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The SEC T+1 Settlement Cycle refers to the securities industry’s move from a T+2 (Trade date plus two days) to a T+1 Settlement Cycle for most securities transactions. This change mandates that trades executed on a particular day must be settled by the close of business on the next trading day, reducing the settlement period by one day. The shift aims to enhance market efficiency, reduce counterparty risk, and align the U.S. market more closely with global standards, where shorter settlement cycles are more common. This accelerated cycle requires tighter coordination among market participants, including broker-dealers, custodians, and clearinghouses, to ensure timely completion of transactions and proper allocation of resources.