New York, NY, February 15, 2023 – SIFMA today issued the following statement from president and CEO Kenneth E. Bentsen, Jr. on the Securities and Exchange Commission’s (SEC) adoption of rules and rule amendments to shorten the standard settlement cycle for most transactions:

“The industry strongly supports the transition of securities settlement from T+2 to T+1, and in fact has been working on the project since 2020.  As we know from leading the industry effort with our partners at the Investment Company Institute (ICI) and The Depository Trust & Clearing Corporation (DTCC) to move to T+2 in 2017 and T+3 in 1995, shortening the settlement cycle is multi-year effort that involves significant preparation and testing.

“We appreciate the Commission finalizing its rule to provide certainty, but we strongly disagree with the implementation date of May 2024.  As we have repeatedly stated for the past two years, the industry needs ample time to execute the transition and doing so following the Labor Day weekend 2024 in coordination with Canada is the optimal date. It is the industry, and not the regulators, who will do the work to shorten the cycle and rushing the implementation for no apparent reason will only add risk when the underlying goal is to mitigate risk.

“SIFMA is, however, pleased that the SEC has supported a ‘policies and procedures’-based approach for SEC Rule 15c6-2, which will provide greater flexibility to both broker-dealers and their customers with respect to the allocation, confirmation, and affirmation process.

“As the industry moves forward in the effort to significantly reduce the current settlement cycle, we would encourage market participants to refer to The T+1 Securities Settlement Industry Implementation Playbook, developed by SIFMA, ICI, and DTCC, together with Deloitte LLP.  This guide outlines a detailed approach to identifying the implementation activities, timelines, dependencies, and risk impacts that market participants should consider as they prepare for the transition to T+1 settlement.”

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SIFMA is the leading trade association for broker-dealers, investment banks and asset managers operating in the U.S. and global capital markets. On behalf of our industry’s one million employees, we advocate on legislation, regulation and business policy affecting retail and institutional investors, equity and fixed income markets and related products and services. We serve as an industry coordinating body to promote fair and orderly markets, informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum