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Risk Alert: Shortening the Securities Transaction Settlement Cycle

March 27, 2024

Today the Division of Examinations published a Risk Alert regarding the shortening of the securities transaction settlement cycle.  On May 28, 2024, the standard settlement cycle for most broker-dealer transactions in the U.S. will shorten from two business days after the trade date to one business day after the trade date (“T+1”).   This is also the compliance date for new rules related to the processing of institutional trades by broker-dealers and certain clearing agencies, as well as certain recordkeeping amendments applicable to registered investment advisers. 

It is critical that registrants and other market participants prepare for the shortened settlement cycle and understand the impacts of T+1 and the final rules to identify necessary changes and critical dependencies in order to successfully manage this transition. 

To assess registrant preparedness, EXAMS intends to continue engaging with registrants through examinations and outreach.  The Risk Alert provides registrants with additional information about the scope and content of the examinations and outreach. 

View the Risk Alert:  Shortening the Securities Transaction Settlement Cycle

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