DTCC is currently testing T +1 – the new standard for settling trades. Currently, trades are settled T+2. The last change was in 2017 when traders had three days to settle their securities transactions.
CI received a comment from DTCC Managing Director and General Manager, Institutional Trade Processing Val Wotton, who said today is a pivotal moment as DTCC’s T+1 testing program kicks off in preparation for the U.S. move to T+1.
“Due to the number and magnitude of changes that will be required to achieve a T+1 settlement cycle, it is critical that firms conduct a comprehensive and well-coordinated industry test to ensure readiness and a successful implementation. This includes end-to-end testing from trade execution to trade settlement, involving Institutional Trade Processing (ITP), National Securities Clearing Corporation (NSCC) and Depository Trust Company (DTC) as well as other relevant market infrastructures. DTCC’s T+1 testing program will run from August 14 through May 31, 2024, leveraging 21 bi-weekly testing cycles.”
Wotten said supporting firms in the transition is a top priority, and automation is the way to move forward.
“As we venture into this new era, DTCC’s Consulting Services team can provide comprehensive advice to market participants who wish to test, assess and optimize their post-trade process in advance of T+1,” said Wotton.
DTCC processed $2.5 quadrillion in securities in 2022.
