The US Securities and Exchange Commission adopted an amendment to shorten by one business day the standard settlement cycle for most broker-dealer securities transactions.  Currently, the standard settlement cycle for these transactions is three business days, known as T+3.  The amended rule shortens the settlement cycle to two business days, T+2.

The amended rule is designed to enhance efficiency, reduce risk and ensure a coordinated and expeditious transition by market participants to a shortened standard settlement cycle.

Broker-dealers will be required to comply with the amended rule beginning on September 5, 2017.

View the final rule.

View the SEC fact sheet.