Today, the SEC announced May 28, 2024, as the implementation date for the move to T+1 settlement for transactions in US cash equities, corporate debt and unit investment trusts.
With this regulatory clarity, DTCC continues to be ready to bring this initiative forward. Accelerating the settlement cycle to T+1 will bring many benefits, including reduced risk,lowered clearing fund requirements, improved capital and liquidity utilization and increased operational efficiency. At the same time, DTCC recognizes that significant challenges remain towards implementation and will continue to partner closely with market participants, as well as regulators, SIFMA and the ICI, to promote a successful transition to T+1 and to safeguard the stability of the markets.
DTCC also appreciates the SEC’s clarification around the role of Central Matching Service Providers (CMSP) in helping the industry to achieve straight through processing. Straight through processing will help the industry to effectuate same day affirmation on a timely basis in support of the move to T+1.
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