Steering Committee, Working Group To Drive US Implementation of T+2

The Depository Trust and Clearing Corporation (DTCC), in collaboration with the financial services industry, has formed an industry steering committee and an industry working group to facilitate the move to shorten the settlement cycle in the US for trades in equities, corporate and municipal bonds, and unit investment trusts (UITs). The move from the current T+3 settlement cycle to T+2 will reduce operational and systemic risk by limiting exposure and creating greater efficiencies in trade processing.

Co-Chaired by Kathleen Joaquin, chief industry operations officer of the Investment Company Institute (ICI), and Tom Price, managing director of Operations, Technology & Business Continuity Planning at the Securities Industry & Financial Markets Association (SIFMA), the Industry Steering Committee (ISC) comprises senior-level representatives from associations and firms representing stakeholders, including buy-side and sell-side firms. The ISC will be responsible for overseeing the US move to T+2; driving the deliverables of the Industry Working Group (IWG); providing guidance and support to address technological and process building blocks; and communicating changes to the industry. The IWG, under the guidance of the ISC, is responsible for identifying and executing a tactical plan to implement the business and rule changes required to shorten the US settlement cycle to T+2 in a timeframe that is acceptable for the industry.

As part the ISC’s commitment to informing the industry on topics related to shortening the settlement cycle in the US,
an independent website
has been created to provide the public with an information hub focused on the move to T+2. The website includes details pertaining to the background and purpose of the initiative; progress being made by the ISC and IWG; next steps; and other educational information.


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