February 18, 2022
The transition to T+1 settlement cycle will be beneficial for the market as it will allow for timely processing of trades. T+2 gives some villainous market participants more time to avoid and take advantage of completing (delaying) trade executions. By shortening the settlement time, these participants would have less of an opportunity to sway the system to their benefit. Recall that the Gamestop SEC report and legislative hearings stated that one of the main reasons that so many brokers got into trouble and took advantage of the retail traders was because of the T+2 settlement cycle. A T+1 settlement cycle is a necessary change to limit bad behavior from bad actors in the current market structure.