T+1 Settlement Trading Era Begins: What You Need To Know
Portfolio Pulse from Piero Cingari
The U.S. financial markets will transition from a T+2 to a T+1 settlement cycle on May 28, 2024. This change aims to reduce counterparty risk and improve liquidity but will require significant operational and technological adjustments. The shift was partly motivated by issues highlighted during the 2021 meme stock frenzy involving GameStop (NYSE:GME).
May 28, 2024 | 1:45 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
The transition to a T+1 settlement cycle addresses issues highlighted during the 2021 GameStop frenzy, potentially reducing counterparty risk and improving liquidity for GME.
The T+1 settlement cycle aims to mitigate risks that were evident during the 2021 GameStop trading frenzy, such as high clearinghouse deposit requirements and restricted trading. This could lead to a more stable trading environment for GME.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80