[ M A R K E T R E V I E W | S E T T L E M E N T ]
SHORTENING THE SETTLEMENT CYCLE
2014 EU begins to move to T + 2 on October 6th
US T + 2 effort discovery and analysis phase
2014 Industry associations expressed support for move to T + 2
2012 EU decides to move to T + 2 settlement in 2014
2008 Global financial crisis spurs regulations to reduce systemic and operational risk
Focus on shortening the settlement cycle to T + 2
2012 DTCC commissions cost benefit analysis of move to T + 1 or T + 2
2011 Hong Kong introduces T + 2 Finality on July 25th
2004 SEC concept release on improving operational efficiency of settlement and clearing
Emphasis on enabling STP
Late 90’ s Industry discussions continue on further shortening the settlement cycle
Discussions on shortening the settlement cycle to T + 2 or T + 1
1995 SEC Rule 15c6-1 mandates T + 3 settlement for a variety of asset classes
Source: DTCC, ISC and PWC
1987 Market disruptions drive analysis on shortening the settlement cycle
Focus on improving clearing and settlement for the move to T + 3
Summer 2017 globalcustodian. com 45