Wall Street Implements T+1 Settlement for Faster Trades

New SEC rule aims to reduce risk and improve market efficiency but poses initial challenges for investors and firms.

US stock trades will now settle in one business day instead of two, following a new SEC regulation.
The change is expected to reduce counterparty risk and improve liquidity in financial markets.
Initial implementation may see increased transaction failures and operational challenges.
Global markets like Canada, Mexico, and Argentina have already adopted the T+1 system.
Industry participants have prepared extensively, but concerns remain about international trade coordination and liquidity.