25 June 2017
Visit cib.db.com

Sifma calls for US market move to T+2

17 April 2014  |  6958 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.
KeywordsDEPOSITORIES

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

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

Related stories

European Union reaches agreement on settlement reforms

European Union reaches agreement on settlement reforms

19 December 2013  |  4449 views  |  0 comments | 1 tweets | 3 linkedin
UK and Ireland to move to T+2 settlement

UK and Ireland to move to T+2 settlement

02 December 2013  |  7882 views  |  0 comments | 4 tweets | 10 linkedin
Euroclear CSDs to move to T+2 in 2014

Euroclear CSDs to move to T+2 in 2014

24 July 2013  |  4617 views  |  0 comments | 1 tweets
London Stock Exchange to open central securities depository

London Stock Exchange to open central securities depository

16 July 2013  |  5985 views  |  0 comments | 4 tweets
Repo settlement delays expose market fragility

Repo settlement delays expose market fragility

31 January 2013  |  4370 views  |  1 comments
Half of market participants not preparing for T+2 - Omgeo

Half of market participants not preparing for T+2 - Omgeo

31 October 2012  |  8645 views  |  1 comments | 4 tweets | 2 linkedin
Shortening US trade settlement cycle a big money saver - BCG

Shortening US trade settlement cycle a big money saver - BCG

05 October 2012  |  7175 views  |  2 comments
US to explore shortened trade settlement cycle

US to explore shortened trade settlement cycle

23 May 2012  |  8278 views  |  0 comments | 1 tweets
Up to one in ten trades still fail to settle on time

Up to one in ten trades still fail to settle on time

16 May 2012  |  10506 views  |  1 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit vasco.com/news/PSD2-compliant-solutionsdownload the report nowvisit www.www.fisglobal.com

Top topics

Most viewed Most shared
Live: EBAday 2017, day twoLive: EBAday 2017, day two
9936 views comments | 4 tweets | 5 linkedin
Worldpay pilots app-only mPOS for small retailersWorldpay pilots app-only mPOS for small re...
9371 views comments | 20 tweets | 27 linkedin
Live: EBAday 2017, day oneLive: EBAday 2017, day one
9062 views comments | 3 tweets | 4 linkedin
UK banks will need to change one million sort codes under ring-fencing rulesUK banks will need to change one million s...
8439 views comments | 8 tweets | 25 linkedin
What Banks and their customers can expect for the futureWhat Banks and their customers can expect...
7628 views comments | 7 tweets | 10 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job