The US Industry Steering Committee (ISC) has set a target date of 5 September 2017 for a move to a T+2 settlement cycle.
The proposed date comes following discussions between the ISC in accordance with the DTCC as well as the Securities Industry and Financial Markets Association (SIFMA).
In addition, an industry playbook was published in December 2015, providing detailed timelines, milestones and other potential impacts on the market which influenced the selected date.
Alongside this news, the DTCC has also issued a whitepaper entitled “T+2 Test Approach: DTCC’s High-Level Testing Framework” providing further information on how firms should prepare for a shortened settlement cycle.
The move to a shortened settlement cycle is being pursued with the aim of reducing operational, systemic and counterparty risk, lowering liquidity needs and procycilicality
It is also hoped that the move will help align the US with other global T+2 settlement markets.
T+2 target date set for September 2017
The US Industry Steering Committee (ISC) has set a target date of 5 September 2017 for a move to a T+2 settlement cycle.