In 1995, through automation and technological improvements, the U.S. equity settlement cycle was reduced from T+5 to T+3.
The industry again considered shortening the cycle just over a decade ago. In 2000, the Securities Industry Association (SIA) – today’s Securities Industry and Financial Markets Association – published a cost-benefit study for accelerating equity settlement to T+1. But following 9/11, the industry’s priorities shifted and the focus for settlement became achieving straight-through processing.
Despite the decision to postpone the move to T+1 in the U.S., DTCC continued to improve its processes to achieve greater straight-through processing. DTCC and the industry-at-large improved systems and implemented capabilities, including real-time processing for trade capture, same-day settlement and enhanced CNS processes.