SEC Speeds Up Trade Settlements with Rule Extension Request
Published Date: 4/20/2026
Notice
Summary
The SEC is asking for feedback on extending a rule that helps companies who match securities trades speed up their work. This rule affects firms that connect brokers, investors, and custodians to make sure trades settle faster—cutting the wait from two days to just one. No big cost changes are expected, but these companies need to keep their systems sharp and efficient to keep up with the faster schedule.
Analyzed Economic Effects
5 provisions identified: 1 benefits, 4 costs, 0 mixed.
CMSPs Must Maintain STP Policies
If you run a central matching service provider (CMSP) that is exempt from clearing agency registration, you must establish, implement, maintain, and enforce written policies and procedures reasonably designed to facilitate straight-through processing (STP) for transactions involving broker-dealers and their customers.
Annual Report with Specific Metrics
CMSPs must submit an annual report every twelve months to the SEC that includes: (1) a summary of STP policies and procedures current as of the last day of the period; (2) a qualitative description of progress during that period; (3) quantitative data including total trades, allocations, confirmations (and confirmations cancelled), percent of confirmations affirmed on trade date with timeframe, percent of allocations/confirmations matched and automatically confirmed, and metrics on manual vs automated user processes; and (4) a qualitative description of intended actions for the following twelve-month period.
Estimated Annual Compliance Burden: 37 Hours
The Commission estimates the ongoing annual burden on a respondent CMSP is 37 hours per year (34 hours for compliance and operations plus 3 hours for Inline XBRL tagging). The SEC states the aggregate annual burden is 37 hours total for the industry.
Supports Shortened Settlement Cycle to T+1
Rule 17Ad-27 is part of the final set of rules to shorten the standard settlement cycle for securities transactions from two business days after the trade date (T+2) to one business day after the trade date (T+1). The rule focuses on facilitating straight-through processing to support that faster schedule.
Required Data Formatting and Separation
Data submitted under Rule 17Ad-27 must be organized month-by-month beginning with January for the twelve months covered, separated between central matching and electronic trade confirmation where applicable, separated by asset class and by type of user, and presented on an anonymized and aggregated basis.
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Key Dates
Department and Agencies
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