New York Stock Exchange returns to “T+1” settlement system

Today, the New York Stock Exchange 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.

The shift to the new mechanism will reduce a lot of time to complete deals and also 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, according to Al Arabiya.

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.