Concerns arise over a delay in SEC proposal to shorten trade settlement from T+3.
Following a delay from the US Securities and Exchange Commission (SEC) to issue a proposal on shortening the trade settlement cycle by one day from T+3 to T+2, SEC Commissioner Michael S. Piwowar just voiced his concerns in an official statement.
When orders to buy/sell securities are executed in U.S. stocks markets, resulting in a trade, these trades are settled in three days after the trade date (T+3).
Shortening this settlement cycle by one day to T+2 is expected to improve market efficiency, and reduce risk, while conforming to settlements cycles with other financial markets abroad. The change would require firms to adjust their post-trade systems and clearing agreements, among other revisions, yet only by 1 day - leaving 2 days for the trade settlement cycle to complete.
Industry support for T+2
SEC Commissioner Piwowar said that it had been just over a year since he and Commissioner Stein had issued a joint statement in support of a proposal to shorten the trade settlement cycle, which had received industry support.
I absolutely agree with Cmrs Piwowar & Stein on their T+2 statement; would also support T+1 or straight-thru https://t.co/0F36oFChZk
Although this project was added to the agency's agenda with a June 2016 action date, the delay thus far was noted as βunacceptableβ causing the commissioner to issue an official statement on the delay, as the proposal has yet to be published by the SEC.
He noted that - aside from the delay causing his own frustrations over the matter - it was detrimental to efforts to improve investor protection, and left market participants wondering.
In addition, he wrote that the failure for the proposal to be made was in contravention of the agency rule list published in the most recent Regulatory Flexibility Agenda.
Furthermore, the settlement period also allows corporations such as banks, clearing firms and brokerages to carry related transaction values which help buffer their balance sheets or accounting processes - even if only for a few days at a time.
These 'times' (or settlement durations) can add up to millions or billions in unsettled trade value, which can also help with buffering Risk Management related to clearing or required margin/collateral for counterparties and dealers. Conversely, this capital or collateral that would otherwise be freed up from a T+0 instantaneous settlement period could be put to work elsewhere, as explained by Dr. Jock Percy, CEO of Perseus, in a guest article on Finance Magnates in May.
Unsettled settlement issues
For now, the SEC proposal remains literally unsettled, until it is published for public commentary. Once the proposal is made, then steps typically involved before new rulemaking is enacted would take place, including a public comment period - and if passed T+2 would speed up trade settlement for US stock markets by a third.
The news follows the SEC's announcement earlier today that the Chief of its Whistleblower office is slated to step down, as reported by Finance Magnates this Friday.
Following a delay from the US Securities and Exchange Commission (SEC) to issue a proposal on shortening the trade settlement cycle by one day from T+3 to T+2, SEC Commissioner Michael S. Piwowar just voiced his concerns in an official statement.
When orders to buy/sell securities are executed in U.S. stocks markets, resulting in a trade, these trades are settled in three days after the trade date (T+3).
Shortening this settlement cycle by one day to T+2 is expected to improve market efficiency, and reduce risk, while conforming to settlements cycles with other financial markets abroad. The change would require firms to adjust their post-trade systems and clearing agreements, among other revisions, yet only by 1 day - leaving 2 days for the trade settlement cycle to complete.
Industry support for T+2
SEC Commissioner Piwowar said that it had been just over a year since he and Commissioner Stein had issued a joint statement in support of a proposal to shorten the trade settlement cycle, which had received industry support.
I absolutely agree with Cmrs Piwowar & Stein on their T+2 statement; would also support T+1 or straight-thru https://t.co/0F36oFChZk
Although this project was added to the agency's agenda with a June 2016 action date, the delay thus far was noted as βunacceptableβ causing the commissioner to issue an official statement on the delay, as the proposal has yet to be published by the SEC.
He noted that - aside from the delay causing his own frustrations over the matter - it was detrimental to efforts to improve investor protection, and left market participants wondering.
In addition, he wrote that the failure for the proposal to be made was in contravention of the agency rule list published in the most recent Regulatory Flexibility Agenda.
Furthermore, the settlement period also allows corporations such as banks, clearing firms and brokerages to carry related transaction values which help buffer their balance sheets or accounting processes - even if only for a few days at a time.
These 'times' (or settlement durations) can add up to millions or billions in unsettled trade value, which can also help with buffering Risk Management related to clearing or required margin/collateral for counterparties and dealers. Conversely, this capital or collateral that would otherwise be freed up from a T+0 instantaneous settlement period could be put to work elsewhere, as explained by Dr. Jock Percy, CEO of Perseus, in a guest article on Finance Magnates in May.
Unsettled settlement issues
For now, the SEC proposal remains literally unsettled, until it is published for public commentary. Once the proposal is made, then steps typically involved before new rulemaking is enacted would take place, including a public comment period - and if passed T+2 would speed up trade settlement for US stock markets by a third.
The news follows the SEC's announcement earlier today that the Chief of its Whistleblower office is slated to step down, as reported by Finance Magnates this Friday.
