SEC Approves Shift to Faster Stock Trade Settlements

U.S. Securities and Exchange Commission (SEC) authorizes a move away from the traditional three-day settlement period for stock trades, aiming to accelerate transaction completion.

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Terms & Concepts
  • SEC (U.S. securities regulator): The federal agency responsible for enforcing laws against market manipulation and ensuring fair operation of securities markets.
  • Trade Settlement: The process of transferring securities and payment between buyer and seller to complete a trade.
  • T+3 Settlement: A stock trade settlement standard where transactions are finalized three business days after the trade date.