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 ‘unacceptable’ 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 ‘unacceptable’ 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.
BGC Group Secures Backing from Global Banks for New $600M Trading Platform
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
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#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 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:
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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