February 7, 2024
NYSE Annual Compliance Reminders: T+1 Settlement
The NYSE has sent its annual Listed Company Compliance Guidance letter with recent developments and timely reminders. This Mayer Brown blog discusses the three new matters in the letter. Here’s what it includes on T+1 settlement (similar to Nasdaq’s recent issuer alert):
The transition to a T+1 settlement cycle pursuant to SEC Rule 15c6-1(a) will occur on May 28, 2024. The NYSE will adopt new rules to reflect regular way settlement as occurring on a T+1 basis and also will change the Exchange’s rules with respect to ex-dividend and ex-rights trading. Ex-dividend trading dates will be set during the transition period as follows:
– securities paying a dividend with a record date of May 28 will be traded ex-dividend on May 24; and
– securities paying a dividend with a record date of May 29 will be traded ex-dividend on May 29.The Memo reminds listed issuers, to the extent practicable, to avoid consummation of corporate actions during the time of transition from T+2 to T+1.
– Meredith Ervine