What to expect as U.S. moves towards faster stock settlement

News Snapshot:

U.S. markets are set for an upheaval on Tuesday, May 28, when the settlement time for U.S. equities, corporate municipal bonds and other securities will be halved to one day, or T+1, following the adoption of a new Securities and Exchange Commission (SEC) rule in February 2023. Here is what to expect: WHAT IS SETTLEMENT? A trade settlement occurs when the buyer receives the security and the seller is paid. This final stage is handled by the Depository Trust Company (DTC), a subsidiary of the Depository Trust and Clearing Corporation. WHAT DOES SPEEDING UP SETTLEMENT MEAN FOR MARKETS? Regulators hope...