USA: Industry announces proposed timeline for T+2 settlement cycle
Reference
The T+2 Industry Steering Committee (ISC) has released a whitepaper outlining the timeline and activities required to move to a two-day settlement cycle (T+2) in the U.S.
This whitepaper, “Shortening the Settlement Cycle: The Move to T+2” provides guidelines for the proposed migration to T+2 for equities, corporate and municipal bonds, and unit investment trust trades by Q3 2017.
Currently, U.S. settlement has a three-day settlement cycle (T+3). It is expected that shortening the settlement cycle to T+2 will substantially reduce operational and systemic risk across the industry and for investors as well as lowering liquidity needs among other improvements. It will also align the U.S. settlement cycle with other markets across the globe.
We continue to monitor this initiative as it develops and will provide further information as it becomes available.
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