01 September 2015

Sifma calls for US market move to T+2

17 April 2014  |  5900 views  |  0 NYSE 1

Sifma is calling for the US capital markets industry to move to a T+2 settlement lifecylce, as other markets worldwide bid to bridge the gap between trade execution and delivery of financial contracts.

The Depository Trust and Clearing Corporation is leading the cheerleading to shorten settlements for equities, corporate and municipal bonds, and unit investment trusts to no longer than T+2, following the publication of a study in 2012 outlining the costs and benefits of such a move. European markets are moving to T+2 for these securities, and much of Asia is already on a T+2 settlement cycle.

Sifma's support for the initiative follows a rallying cry from the Investment Company Institute in February which said that a move to T+2 would be a positive step toward sounder markets and would align the US with initiatives in global markets.

Kenneth Bentsen, Jr., Sifma president and CEO, says: "Sifma looks forward to working with all market participants to ensure a smooth implementation that is carefully executed so as not to unintentionally disrupt operations or negatively impact investors."

He acknowledges that shortening the settlement cycle is a fundamental change to existing market practices that must be implemented with great care to avoid any operational disruptions.

Sifma recommends that the industry, DTCC and regulators continue to work together to accomplish key "building blocks" that together over time will ensure a smooth transition to T+2. The building blocks include compression of timeframes for clearing and settling, specific regulatory rule changes, changes to the trade affirmation process, and other systems and process changes.

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

19 December, 2013
02 December, 2013
24 July, 2013
16 July, 2013
31 January, 2013
31 October, 2012
05 October, 2012
23 May, 2012
16 May, 2012

Related company news


Who is commenting?

Top topics

Most viewed Most shared
SunGard system glitch causes havoc for BNY...
7129 views comments | 14 tweets | 12 linkedin
Third of Brits expect day-to-day mobile pa...
7044 views comments | 36 tweets | 13 linkedin
Kenya's NIC Bank links to Twitter and What...
6253 views comments | 27 tweets | 17 linkedin
Payments UK sets out vision for 'world cla...
6129 views comments | 17 tweets | 10 linkedin
HSBC glitch leaves thousands of customers...
5781 views comments | 13 tweets | 7 linkedin

Featured job

£90-110K Basic Circa £200-250K OTE NO CEILING

Find your next job