As the industry prepares for a shortened settlement cycle of T+1 in 2024, DTCC recognizes the many operational touchpoints and process impacts beyond the core equities clearance and settlement systems, and we are working hard to help clients and the industry be ready.
Related: The T+1 Implementation Countdown
To facilitate the move to T+1, DTCC will systematically update the Mutual Funds Fund/SERV system for domestic securities with a settlement cycle of T+2 to T+1, effective May 28, 2024. Additionally, to maximize the window for trade confirmations and correction processing in a T+1 environment, NSCC will systematically update ALL T+1 securities (including offshore Security Types 59, 62, and 63) with a USN Currency Code to a USD Currency Code.
For those who wish to be excluded from this update for an existing security they can do so by filling out the T1 Mutual Fund Security Exclusion Form under the Resources section and emailing the completed form to the NSCC WMS T1 mailbox by May, 10, 2024.
Also notable in the Mutual Fund landscape under T+1:
- Firms will continue to have the ability to override the settlement date on individual Fund/SERV orders by populating the ‘Anticipated Settlement Date’ field.
- Only domestic securities with a T+2 settlement cycle will be modified to a T+1 settlement cycle.
- Domestic securities with a settlement cycle greater than T+2 will not be modified.
- After NSCC performs the systematic updates to T+1, Funds will continue to have the ability to
change a security’s settlement cycle through the existing process of submitting a Fund/SERV Security Issue ID Modify Form.
To learn more about the changes within Mutual Funds for T+1, see our recent important notice. For additional information on the industry move to T+1, please visit UST1.org.