US Markets Transition to Next-Day Trade Settlement

New T+1 rule aims to reduce risk and improve efficiency but poses short-term challenges for ETFs and market participants.

The SEC-mandated T+1 settlement cycle took effect on Tuesday for U.S. securities.
Investors and regulators anticipate initial trade failures and increased transaction costs.
ETF issuers face difficulties due to mismatched settlement schedules across jurisdictions.
Market participants have prepared for the transition, but liquidity and collateral management remain concerns.
Experts expect the market to adapt within weeks, despite early disruptions.