05.20.24

U.S. Stock Settlement Switch Faces Early Resilience Test

by: Laura Matthews and Sinead Cruise

Participants in U.S. securities markets face an early test of their ability to handle regulatory reforms to speed up trade settlement. Beginning May 28, U.S. stocks and corporate bonds must settle one business day after trading instead of two. Three days after the switch to T+1 settlement, global indexes will rebalance in a quarterly event, leaving some participants concerned that one of the largest trading days of the year could strain markets adjusting to the new regime.

Read the full article on Reuters