What is changing?
Beginning May 28, 2024, the settlement cycle for most securities transactions will move to trade date plus one day (T+1). The transition to T+1 is expected to benefit investors and other market participants with reduced costs, increased market efficiency, and reduced settlement risk in security transactions.
For more information, please see the SEC Reducing Risk in Clearance and Settlement
Key dates
Friday, May 24, 2024, is the Last Trade Date for T+2 settlement Tuesday, May 28, 2024, will be First Trade Date for T+1 settlement Wednesday, May 29, 2024, will be a double settlement date
What products are impacted?
The settlement shortening will impact essentially all products traded by FHN Financial that do not already have a T+1 settlement date, including secondary municipal, agency, mortgage, and corporate securities. New Issue Agency and Municipal Securities will settle as dictated by the underwriter.
For a full list of impacted products, please refer to the DTCC’s T-1-Product-List.pdf (dtcc.com)
How is FHN Financial preparing?
FHN Financial has taken every effort to prepare our operations settlement systems and personnel and educate sales and trading to facilitate a smooth transition to the shortened settlement cycle. This includes making staff available for the later affirmation and allocation times, streamlining the account set-up program, and allotting firm resources to the settlement process.
Resources for customers
Delivery Instructions - FHN Financial Capital Markets
Delivery Instructions - FHN Financial Securities Corp
SEC.gov | SEC Finalizes Rules to Reduce Risks in Clearance and Settlement
Shortening the Settlement Cycle | DTCC
DTCC FAQs | DTCC
