In connection with the industry-led initiative to shorten the settlement cycle for transactions in U.S. equities and other securities from trade date plus three business days (T+3) to trade date plus two business days (T+2), the Nasdaq Stock Market LLC (“Nasdaq”) has preliminarily identified certain rules that establish or reference a T+3 settlement cycle, including rules that establish the ex-dividend date for distributions by Nasdaq-listed companies.

In order to implement a T+2 settlement cycle, Nasdaq would modifyRule 11140(b)(1) to provide that the “ex-dividend date” will generally be the first business day before the record date. The ex-dividend date is the date on which a security is traded without the right to receive a dividend or distribution that has been declared by a listed issuer.

The following Nasdaq rules would also be impacted by this amendment:

• Rule 2830 (Investment Company Securities, incorporated by reference from NASD Rule 2830)

• Rule 11150(a) (Transactions “ex-interest” in bonds which are dealt in “flat”)

• Rules 11210(c) and (d) (Confirmations)

• Rule 11320(b) and 11320(c) (Dates of delivery)

• Rule 11620 (Computation of interest)

Nasdaq anticipates filing rule amendments to accommodate the new T+2 settlement cycle later in 2016, and fully implementing T+2 settlement in the third quarter of 2017. Interested parties can submit comments prior to September 30, 2016.

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