Nasdaq OMX is set to migrate to a shortened settlement period of T+2, where the settlement of securities transactions typically takes place two days after trades are executed, for securities traded on the Nasdaq OMX Copenhagen, Helsinki, Iceland, Stockholm, Tallinn, Riga and Vilnius exchanges, as required by European regulations.
Under the Central Securities Depository Regulation (CSDR), the settlement cycle for trades in securities, which currently allows for trades to be settled on the third day following their execution, will shorten to two days, from October 6.
“Shortening the time period between trade executions and settling payments by one day will allow efficiency benefits for market participants through the reduced systemic risk enabled by limiting exposure,” says Lauri Rosendahl, head of European cash equities and equity derivatives at Nasdaq OMX.
James talks about his trip to Chicago and some of the interesting topics that came up (including a look at disaster recovery demands). Then Anthony and James touch on ISDA's initial margin rules, with Phase 3 going live next year.Subscribe to Weekly Wrap emails