About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

US Reduces Settlement Timeframe from T+3 to T+2 Effective Immediately

Subscribe to our newsletter

The US T+2 Industry Steering Committee has achieved its objective of reducing settlement time to trade data plus two days (T+2) for securities including US equity, corporate and municipal bonds, and unit investment trust trades. The settlement cycle was last changed in 1995 from T+5 to T+3 and brings the US in line with the EU, which moved to T+2 settlement in January 2015.

The steering committee was set up by DTCC in 2014 and is co-chaired by the Investment Company Institute (ICI) and the Securities Industry and Financial Markets Association (Sifma). The reduction in settlement time is expected to reduce market and counterparty risk, increase financial stability and improve safety and efficiency for investors and market participants. The alignment of the US settlement timeframe with other major markets that use T+2 settlement also provides a step towards global settlement harmonisation.

The SEC finalised rule changes to facilitate the shorter settlement cycle in March 2017, and nine other regulators and self-regulatory organisations have also taken action. DTCC estimates the lower levels of risk associated with a shorter settlement cycle will reduce the average daily capital requirements for clearing trades through its DTCC National Securities Clearing Corporation by approximately 25%, or $1.36 billion.

Murray Pozmanter, head of clearing agency services and global operations and client services at DTCC, comments: “The US move to a T+2 settlement cycle marks the most significant change to the market’s settlement cycle in over 20 years. A collaborative industry-driven effort with strong support from regulators, the T+2 initiative has achieved its common goal.”

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Best practice solutions for client lifecycle management

The challenges of client lifecycle management continue to increase, driven by regulation and requiring financial institutions to review processes around client onboarding, Know Your Customer (KYC) and client data maintenance. The webinar will outline the challenges faced by financial institutions, discuss best practice solutions, detail the need to integrate high quality entity data, and include...

BLOG

US ESG Pullback Opens a New Competitive Question

US resistance to sustainability disclosure at state and federal level is widening the regulatory gap for US-domiciled firms operating internationally. In March 2025, the Securities and Exchange Commission (SEC) voted to end its defence of federal climate-disclosure rules. In December 2025, the White House issued an executive order targeting proxy advisers accused of promoting ESG...

EVENT

Eagle Alpha Alternative Data Conference, Spring, New York, hosted by A-Team Group

Now in its 9th year, the Eagle Alpha Alternative Data Conference managed by A-Team Group, is the premier content forum and networking event for investment firms and hedge funds.

GUIDE

Enterprise Data Management

The current financial crisis has highlighted that financial institutions do not have a sufficient handle on their data and has prompted many of these institutions to re-evaluate their approaches to data management. Moreover, the increased regulatory scrutiny of the financial services community during the past year has meant that data management has become a key...