SEC Urges Securities Industry to Prepare for Transaction Settlement Reform

Washington, DC, February 21, 2001 – Former SEC Chairman Arthur Levitt sent a letter on T+1 settlement to securities industry participants. The letter, which Levitt sent prior to stepping down from his position in February, notes that the SEC is now working with the securities industry to move to T+1 settlement, which is expected to take place in June 2004. The letter indicates that the shortened settlement cycle will affect all facets of the securities industry, including broker-dealers, banks, transfer agents, custodians, and investment managers. Finally, the letter urges industry participants to focus on changes necessary to prepare for T+1 settlement and to dedicate appropriate resources.