Move to faster settlements for US securities has gone smoothly, SEC chair says

NEW YORK (Reuters) – The overhaul of the settlement cycle for U.S. securities has gone smoothly this week, with all trades having settled, U.S. Securities and Exchange Commission Chair Gary Gensler said on Friday.

U.S. trading of equities, corporate and municipal bonds and other securities moved on Tuesday to a one-day settlement cycle (T+1) from two days (T+2), to comply with a rule change the SEC adopted in February.

“The historic conversion from T+2 to T+1 has gone smoothly thus far,” Gensler said in an emailed statement on Friday. “We remain in close contact with the clearinghouses and other market participants as we continue to monitor the transition ahead of increases in trading volumes expected this afternoon.”

Market participants have said the transition was going smoothly, despite some bumps.