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      SIFMA supports a move to shorten the settlement cycle for U.S equities, corporate bonds, municipal bonds, and unit investment trusts to trade date plus two days (T+2) from the current T+3 in the third quarter of 2017. SIFMA believes that shortening the settlement cycle will meaningfully benefit investors and reduce counterparty risk, decrease clearing capital requirements, reduce pro-cyclical margin and liquidity demands,
      and increase global settlement harmonization.

      SIFMA notes that shortening the settlement cycle is a fundamental change to existing market practices that must be implemented with great care to avoid any operational disruptions that could negatively impact investors. SIFMA believes the best path forward is a measured approach that recognizes the challenges to diverse market participants, including individual investors and products.

      T+2 Industry Steering Committee

      • DTCC, in leading the Shorter Settlement Cycle (SSC) initiative to prepare the industry for a move to T+2, formed in 2014 an Industry Steering Committee (ISC) represented by a broad range of firms and trade associations and co-chaired by SIFMA and the Investment Company Institute (ICI). The ISC oversees the Industry Working Group (IWG), and Sub-Working Groups (SWGs). These groups are responsible for assessing the scope, requirements, and changes needed to facilitate the implementation of T+2.


      • In June 2015, the ISC released a white paper outlining the timeline and industry-level actions required to move to a two-day settlement cycle in the U.S. by the end of Q3 2017. The ISC is currently focused on the compression of timeframes for clearing and settling, specific regulatory rule changes, as well as changes to the trade processing, asset servicing, and other systems and process changes while maintaining Safety and Soundness.

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      T2 Symposium Opening Remarks

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      • While “T+2” appears to be simple it is actually very complex; it is a fundamental change to the Global Financial Services Ecosystem.


      • The challenges are different between:

      • Institutional and Retail,

      • International and Domestic

      • Industry Participants must now begin to complete their Assessments and identify the changes required to support the target “Go-Live” date of September 5, 2017

      • Appropriate Budgets need to be secured and obtained now to kick off necessary work in the second quarter of 2016.

      • Critical to look and evaluate what you are required to do?

      • Enter into discussions with your business partners.

      • Include your vendors.

      • Ask tough questions – are you ready to support “T + 2”?

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      T2 Symposium Panel

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      • Industry Participants must be ready to support Industry Test by the beginning of First Quarter of 2017.

      • Industry has organized comprehensive testing facilities to ensure adequate testing of the changes and the process.

      • Beta Testing

      • Unit Testing

      • UAT

      • Dress Rehearsals

      • Test the entire trade cycle including:

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      • Workflows

      • Order Placement

      • Order Execution

      • Post-Trade Processes (Confirmation/Affirmation/Matching)

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      • Settlement Instructions

      • Accounting

      • Margin

      • Securities Lending

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      • Funding / Cash Management

      • FX

      • Custody

      • Funds Administration

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