08 December 2016
Visit aciworldwide.com

Sifma calls for US market move to T+2

17 April 2014  |  6711 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  |  4315 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  |  7660 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  |  4444 views  |  0 comments | 1 tweets
London Stock Exchange to open central securities depository

London Stock Exchange to open central securities depository

16 July 2013  |  5782 views  |  0 comments | 4 tweets
Repo settlement delays expose market fragility

Repo settlement delays expose market fragility

31 January 2013  |  4182 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  |  8448 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  |  6987 views  |  2 comments
US to explore shortened trade settlement cycle

US to explore shortened trade settlement cycle

23 May 2012  |  8088 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  |  10201 views  |  1 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Find out moreVisit capgemini.comhttp://www.financialcrimerisk.fiserv.com/aml?r=finextra

Who is commenting?

A Finextra member Finextra Member Commented on: Payments regulator blo...
A Finextra member Finextra Member Commented on: Payments regulator blo...

Top topics

Most viewed Most shared
Guesswork alone can crack Visa card security - Newcastle UniversityGuesswork alone can crack Visa card securi...
7524 views 12 comments | 15 tweets | 27 linkedin
OCC to offer fintech firms bank charter statusOCC to offer fintech firms bank charter st...
7113 views comments | 25 tweets | 15 linkedin
China tops world fintech rankingsChina tops world fintech rankings
6909 views comments | 34 tweets | 30 linkedin
Fed Governor sounds warning on alternative credit scoring dataFed Governor sounds warning on alternative...
6283 views comments | 19 tweets | 20 linkedin
Big tech policy group calls on Trump to promote fintech innovationBig tech policy group calls on Trump to pr...
5741 views comments | 22 tweets | 11 linkedin

Featured job

to Six-Figure Base, Commission, Benefits
London, UK

Find your next job