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

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…