18 February 2022

Submission date extended – Call for Proposals: The SWIFT Institute invites proposals for research on the shortening of securities settlement cycles

Securities settlement cycles: Moving to T+1, why not T+0?

The SWIFT Institute invites proposals for research on the shortening of settlement cycles in light of industry calls to bring greater efficiencies to the settlement cycle and reduce ‘trapped’ liquidity by moving to T+1 settlement.

The Securities Industry and Financial Markets Association (SIFMA), the Investment Company Institute (ICI), and The Depository Trust & Clearing Corporation (DTCC) have targeted 2024 to shorten the U.S. securities settlement cycle from T+2 to T+1. In response, some securities participants have signalled concerns due to time zone constraints and additional requirements including the need to foresee foreign exchange transactions.

Practitioners state that trade and settlement discrepancies are typically only discovered on T+1 and shortening the existing cycle could create unnecessary costs and settlement risks for global investors.

Additionally, there is some discussion across the securities industry about making an even greater leap by moving to a T+0 “end of day’ settlement cycle. These discussions raise concerns over the cost to industry of making such a change, and the resulting operational impact, both of which could be significant.

Research and conclusions on this topic will bring valuable insights to the financial community and contribute to the wider policy and regulatory debate.

A grant of EUR 25,000 will be awarded to the author of the selected proposal.
Deadline for submissions: No later than May 6 2022.

Full Call for Proposals: Download

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