T+2 settlement is finally here

Beginning September 5, 2017, the US Securities and Exchange Commission (SEC) will require asset managers to shorten their standard settlement cycle for most securities to two business days. Designed to reduce counterparty and systematic risk, and improve capital efficiencies, this change will require asset managers to take a close look at their settlement performance and practices.

Firms that are quick to recognize their existing limitations and take steps now to remedy those shortcomings should be on track for T+2 implementation later this year and well positioned to deal with the possibility of T+1 settlement down the road.