Dear Investors,

The settlement cycle for transactions at the American depository, Depository Trust & Clearing Corporation (DTCC)*, has changed from T+2 to T+1. The changes took effect on May 28, 2024.

Previously, the settlements for transactions on the NYSE/NASDAQ and other US exchanges took place on the second business day from the date of the transaction. Now, it is on the next business day from the transaction date.

This means that now, to receive dividends on the American stocks, they can be purchased not two business days before the register closing date (record date), but one business day. The changes apply only to purchase of securities on the American exchanges, NYSE, NASDAQ and other US exchanges. The exchanges not affiliated with DTCC maintain the T+2 trading regime.

Given the timing of the markets, you should not notice significant changes. However, in any case, we ask you to take these changes into account, when placing trading orders. More detailed information can be found at the following link: www.dtcc.com/ust1

Overall, the transition to the new regime provides retail customers with several important benefits:

1. Accelerated settlements: reducing the time between making a transaction and the final settlement allows investors to quickly access their funds or assets.

2. Reduction of the counterparty risk: reduction of the calculation period mitigates the risk of counterparty insolvency.

3. Faster response to market changes: quick access to funds allows investors to react faster to changes in market environment.

4. Changes in liquidity management: investors will have to adapt to the new settlement regime given that funds will be available faster.

It's important to note that last week the Securities and Exchange Commission (SEC) warned that transition to the new trading regime could lead to short-term increase in settlement failures and problems for a small segment of market participants.

It should also be taken into account that in the American stock market, after transition to the new regime, a double settlement day is expected on May 29, as well as a rebalancing of the MSCI index, at the end of the week that may affect the dynamics of the stock market.

Overall, transition to T+1 is aimed at improving efficiency and security of financial markets that can be beneficial for all participants, including retail investors.

* DTCC is a financial organization providing clearing and settlement services on financial markets