The Securities and Exchange Commission released Wednesday a risk alert about the upcoming transition on May 28 to T+1, the shortening of the securities transaction settlement cycle for most broker-dealers from two business days after the trade date to one.
May 28 is also the compliance date for new rules related to the processing of institutional trades by broker-dealers and certain clearing agencies, as well as certain recordkeeping amendments applicable to RIAs.
The risk alert warns that it's "critical that registrants and other market participants prepare for the shortened settlement cycle and understand the impacts of T+1″ to successfully manage the transition.
