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.