New SEC Risk Alert Warns of T+1 Transition

Shortening the standard settlement cycle will affect market participants, such as broker-dealers, clearing agencies, including those that are central matching services providers, and RIAs, by requiring changes to their business practices, computer systems, and technology solutions, the alert explains.

T+1 could also affect how registrants and other market participants comply with other existing regulatory obligations.

The agency’s Division of Examinations said it will continue to review whether and how registrants have evaluated the potential impact of the final rules on their:

• business activities;
• operations and risk assessments;
• services; and
• customers, clients, and/or other relevant parties.