Bringing you live news and features since 2013
Bringing you news, views and analysis since 2013

35590

SIFMA, ICI and DTCC lead efforts to shorten US Securities settlement cycle to T+1

RELATED TOPICS​

The Securities Industry and Financial Markets Association (SIFMA), the Investment Company Institute (ICI), and The Depository Trust & Clearing Corporation (DTCC) are collaborating on efforts to accelerate the US securities settlement cycle from T+2 to T+1.

Working closely with their members and other key stakeholders, the organisations are outlining key steps to shorten the cycle for secondary market transactions, identifying priority issues that need to be addressed and conducting the necessary due diligence and resolution of these critical issues. The groups began discussing shortening the settlement cycle with their members last year and aim to complete their analysis on the next steps to achieving T+1 by the end of Q3 2021. Shortly after that work, the organisations will develop a definitive timeframe for moving to T+1. In addition to their efforts to shorten the settlement time, SIFMA, ICI and DTCC will assess what it may take to further accelerate the settlement cycle beyond T+1 and explore the role that emerging technologies could play.
 
“Accelerating the settlement cycle, as we and our partners ICI and DTCC know from experience, is a complex and significant undertaking,” says SIFMA President and CEO Kenneth E Bentsen, Jr. “A shorter settlement timeframe can benefit investors and market participants by reducing credit, market and liquidity risks and promoting financial stability. Our plan is to fully address the business and operational impacts of the change first, to ensure a smooth transition and avoid any unnecessary market risk.”  

“ICI and its members will play an active role in designing the roadmap for shortening the settlement time,” says ICI President and CEO Eric J Pan. “Regulated funds occupy a prominent place at the intersection of trading and settlement as they are the primary source for the daily trading transactions that brokers process. ICI, SIFMA and DTCC led the move to T+2 settlement in 2017, and we look forward to reviving that successful partnership.”

Latest News

MainStreet Partners has released its latest quarterly GSS Bonds report “Summer Edition”. This edition of..
Pension and insurance firms have backed a public-private blended finance model to help navigate investment..
MSCI has announced the launch of MSCI Private Capital Indexes, writing that with growing investor..

Related Articles

Rod Ringrow, Invesco
Geopolitical tension has surpassed inflation as the primary concern of sovereign investors and is prompting greater interest in allocating to emerging markets, according to the twelfth annual Invesco Global Sovereign Asset Management Study...
Geopolitical tension has surpassed inflation as the primary concern of sovereign investors and is prompting greater interest in allocating to..
Green energy
2024 has been the strongest ever year for green bond sales, with deals topping USD356 billion in the first six months, according to research from Bloomberg...
2024 has been the strongest ever year for green bond sales, with deals topping USD356 billion in the first six..
infrastructure headline
The new Labour government has launched a GBP7.3 billion National Wealth Fund which will target private capital to support the UK’s growth ambitions...
The new Labour government has launched a GBP7.3 billion National Wealth Fund which will target private capital to support the..
Tom McPhail, lang cat
Today’s news of a landslide victory from the UK’s Labour party, finds that the markets had mostly factored in a widely predicted Labour win...
Today’s news of a landslide victory from the UK’s Labour party, finds that the markets had mostly factored in a..
Subscribe to the Institutional Asset Manager newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by