On September 28, the Securities and Exchange Commission held an open meeting about a proposed shortening of the settlement cycle.

The SEC's staff has recommended that the settlement cycle for most broker-dealer transactions be shortened from three business days after trade date to two or, in the usual typographical abbreviation, from T + 3 to T + 2. The idea is of course to reduce credit, market and liquidity risks. According to a study by the Boston Consulting Group the shift from three days to two days will save $200 million through the reduction in buy-side risks in the U.S. alone.

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