BDA Submits Comment Letter to the SEC on its Proposed Amendment to Shorten the Settlement Cycle to T+2

Today, BDA submitted its comment letter to the SEC on its request for comment on a proposed amendment to Rule 15c6-1(a) to shorten the settlement cycle from T+3 to T+2 and is designed to reduce systemic risk for U.S. market participants. You can view the BDA’s letter here.

BDA’s Letter:

• Requests that the SEC work with the Federal Reserve to ensure that broker-dealers have until T+5 to receive payment and do not have to liquidate customer transactions unnecessarily given the practical time constraints that will arise if the Reg T standard is shortened to T+4.

Additional Information:

• You can view the proposed rule and the SEC’s request for comment here.
• A copy of BDA’s December 2015 letter to MSRB’s proposal to shorten the settlement cycle can be viewed here.
• A copy of BDA’s April 2016 letter to FINRA’s request for comment on a shortened settlement cycle can be viewed here.