SEC Chair Gary Gensler Says As U.S. Moves To Shorter Stock Settlement Time In May, Central Banks Worldwide Should Begin Considering Halving Forex Settlement Time As Well
Portfolio Pulse from Benzinga Newsdesk
SEC Chair Gary Gensler has advocated for a shorter stock settlement time in the U.S. starting in May. He also suggested that central banks around the world should consider reducing the forex settlement time by half.
January 25, 2024 | 1:25 pm
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The SPDR S&P 500 ETF Trust (SPY) could see increased trading efficiency and potentially reduced counterparty risk with the proposed shorter stock settlement time.
The SPDR S&P 500 ETF Trust (SPY) represents a broad range of U.S. equities and is directly impacted by changes in stock settlement times. Shorter settlement periods could lead to increased market efficiency and liquidity, which are generally positive for ETFs like SPY. However, the actual impact will depend on the details of the implementation and the market's adaptation to the new settlement schedule.
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