To aid firms in preparing for transition, updated Regulatory Extension (REX) system to enable firms to file extension of time requests under the shortened settlement cycle.
Settlement Extension Requests
Amended Rule 15c6-1 shorted standard settlement cycle for most B/D transactions
From 2 business days after trade date (T+2) to 1 business day after trade date (T+1).
Firms are required to transition to the new T+1 settlement cycle by May 28, 2024.
To aid firms in preparing for transition, updated Regulatory Extension (REX) system to enable firms to file extension of time requests under the shortened settlement cycle.
Provided guidance on how to apply for Reg T (12 CFR 220) extensions using REX.
Firms applying for extensions with trade dates prior to May 28, 2024, compliance date for new cycle must continue to apply for extensions based on a T+4 payment period.
Beginning May 31, 2024, firms must file Reg T extension requests under a T+1 cycle.
REX system extension validations for Reg T updated to accommodate the new cycle.
Provided REX T+1 testing events; testing available from Sep. 25, 2023, - Apr. 5, 2024.
Also provided a 2024 margin extension schedule after transaction to T+1 settlement.
