The Transition to T+1 in the US Pays Off

The move to T+1 settlement in the U.S. on May 28, 2024 marked a major milestone and a significant step forward in modernizing post-trade infrastructure, reducing risk, and enhancing operational efficiency as the global capital markets evolve to meet the demands of a faster, more interconnected global marketplace.

US T+1

  • Billion

    Reduction in clearing fund requirements following U.S. T+1 compared to previous quarter average

  • Increase in same-day affirmation rate in preparation for U.S. T+1

Data as of May 2024

contact-us-tokenization.png

  • How we supported the U.S. transition to T+1

    DTCC played a pivotal leadership role in the transition to T+1 in U.S. markets. We collaborated with the Securities Industry and Financial Markets Association (SIFMA) and the Investment Company Institute (ICI), to jointly publish the “T+1 Industry Playbook” which served as a comprehensive guide for market participants preparing for the transition. 
     
    DTCC’s trade processing solutions were instrumental in enabling firms trading in the U.S. to meet the accelerated timelines by automating trade matching, enriching settlement instructions, and reducing manual intervention. Our leadership ensured that nearly 95% of trades were affirmed by the 9:00 PM ET cutoff on trade date, a significant improvement from pre-T+1 levels. 

  • What lessons from the U.S. move to T+1 can be applied to other markets?

    The success of the move to T+1 in the U.S. underscores the power of industry-wide collaboration and its ability execute complex changes at scale. The transition followed three years of coordinated planning, testing, and implementation by a wide range of stakeholders, including financial firms, market infrastructure providers, and industry associations, both within the U.S. and internationally. 
     
    Looking ahead to T+1 in Europe and APAC markets, this collaborative approach underpinned the T+1 success and should serve as a blueprint. DTCC is leveraging its expertise to support the upcoming T+1 transitions in the UK and EU, offering trade processing solutions and consulting services to help firms prepare for the 2027 implementation deadline.

Supporting Clients Through Change

How DTCC Consulting enabled a U.S. broker’s successful T+1 transition with expert assessment and a clear, actionable roadmap 

As the U.S. moved to a T+1 settlement cycle, DTCC Consulting partnered with a leading broker to deliver a tailored readiness assessment and roadmap. 
 
This proactive approach enabled the client to streamline operations, meet evolving SEC compliance requirements, and successfully transition to T+1 settlement – setting a benchmark for regulatory preparedness in a rapidly changing market environment. 
 

“The foundations for our T+1 success were in no small part underpinned by the work DTCC Consulting did. We followed that plan and it delivered.”  

Featured Insights