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DTCC Connection

Stephen Foley, Financial Times | October 18, 2012


Investors and brokers are being urged to cut the time it takes to settle U S equity trades, a modernising move that could have its biggest impact on sleepy regional stockbrokers and on investors who prefer paper stock certificates.

Two industry - run groups are trying to forge a consensus to reduce settlement times, for fear that the current three-day cycle is an unresolved source of risk to the financial system.

The initiative could run into opposition from broker-dealers who wish to avoid investing in the required technology, particularly given the other changes already demanded of them by the Dodd-Frank Wall Street reform.

Download the Congressional Testimony: Brokers urged to speed up US share trades