New York Stock Exchange Returns to “T+1” Settlement System after Century

The New York Stock Exchange (NYSE) begins implementing the mechanism for settling stock trades after a day of trading, or what is called “T+1,” instead of the previous system after two days of trading, thus returning to the settlement mechanism in place 100 years ago.

Switching to the new mechanism will reduce a lot of time to complete deals and aims to reduce risks in the financial system, but it will create a challenge for foreign investors in providing the necessary liquidity and less time to fix errors.

The markets of Canada and Mexico also switched to the “T+1” settlement system yesterday in order to push trades and complete them in faster periods than before.

The New York Stock Exchange recently conducted an opinion poll to find out the opinions of traders regarding options for opening US stock trading throughout the week without interruption.

The opinion poll reflects the increasing demand by individual investors, especially outside the United States, specifically in Asia, for U.S. stocks.