04/10/2024 | News release | Distributed by Public on 04/10/2024 14:14
This post is based on the T+1 Industry Briefing, held April 8, 2024, and edited for clarity.
The transition to a T+1 settlement cycle has been a multi-year project that eclipses the effort it took to transition the industry to T+2 back in 2017. As of today, April 8th, we have 50 days until May 28th - the industry-led and regulatory-mandated transition date to T+1 in the U.S.
In reality, we have 46 days until Friday, May 24th, which is the beginning of the transition weekend when DTCC will be kicking off their conversion plans. We are joined by ICI, DTCC, and Deloitte: thank you to our industry partners for the guidance and collaboration on this historic journey for the financial services industry.
Getting the U.S. markets to a T+1 settlement cycle has been a goal since the U.S. moved to T+3 from T+5 back in 1995. So, this has truly been a 29-year journey. In 2020, the industry started to explore what was needed to transition to T+1 including the impacts to the markets, participants, and products.
In addition, we are seeing a global trend of accelerating settlement cycles:
These moves around the globe are likely one of the biggest infrastructure changes facing our industry since Y2K. Why are we doing this and why is it important?
To access industry resources for the transition, visit ust1.org.
For the full briefing discussion, watch the replay on demand. Topics include the rule changes and meeting regulatory requirements, considerations for buy and sell-side firms, allocations - confirmations - affirmations, testing and procedures, international considerations, and more.
Tom Price is a managing director and head of technology, operations and business continuity for SIFMA.