US SEC adopts T+2 settlement cycle for securities transactions

Issuers of structured notes in the US will have to consider the effect of migrating to a two-day settlement cycle (T+2) from the three-day settlement cycle (T+3) for US equities, corporate and municipal bonds, and unit investment trust (UIT) trades, following the adoption by the US Securities and Exchange Commission (SEC) of an amendment to shorten by one business day the standard settlement cycle for most broker-dealer securities transactions. The amended rule is designed to enhance efficiency