The move to T+1, the shortening of the securities transaction settlement cycle from two business days after the trade date to one, was successful, according to a new report released by the Securities Industry and Financial Markets Association, the Investment Company Institute and The Depository Trust & Clearing Corp.
"After more than three years of rigorous and coordinated activities to plan for — and ultimately implement — a shortened settlement cycle, the industry is recognizing reduced settlement risk across the U.S. capital markets," the T+1 After Action Report states. "Firms are now able to make better use of their capital while promoting financial stability. Ultimately, T+1 has provided the appropriate balance between increasing efficiencies and successfully mitigating risk for the industry."
The move to T+1 started in late May.
SIFMA, ICI and DTC warn, however, that moving to T+0 (or same-day settlement) is not simply the next step in the process.
