U.S. – SIFMA Move to T+1 Settlement Cycle

U.S. – SIFMA Move to T+1 Settlement Cycle

On 17 August 2021, SIFMA, ICI & DTCC wrote to SEC on progress around the t+1 effort.

  • Nearing end of analysis of work needed to get to T+1, continue industry collaboration.
  • These changes include global settlements, documentation impacts, corporate actions, securities issuance, and impacts on coordination for mutual fund portfolio securities.
  • Significant changes for prime brokerage, delivery of investor documentation, FX, global movement of securities and currency, batch cycle timing, ETF creation/redemption.
  • Imperative to identify the reasons behind settlement errors and fails and ensure that the error and fail rates would not increase under a newly compressed T+1 timeline.
  • Discovered that issues involved in shortening settlement cycle will need fundamental behavioral, technological and regulatory changes, industry coordination, socialization.
  • By end Sep. 2021, expect to finish analysis phase and next phase on developing plan/
  • Transition will include industry transition communication plan, transition time frame, appropriate planning and testing; require behavioral changes, technological changes.