T+1 - TSW Never Passive

March 2024

What is Changing?

T+1 is short for “trade date plus one day”, and it refers to the required settlement timeframe for equities traded in U.S. capital markets. Beginning in late May of this year, all such transactions must settle in one business day after the trade executes. This is a change from T+2 or “trade date plus two business days”.

Why the Change?

The U.S. Securities and Exchange Commission adopted a new rule to shorten the settlement process from two days to one day. This rule, effective on May 28, 2024, is “designed to benefit investors and reduce the credit, market, and liquidity risks in securities transactions faced by market participants.” Read more here https://www.sec.gov/news/press-release/2023-29.

Are we READY?

TSW has worked with brokers globally for over 10+ years to make sure they understand our requirement to match trades on trade date and stand prepared for T+1 settlement under the new rule. Yes, we are READY!

IMPORTANT DISCLOSURE: The content above is intended for informational purposes only. No part of this may be reproduced in any form, distributed, or referred to in any other publication, without express written permission of TSW.

©2024 Thompson, Siegel & Walmsley LLC (“TSW”). TSW is an investment adviser registered with the SEC. Registration does not imply a certain level of skill or training. All information contained herein is believed to be correct but accuracy cannot be guaranteed. TSW and its employees do not provide tax or legal advice. TSW is a trademark in the United States Patent and Trademark Office.

March 2024

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