The Depository Trust & Clearing Corporation (DTCC) issued the following statement in response to the recent SEC announcement around the T+1 implementation date:
“Today, the SEC adopted final requirements for a May 28, 2024, 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.”
With over 45 years of experience, DTCC is the premier post-trade market infrastructure for the global financial services industry. From 21 locations around the world, DTCC, through its subsidiaries, automates, centralizes, and standardizes the processing of financial transactions, mitigating risk, increasing transparency and driving efficiency for thousands of broker/dealers, custodian banks and asset managers. Industry owned and governed, the firm simplifies the complexities of clearing, settlement, asset servicing, data management, data reporting and information services across asset classes, bringing increased security and soundness to financial markets. In 2021, DTCC’s subsidiaries processed securities transactions valued at nearly U.S. $2.4 quadrillion. Its depository provides custody and asset servicing for securities issues from 177 countries and territories valued at U.S. $87.1 trillion. DTCC’s Global Trade Repository service, through locally registered, licensed, or approved trade repositories, processes 16 billion messages annually. To learn more, please visit us at www.dtcc.com or connect with us on LinkedIn, Twitter, YouTube, Facebook, and Instagram