A T-0(day) settlement rule would help to ensure fairness and transparency in financial capital markets that would protects small businesses, their employees, families, our collective posterity from market manipulation and by bad actors motivated by corporate greed, profits and power.

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This petition advocates for the finance industry and markets to adopt a T+0(day) settlement rule.

This petition advocates for the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), and the the Depository Trust Company (DTC) and all participants to formally adopt a T+0 rule for the settlement of equities, bonds, and insurance instruments transaction in order to eliminate credit and settlement risk.

Adoption of a T-0(day) rule protects the retail investor from the practice of naked shorting by Market Makers, Broker Dealers, and Hedge Funds.

Adoption of a T-0(day) rule protects the bank sector from the risk and exposure  from the practice of naked shorting beyond the capacity of the settlement process.

Adoption of a T-0(day) rule would protect the Bond market from illicit practices in the equity market.

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What is T-0(day)?

T+0 settlement, also known as real-time settlement, refers to the immediate transfer of securities and funds after a trade is executed. In traditional equity markets, the standard settlement period is T+2, meaning that the trade is settled two days after it is executed. However, with the advancements in technology, there is a growing demand for a T+0 settlement system. In this essay, I will advocate for T+0 settlement for equities by discussing its benefits for both investors and the market as a whole.

What about defaults?

First and foremost, T+0 settlement reduces the risk of counterparty default. In a T+2 settlement system, there is a two-day gap between the execution of a trade and its settlement. During this period, the counterparty could default, which would result in a loss for the investor. In a T+0 settlement system, the transfer of securities and funds is immediate, reducing the risk of default and ensuring that the investor receives their securities and funds as soon as possible.

What about speed and efficiency?

Additionally, T+0 settlement enables faster and more efficient trading. With real-time settlement, investors can trade equities and receive their funds immediately. This reduces the time required to complete a trade and allows for more efficient and flexible trading. Investors can make quicker and more informed decisions, leading to a more dynamic and responsive market.

What about liquidity?

Another benefit of T+0 settlement is that it enhances market liquidity. In a T+2 settlement system, the two-day gap between the execution of a trade and its settlement ties up capital, reducing the amount of money available for trading. In a T+0 settlement system, this capital is immediately available, which increases market liquidity and promotes more efficient and cost-effective trading.

What about market risk?

Finally, T+0 settlement helps to reduce market risk. With real-time settlement, the risk of a failed trade is reduced, as the transfer of securities and funds is immediate. This reduces the risk of market-wide disruptions, which could have serious consequences for the market as a whole.

In conclusion, T+0 settlement offers numerous benefits for equities markets, including reduced counterparty default risk, faster and more efficient trading, enhanced market liquidity, and reduced market risk. These benefits make T+0 settlement a valuable and necessary step forward in the evolution of equity markets.

Please sign this petition for the preservation, protection, and advocacy of global markets that serve the people for the people. God Bless.