In May 2017, in Regulatory Notice 17-19, FINRA announced the SEC approval of a variety of its proposed rule amendments relating to the upcoming move of the U.S. securities markets to the T+2 settlement cycle.
In order to coincide with the effective date for the revisions to SEC Rule 15c6-1(a), these amendments will become effective on September 5, 2017, and relate to the following FINRA rules:
- Rule 2341 (Investment Company Securities);
- Rule 11140 (Transactions in Securities ‘‘Ex-Dividend,’’ ‘‘Ex-Rights,’’ or ‘‘Ex-Warrants’’);
- Rule 11150 (Transactions ‘‘Ex-Interest’’ in Bonds Which Are Dealt in ‘‘Flat’’);
- Rule 11210 (Sent by Each Party);
- Rule 11320 (Dates of Delivery) (this provision includes the definition of “Regular Way,” and refers to the new two business day delivery cycle);
- Rule 11620 (Computation of Interest);
- Rule 11810 (Buy-In Procedures and Requirements); and
- Rule 11860 (COD Orders).
We previously discussed these amendments in December 2016, at the time of their proposal.
FINRA has also issued an investor alert, entitled “T+2 is Coming,” to help explain to investors the impact of the upcoming market-wide changes.