Sterling Trading Tech (STT), a global provider of technology in order management, risk and margin, and trading, is working with brokerages, clearing firms and market participants to ensure their compliance with the SEC’s new T+1 settlement cycle rule on trades from the current T+2 cycle.

The SEC's rule is effective from 28 May 2024.

On 15 February 2023, the SEC stated that the rule is "designed to benefit investors and reduce the credit, market, and liquidity risks in securities transactions faced by market participants".

The rule will also affect institutional firms; straight through processing for clearing agencies that provide central matching services; and RIAs. As with all regulatory requirements impacting operations, affected firms must be in full compliance on the effective date.

STT shares the SEC’s view that risk reduction, lower latency and increased efficiency can only benefit investors and markets.

In a press statement, David Weiss, CTO at STT, said: “Our team has conducted a thorough analysis and assessed all potential impacts for T+1. We are ready and fully equipped to ally with our clients on implementation. STT has taken proactive measures to implement the requirements for reporting, and we encourage all firms to communicate with their clearing firms to ensure compliance on their end. Working with our team at STT will assure seamless navigation and implementation.”