Home Daily Blitz SEC Commissioner Piwowar Blasts SEC Over Inaction on T+2 Settlement Migration
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SEC Commissioner Piwowar Blasts SEC Over Inaction on T+2 Settlement Migration

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barrons articleThe following is an excerpt from Chris Dieterich | July 8, 2016 | Barrons.com |

Powerful forces within the the financial industry want stock trades to be settled in two days instead of three.

On Friday, SEC Commissioner Michael Piwowar blasted his own agency for failing to advance the changes.

Piwowar said in a statement that the SEC’s “failure to promulgate such a proposal is in contravention of the agency rule list” and leaves “market participants wondering whether the Commission is truly committed to shortening the settlement cycle.”

Under SEC rules, stock trades must “settle” — with the buyer delivering cash and the seller handing over the securities — no later than three business days afterward. At issue: a proposal to shorten the trade-settlement cycle from three business days after a trade is executed (T+3) to two business days (T+2). Industry trade groups, including two of the SEC’s current commissioners, have backed a measure to make the change by next year. According to one plan of attack, regulators were to have published final rule changes and implementation dates by the end of last month, but didn’t get to it.

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