212-220-6776
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.
