Accelerating Settlement: A Conversation with SIFMA and DTCC

The Depository Trust & Clearing Corporation (DTCC) recently issued a white paper on shortening the settlement cycle for U.S. equities to one business day after the trade is executed (T+1).

The DTCC paper, noted SIFMA president and CEO Kenneth E. Bentsen, Jr., “addresses important issues to enhance our securities settlement processes, which are critical to the continued resiliency of our markets and market operations. SIFMA, along with DTCC and ICI, led the effort to shorten the settlement cycle from 3 to 2 days in 2017, which required addressing multiple functions and rules. Similarly, moving forward on both the integrated settlement model and moving to a T+1 settlement cycle will be a substantial undertaking requiring broad industry actions.”

In this video, Bentsen sits down with Mike Bodson, president and CEO of DTCC, to talk about the effort to accelerate the settlement cycle. Their conversation covers the steps required to get to T+1, including the challenges and operational considerations, the timeline for change, and what could happen after T+1 is reached.

Kenneth E. Bentsen, Jr. is president and CEO of SIFMA, the voice of the nation’s securities industry. He is also chief executive officer of the Global Financial Markets Association (GFMA).

Michael C. Bodson is President and Chief Executive Officer of DTCC. He is also President and Chief Executive Officer of DTCC’s principal operating subsidiaries, DTC, FICC and NSCC and a member of DTCC’s Board of Directors.