T+1 Movement Accelerates

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    The movement to accelerate the U.S. securities settlement cycle is gaining momentum with backing from major industry groups and the chairman of the Securities and Exchange Commission. A report from the Securities Industry and Financial Markets Association, the Investment Company Institute, and the Depository Trust and Clearing Corp. says shortening the settlement cycle to T+1 ??? settling a trade one business day after it is executed- from T+2, or two business days, will enhance efficiency and reduce risks and costs for the industry. An industry steering committee and industry working group will develop a consensus for an accelerated settlement cycle.