On September 28, the Securities and Exchange Commission proposed amending SEC Rule 15c6-1 to shorten the settlement cycle for securities transactions involving broker-dealers from three business days after the trade date (T+3) to two business day after the trade date (T+2).

In the rule proposal, the SEC stated that shortening the settlement cycle from three business days to two business days may reduce credit, market and liquidity risk. The SEC further noted that the proposal is consistent with its focus on the resiliency and efficiency of the national clearance and settlement system and the role of systemically important financial market utilities in managing risk.

Comments on the proposed amendment will be due to the SEC 60 days after the proposal is published in the Federal Register