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Statement Regarding Proposals to Shorten the Trade Settlement Cycle

Commissioner Michael S. Piwowar and Commissioner Kara M. Stein

June 29, 2015

Recently, an industry-led committee of members across the securities industry issued a white paper outlining the timeline and actions required to move from a three-day (T+3) trade settlement cycle to a two-day (T+2) trade settlement cycle for securities transactions in the United States by the third quarter 2017.[1] We applaud industry’s leadership in seeking changes to mitigate risks and improve capital efficiency.

Earlier this year, the Commission’s Investor Advisory Committee encouraged the Commission and market participants to move forward on reducing the settlement cycle, which would improve investor protections and reduce systemic risks.[2]

We look forward to working with our fellow Commissioners and the staff, as well as partnering with market participants to shorten the settlement cycle as soon as possible.

[1] See “Shortening the Settlement Cycle: The Move to T+2” available at Currently, the Commission’s rules require settlement of trades in equities, corporate and municipal bonds, and unit investment trusts (UIT) three business days after a trade is executed, which is commonly referred to as T+3. Trade settlement is the date upon which security ownership transfers.

[2] See “Recommendation of the Investor Advisory Committee: Shortening the Trade Settlement Cycle in U.S. Financial Markets (February 12, 2015)” available at

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