Yesterday two U.S. SEC commissioners Hester Peirce and Elad Roisman published a statement expressing some disappointment in the SEC’s work agenda. The new Chair of the Securities and Exchange Commission (SEC) Gary Gensler was widely expected to make it a priority to clarify the legal position of digital assets, but the topic was not included on the published agenda for this Spring, although that doesn’t stop it being addressed later. Notably, there are moves afoot for greater inter-agency coordination on the topic.
However, the agenda does include a proposal regarding shortening securities settlement cycles. It states, ‘The Division is considering recommending that the Commission propose rules to amend Exchange Act Rule 15c6-1(a) to shorten the standard settlement cycle.’ That rule states that transactions should not settle later than two days (T+2).
There’s nothing stopping settlement times from being shorter right now, but there’s a tendency to use the maximum time allowed.
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