The now-global push to shorten settlement cycles for securities transactions will profoundly challenge the buy side’s lack of investment over the years in automated, back-office infrastructures, particularly at Tier-2 and Tier-3 firms, according to a new report from market research firm Aite Group. In fact, for all firms, the move to settlement two days after… Read More >>
T+2 Too Soon for Some?
Post-trade services utility the DTCC, securities industry trade group SIFMA and major market participants want to shorten the current three-day settlement cycle, but there is pushback from some broker-dealers, particularly in the retail space. The move from settling trades on the third day after a trade is executed, known as T+3, to two days or… Read More >>
T+2 Switch May Need Regulatory Help
Post-trade services utility DTCC has stepped up its efforts to move the industry to a shorter, T+2 settlement cycle for U.S. equities, corporate and municipal bonds and unit investment trust (UIT) trades. Neil Henderson, the DTCC’s managing director of clearing, is helping lead the charge and took a few minutes to answer FTF News’ questions…. Read More >>
DTCC Steps Up Push for T+2
The DTCC is building support to move the industry to a shorter, T+2 settlement cycle for U.S. equities, corporate and municipal bonds and unit investment trust (UIT) trades in a bid to reduce credit and liquidity risks, say officials at the post-trade processing utility. In addition, JPMorgan and industry groups such as the Investment Company… Read More >>
Despite SIFMA, T+2 in the U.S. Faces Obstacles
Citing systemic risk mitigation, securities industry trade group SIFMA is throwing its support behind a move to shorten the settlement cycle for U.S equities, corporate bonds and municipal bonds. But there will be stones in the road to tighter settlement times. Currently, the U.S. settles transactions from trade date plus three days (T+3); SIFMA and… Read More >>
