US Markets Transition to Faster T+1 Settlement Cycle

New rule aims to increase efficiency and reduce risk by halving the time for trade settlements starting May 28.

The SEC's new T+1 rule shortens the settlement period for trades from two days to one.
Market participants have been preparing for the transition with extensive testing and coordination.
The change is expected to enhance market resilience and liquidity, benefiting investors and reducing counterparty risk.
Other countries, including Canada and Mexico, are also moving to T+1, while Europe considers similar reforms.
Challenges include potential temporary increases in trade fails and the need for quicker error resolution.