The SEC finalized a set of rule changes to shorten the standard settlement cycle for most broker-dealer transactions in securities, reducing the cycle from two business days after the trade date to one.
The proposed rule changes would also enhance protections of customer assets managed by registered investment advisors as well as revise the commission’s regulations under the Privacy Act.
In addition to shortening the standard settlement cycle, the final rules aim to improve the processing of institutional trades, the SEC said. The commission also proposed two additional rules regarding safeguarding advisory client assets and revision of the Privacy Act rule.
The final rules will go into effect 60 days after publication in the Federal Register. The comment period on the proposal will remain open for 60 days following the publication. The compliance date for the final rules is May 28, 2024. Read more.