05.28.24

Wall Street Returns to T+1 Stock Trading After a Century

by: Greg Ritchie

Under new U.S. Securities and Exchange Commission rules, stock trades in the United States will now settle in one day, for the first time in a century. The change, halving the time it takes to complete every transaction, also occurred in jurisdictions including Canada and Mexico. The switch to the system known as T+1, abandoned a century ago as volumes became unwieldy, is ultimately intended to reduce risk in the financial system. Yet there are worries about potential growing pains, including that international investors may struggle to source dollars on time, global funds will move at different speeds to their assets and everyone will have less time to fix errors.

Read the full article on Bloomberg