Instinct Equities Bank of America e Merrill Lynch Market Structure Update - SEC Adopts T+2 Settlement Highlights • As you are aware, there has been an ongoing industry initiative towards shortening the trade settlement cycle to T+2 for several years. See V.S. T+2 Industry Steering Committee (ISC) website here. • Earlier today, the Commission voted unanimously (2-0) to adopt an amendment to Rule 15c6-1 (Settlement Cycle) that would shorten the settlement cycle to T+2. • The adoption of this rule amendment was widely expected and represented a critical milestone in the ISC Timeline (see below) to implement the T+2 settlement cycle by the end of Q3 2017. • The amended rule applies the T+2 settlement cycle to the same securities transactions currently covered by the 1+3 settlement cycle which includes: stocks, bonds, municipal securities, ETFs, certain mutual funds, and limited partnerships that trade on an exchange. • The compliance date for the amendment to Rule 15c6-1 is September 5. 2017 which is consistent with the target implementation date previously set by the ISC. • Product in scope can be found here Source: https://www.sec.gov/news/press-release/2017-68-0 Chart Source: AMRS Execution Consulting I Brad Johmann 1.646.855.3535 I Brian Liu I 1.646.855.0623 1 EFTA00621315