Reported 5 months ago
The U.S. market is undergoing a significant change as the settlement time for equities and other securities is being reduced to one day, known as T+1, after a new SEC rule takes effect. This faster settlement process aims to enhance market efficiency, reduce risk, and provide investors with their money and securities sooner. Market participants are preparing for the transition, with other countries like India already implementing similar changes. However, challenges such as potential trade fails and increased transaction costs may arise as firms adjust to the new settlement timeframe.
Source: YAHOO