Skip to main content

Reflecting a unified industry commitment to mitigate operational and systemic risk in the capital markets, The Depository Trust& Clearing Corporation (DTCC), in collaboration with the financial services industry, formed an industry steering committee (ISC) and an industry working group (IWG) to facilitate the move to a shortened settlement cycle in the U.S.

“DTCC is pleased to join with our industry partners to drive implementation of T+2 in the U.S., which will help deliver greater certainty, safety and soundness in the capital markets,” said Murray Pozmanter, DTCC Managing Director and General Manager, Clearing Services. “Taking a collaborative approach is critical to developing a plan for implementing a T+2 cycle that will be supported industry wide.”

The IWG will identify and execute a tactical plan to implement the business and rule changes required to achieve T+2 in the U.S. in a timeframe that is acceptable for the industry. In tandem, the ISC will drive the deliverables of the IWG, provide guidance and support to address technological and process building blocks and communicate changes to the industry. One of its first efforts was the creation of a website,, which provides important industry information related to accelerating settlement for trades in equities, corporate and municipal bonds, and unit investment trusts (UITs) securities.

The ISC will be co-chaired by Kathleen Joaquin, Chief Industry Operations Officer, Investment Company Institute (ICI), and Tom Price, Managing Director, Operations, Technology & Business Continuity Planning, Securities Industry & Financial Markets Association (SIFMA).

“The voluntary move to a T+2 settlement cycle for securities currently settling at T+3 will result in a meaningful reduction in liquidity and operational risks, will promote better use of capital, and will create significant process efficiencies for market participants—all changes that will benefit investors,” said Joaquin.

In the first half of 2014, expressions of support for a move to T+2, in a timeframe acceptable to the industry, were received from various industry groups, including the ICI, the Association of Global Custodians (AGC), the Association of Institutional INVESTORS (AII) and SIFMA.

Further reading: