFi flexes its muscles… …with Wall Street finally returning to T+1 settlement a century later! 👏😆 https://t.co/lr5uH2JLwF
Reminder – T-1 Settlement Starts Today, Tuesday, May 28, 2024 https://t.co/XwQw4PhEz2 #Securities #Amendment #Rules @Mintz_Law https://t.co/mbH5RMpNbD
As the U.S. prepares to shorten its settlement cycle for equity and corporate bond trades, foreign investors are bracing for potential difficulty in securing dollars before the deadline that could result in failed trades. https://t.co/fMRBVLsUJi
Explainer: What to expect as US moves towards faster stock settlement https://t.co/GzftsJ9u99 https://t.co/q1d0bNE519
Today’s trading in U.S. securities markets is on a T+1 standard settlement cycle and will settle tomorrow. We @SECGov are closely monitoring the transition to a faster settlement cycle that will benefit investors and take risk out of the system.
Wall Street has returned to T+1 stock trading for the first time in a century. @rachelevans_ny explains what it means for markets https://t.co/7WFvxXnZdO https://t.co/2tMwxoCHgh
“The other big event of the week for markets is the return of T+1 — which will see trades settle in one day for the first time in 100 years.” Crypto ETFs and now this. How will advisers ever keep up with all of this innovation?!
Stock trade settlement moves to single day as GameStop mania underscores need for faster transactions https://t.co/P3KfxT4qjO
Rested up after a long holiday weekend? Good! Because stock trades will now move faster than ever as the T+1 settlement cycle begins today: https://t.co/jNViRZHzxo
Wall Street Moves to Fastest Settlement of Trades in a Century https://t.co/tL4beq8TxE
🔵 FACTBOX-AS US MOVES TOWARDS FASTER STOCK SETTLEMENT, WHERE ARE OTHER COUNTRIES? Full Story → https://t.co/xyQ6len5fI The U.S. Securities and Exchange Commission adopted a rule in February 2023 to shorten the settlement cycle for securities transactions from two business…
Nice primer on T+1 trade settlement, a new rule from the SEC that takes effect today via @greg_ritchie https://t.co/NIUPqc8Vjv via @markets
Happy T+1 Day https://t.co/GFyT3Jh6zR
Wall Street braces for faster trade settlement https://t.co/qDPHAcbvyj
Move to faster stock settlement creates unique hurdles for ETF market https://t.co/nKt2PllH57 https://t.co/574CB6zvEz
🔵 MOVE TO FASTER STOCK SETTLEMENT CREATES UNIQUE HURDLES FOR ETF MARKET Full Story → https://t.co/uaNC11UeAt The move to next-day settlement for trading in U.S. securities on Tuesday will require exchange-traded funds (ETFs) and the marketmakers to juggle multiple… https://t.co/oBJHgG1GJ3
🔵 WALL STREET BRACES FOR FASTER TRADE SETTLEMENT Full Story → https://t.co/VvEO4jIqs5 U.S. trading moves to a shorter settlement on Tuesday, which regulators hope will reduce risk and improve efficiency in the world's largest markets, but is expected to temporarily increase… https://t.co/xg5jN1cfEb
$SPY - Wall Street Moves to Fastest Settlement of Trades in a Century https://t.co/KVTuALVfH3
Reminder: Starting today, May 28th, the US SEC mandates all broker-dealers and market participants to settle trades on a "T+1 basis."
🇺🇸 #WallStreet Returns to T+1 Stock Trading After a Century – Bloomberg https://t.co/bSoTRRlmun https://t.co/bmmUesQNha