Push for T+1 settlement cycle gaining momentum

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But before companies can start planning and allocating resources for the T + 1 shift, the SEC needs to update its rules to shed light on the process.

“Companies do not want to spend the money, make the investment until they know for sure that the regulatory community is going to change the rules properly,” Mr Price said. “In order to make the budgets, in order to allocate manpower, in order to make sure that the whole organization will engage in this discussion, I think certainty and regulatory support is critical.”

To that end, the SEC Mr. Gensler instructed the SEC team to put together a draft proposal for review by the committee on shortening the compromise cycle.

At a virtual conference held by the Healthy Markets Association on December 9, Mr. Gensler was bullied about moving to T + 1 and eventually to the T + 0 settlement, or on the same day.

“The technology is in place today in 2021 to make an arrangement that day,” Mr Gensler said. “Business models aren’t arranged to do it that way, but there are things like approval and allocations that can be … as soon as technologically possible that day.”

The industry report did not recommend moving to T + 0. “When you try to move things too far in advance, it lowers the ability to fix things,” Mr. Burns said, pointing out that the number of failed deals could increase around T + 0.

Mr. Price added: “We have the deepest and most liquid markets in the world, we have a unique advanced clearing and disposal system here in the US, it’s efficient, it works … so I think before we go on a journey to consider even (T + 0), should To understand what the consequences are, you have to get into it with your eyes open. “

Mr Gansler said he also asked staff to check T + 0.

“I do think there will be a future when we have an arrangement that day,” Mr. Gensler said at the Healthy Markets Association conference. “How do we set up the base in the early 200s so we can get to that later?”



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