With the shift from a T + 2 to T + 1 settlement cycle on most broker-dealer transactions occurring this week, a number of brokerages have been alerting their clients of the impending change. As part of CI’s weekly review of brokerage websites, we have seen firms employ a variety of notification strategies to alert customers to the new T+1 settlement cycle.

Several firms including Citi and UBS Wealth Management, provide simple alerts on the secure site homepage. Citi’s alert concisely informs clients of the impending change, while UBS’s alert goes into more detail, providing clients with some explanation about the impact of the change. Notably, UBS also encourages clients to reach out to their financial advisors if they have further questions.

blank
Citi Secure Site Homepage Notification
blank
UBS Wealth Management Secure Site Homepage Notification

Other firms, such as E*TRADE and Morgan Stanley, feature concise alerts with links to a Shortening the Settlement Cycle article published by the Depository Trust Clearing Corporation. Notably, Morgan Stanley places its notification on the trading interface.

blank
E*TRADE Secure Site Homepage Notification
blank
Morgan Stanley Secure Site Trade Ticket Notification

Finally, JPMorgan Chase features a concise alert with a link to an Important Information Regarding the Shortened Settlement Cycle from T + 2 to T + 1 public site article that it published. The article provides bulleted information about when the rule goes into effect, the type of transactions it will cover and the intended purpose of the rule change.

blank
JPMorgan Chase Secure Site Homepage Notification

How does this compare to 2017, the last time the settlement cycle changed? Corporate Insight subscribers get access to our archive of past reports and collateral materials. Here are a few examples of firm communications from the last time the settlement cycle shortened, in 2017. (CI does not have any notifications from the 1920s, the last time the market operated on a T+1 settlement cycle):

blank
LPL’s 2017 Insert on the T+2 Settlement Cycle
blank
Schwab Intelligent Portfolios Insert – 2017 T+2 Chart

Explore our Insights page for more research on trends in brokerage and other industries. And to learn more about how CI’s subscription services can help your organization enhance its digital experience, check out our Online Brokerage Research Services page.