AI in Trading Must Comply with Commodity Laws, CFTC Warns
Executive Interview with Elina Pedersen | Your Bourse | FMLS:24
Executive Interview with Elina Pedersen | Your Bourse | FMLS:24
Executive Interview with Elina Pedersen, Chief Revenue Officer at Your Bourse at the Finance Magnates London Summit 2024
#fmls #fmls24 #fmevents #RetailTrading #FintechInnovation #nvidia #DigitalAssets #GlobalFinance #globalbanking
π£ Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
π LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
π Facebook: https://www.facebook.com/FinanceMagnatesEvents
πΈ Instagram: https://www.instagram.com/fmevents_official
π¦ Twitter: https://twitter.com/F_M_events
π₯ TikTok: https://www.tiktok.com/@fmevents_official
βΆοΈ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Executive Interview with Elina Pedersen, Chief Revenue Officer at Your Bourse at the Finance Magnates London Summit 2024
#fmls #fmls24 #fmevents #RetailTrading #FintechInnovation #nvidia #DigitalAssets #GlobalFinance #globalbanking
π£ Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
π LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
π Facebook: https://www.facebook.com/FinanceMagnatesEvents
πΈ Instagram: https://www.instagram.com/fmevents_official
π¦ Twitter: https://twitter.com/F_M_events
π₯ TikTok: https://www.tiktok.com/@fmevents_official
βΆοΈ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Executive Interview with Rauan Khassan | TradingView | FMLS:24
Executive Interview with Rauan Khassan | TradingView | FMLS:24
Executive Interview with Rauan Khassan from TradingView at the Finance Magnates London Summit 2024
#fmls #fmls24 #fmevents #RetailTrading #FintechInnovation #nvidia #DigitalAssets #GlobalFinance #globalbanking
π£ Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
π LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
π Facebook: https://www.facebook.com/FinanceMagnatesEvents
πΈ Instagram: https://www.instagram.com/fmevents_official
π¦ Twitter: https://twitter.com/F_M_events
π₯ TikTok: https://www.tiktok.com/@fmevents_official
βΆοΈ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Executive Interview with Rauan Khassan from TradingView at the Finance Magnates London Summit 2024
#fmls #fmls24 #fmevents #RetailTrading #FintechInnovation #nvidia #DigitalAssets #GlobalFinance #globalbanking
π£ Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
π LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
π Facebook: https://www.facebook.com/FinanceMagnatesEvents
πΈ Instagram: https://www.instagram.com/fmevents_official
π¦ Twitter: https://twitter.com/F_M_events
π₯ TikTok: https://www.tiktok.com/@fmevents_official
βΆοΈ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Executive Interview with Nadia Edwards-Dashti | Harrington Star | FMLS:24
Executive Interview with Nadia Edwards-Dashti | Harrington Star | FMLS:24
Fintech Talent in the UK: The Human Factor Driving Industry Change π
What does it take to attract, retain, and upskill the best fintech talent in todayβs rapidly evolving UK market? In this engaging interview, Nadia Edwards-Dashti, Chief Customer Officer at Harrington Star, explores the future of talent recruitment, the rise of sales roles, and how AI is reshaping the industryβwithout replacing the human touch.
#fmls #fmls24 #fmevents #recruitment #financialcareers
π£ Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
π LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
π Facebook: https://www.facebook.com/FinanceMagnatesEvents
πΈ Instagram: https://www.instagram.com/fmevents_official
π¦ Twitter: https://twitter.com/F_M_events
π₯ TikTok: https://www.tiktok.com/@fmevents_official
βΆοΈ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Fintech Talent in the UK: The Human Factor Driving Industry Change π
What does it take to attract, retain, and upskill the best fintech talent in todayβs rapidly evolving UK market? In this engaging interview, Nadia Edwards-Dashti, Chief Customer Officer at Harrington Star, explores the future of talent recruitment, the rise of sales roles, and how AI is reshaping the industryβwithout replacing the human touch.
#fmls #fmls24 #fmevents #recruitment #financialcareers
π£ Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
π LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
π Facebook: https://www.facebook.com/FinanceMagnatesEvents
πΈ Instagram: https://www.instagram.com/fmevents_official
π¦ Twitter: https://twitter.com/F_M_events
π₯ TikTok: https://www.tiktok.com/@fmevents_official
βΆοΈ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Executive Interview with Roberto Politano | Finnovate Finance | FMLS:24
Executive Interview with Roberto Politano | Finnovate Finance | FMLS:24
Executive Interview with Roberto Politano from Finnovate Finance at the Finance Magnates London Summit 2024
#fmls #fmls24 #fmevents #RetailTrading #FintechInnovation
π£ Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
π LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
π Facebook: https://www.facebook.com/FinanceMagnatesEvents
πΈ Instagram: https://www.instagram.com/fmevents_official
π¦ Twitter: https://twitter.com/F_M_events
π₯ TikTok: https://www.tiktok.com/@fmevents_official
βΆοΈ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Executive Interview with Roberto Politano from Finnovate Finance at the Finance Magnates London Summit 2024
#fmls #fmls24 #fmevents #RetailTrading #FintechInnovation
π£ Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
π LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
π Facebook: https://www.facebook.com/FinanceMagnatesEvents
πΈ Instagram: https://www.instagram.com/fmevents_official
π¦ Twitter: https://twitter.com/F_M_events
π₯ TikTok: https://www.tiktok.com/@fmevents_official
βΆοΈ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
#fmls #fmls24 #fmevents #cyptotrading #DigitalAssets #pepperstone
π£ Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
π LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
π Facebook: https://www.facebook.com/FinanceMagnatesEvents
πΈ Instagram: https://www.instagram.com/fmevents_official
π¦ Twitter: https://twitter.com/F_M_events
π₯ TikTok: https://www.tiktok.com/@fmevents_official
βΆοΈ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
#fmls #fmls24 #fmevents #cyptotrading #DigitalAssets #pepperstone
π£ Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
π LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
π Facebook: https://www.facebook.com/FinanceMagnatesEvents
πΈ Instagram: https://www.instagram.com/fmevents_official
π¦ Twitter: https://twitter.com/F_M_events
π₯ TikTok: https://www.tiktok.com/@fmevents_official
βΆοΈ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!