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Friday, July 28, 2017

Equity Trader Alert #2017 - 174
Nasdaq T+2 Shortened Settlement Cycle

Category:

  • Industry Announcement

Markets Impacted:

Contact Information:

Resources:

On March 22, 2017, the Securities and Exchange Commission adopted amendments to Rule 15c6-1(a) to shorten the standard settlement cycle from trade date plus three business days (T+3) to trade date plus two business days (T+2). This change will be effective, along with the impacted rule changes necessary for a T+2 settlement cycle, on Tuesday, September 5, 2017.

Starting on September 5 Regular Way trades will now settle on T+2 instead of T+3. The below will detail the transition from T+3 to T+2.

T+3 Settlement

Regular Way trades that execute on trade date August 31 will settle on September 6 due to the Labor Day holiday on September 4. Regular Way trades that execute on trade date September 1 will settle on September 7 due to the Labor Day holiday on September 4.

T+2 Settlement

Regular way trades executed on trade date September 5 will settle on September 7. Regular way trades executed on trade date September 6 will settle on September 8.

Due to the Labor Day holiday schedule to roll out the Shortened Settlement Cycle, there are two things to note:

1. There will be a double settlement on September 7 for trades executed on September 1 (settling T+3) that will settle the same day as trades executed on September 5 (settling T+2).
2. September 5 will not be a valid Ex-Date for Regular Way.

For any questions or concerns regarding Ex-dividend procedures to accommodate T+2 settlement, please visit the NASDAQ issuer alert by clicking on the link below.

Nasdaq Issuer Alert 2017-001

For any questions regarding the ongoing T+2 testing, please visit:

Equity Trader Alert #2017 - 31

Questions regarding this notice should be directed to Nasdaq’s Clearance & Settlement Operation team:

Equities:

Dawn Sierra: 212 401-8969

John Hasiak: 212 401-8936

Group email: OPS@nasdaq.com

Nasdaq TRF:

Jennifer Desembrana: 212 231-5168

Joseph Picozzi: 215 496-5047

Group email: OPS@nasdaq.com

Escalation:

Vincent DiVito: 212 401-8711

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