US Market Mulls Next-Day Settlement Options
Elements of the market consider capitalizing on the momentum gained after its recent T+2 move.
The US shortened its settlement cycle from three days after execution, or T+3, to T+2 on September 5. That process, overseen by the Depository Trust and Clearing Corp. (DTCC), the Securities Industry and Financial Markets Association (Sifma), and the Investment Company Institute (ICI), largely passed without problems, but the work required to accomplish it has reportedly left some participants wondering whether they should go further.
“There’s a lot of talk about T+1,” John Abel, executive
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