In the securities industry, this conversion has been labeled T+3 settlement, which is shorthand for settlement on trade date plus three business days.
The conversion to T+3 settlement should not directly affect new-issue sales by issuers of municipal securities.
The oft-repeated mantra that has brought T+3 settlement to U.
securities markets are moving to T+3 settlement and discusses how the securities industry - and the municipal securities industry in particular - is coping with the change.
While the Securities and Exchange Commission (SEC) has been the primary regulatory force behind T+3 settlement in the United States, the idea originated with the Group of Thirty, an international, nonprofit organization of world financial leaders.
BME is committed to offering Wall Street brokerage firms a 100% T+3 service.
Carlin believes there will be a large market for his company's T+3 service because, "the brokerage business is a highly competitive service business which is dependent on the highest levels of customer service.
Although the Company believes that the expectations reflected in the forward-looking statements and the assumptions upon which they are based are reasonable, it can give no assurance that such expectations and assumptions will prove to have been correct, including assumptions related to the mandatory exchange, Nasdaq's announcements related to the "when-issued" status, the date in which the stock will return to T+3
trading, whether future settling and clearing of trades will occur electronically or solely through physical delivery and any other matters related to trading of the Company's stock.
Today, trades settle at T+3 or three days after the trade.
Wall Street brokerage firms will have to satisfy those needs plus the needs of the regulators in the move from today's T+3 to T+1," McPartland said.
In effect, the trade plus three regulation, or T+3, shortens the trading cycle for security transactions of most types by 40%.
Securities transactions affected by T+3 include stocks, bonds, mutual funds and unit trusts, listed limited partnerships and private label mortgage-backed securities (CMOs).