Harmonizing Securities Settlements Practices with Global Markets
The Securities Depositories of the US, Canada, Mexico, Peru and Argentina are key institutions that perform the vital post-trade process of securities settlement. In addition, they hold records of securities accounts and transactions. In line with the 2014 move of the majority of European markets to T+2, the market institutions in the Americas determined that they needed to harmonize their practices and improve the safety and efficiency of transaction settlement.
What has driven the need for T+2?
In these five markets in the Americas, the settlement period for certain securities is currently the transaction date plus three business days, often referred to as T+3. The move to T+2 and a shorter settlement cycle will mitigate counterparty risk for all industry participants.
When will it happen?
The Go-Live date for all four markets will be September 05, 2017. Regular Way transactions in the relevant security types for each market will be T+2 from that date forward.
An informative website provided by DTCC regarding the migration to T+2 is at T+2 Settlement website.
For the Canadian migration, please refer to Canadian Capital Markets Association website.
For much more detail, please see the SEC ruling authorizing T+2 for the US markets at: Download Amendment to Securities Transaction Settlement Cycle
Last updated: 26 October 2017