A few days after the settlement cycle for U.S. securities returned to T+1—meaning “trading day plus one business day”—SEC Chair Gary Gensler called the conversion “historic,” saying the transition had gone “smoothly so far.” The move, he added, “will benefit investors and take risk out of the system.”
Switching from T+2 is “win-win” for hedge funds and broker-dealers, Lawrence White, a professor of Economics at the NYU Stern School of Business, told Fortune. But for retail investors outside the Wall Street elite, the change amounts to “small potatoes.”
