On September 28, 2016, the SEC issued a proposed rule that would amend Rule 15c6-1(a) of the Exchange Act to shorten the settlement cycle for most broker-dealer securities transactions to two business days, or T+2. Currently, the standard settlement cycle for these transactions is three days, known as T+3. The proposed shortening of the settlement cycle is intended to reduce certain risks, including credit risk, market risk, and liquidity risk, and, as a result, reduce systemic risk for US market participants.

The proposal would prohibit a broker-dealer from effecting or entering into a contract for the purchase or sale of a security (other than exempted securities, government securities, municipal securities, commercial paper, bankers' acceptances, or commercial bills) that provides for payment of funds and delivery of securities later than the second business day after the date of the contract, unless otherwise expressly agreed to by the parties at the time of the transaction.

The SEC is accepting comments on the proposal until December 5, 2016.