The changes scheduled to be implemented in May 2012 will:
- Advance the cutoff time for submitting new valued MMI issuances to The Depository Trust Company (DTC) to 2:00 p.m. from the current 3:20 p.m.
- Advance the cutoff time for receivers of new valued issuances to approve MMI issuance deliveries to 2:45 p.m. from the current 3:30 p.m.
- Require that all MMI transactions, regardless of transaction value, go through the Receiver Authorized Delivery process.
Next up on the MMI agenda is further evaluation of the possible long-term structural changes discussed in the task force’s report. Some proposals under consideration include:
- Creating an MMI matching process that would match an issuer’s new issuance credits to offset its own maturity obligations.
- Separating MMI and non-MMI transactions for settlement purposes.
- Creating multiple MMI settlement processing cycles to further intraday finality.