About a-team Marketing Services
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: Valuations for Leveraged Loans

This webinar has passed, but you can view the recording here. MAKE DECISIONS WITH CONFIDENCE Financial services firms need access to accurate,transparent and complete data in order to meet complex business demands. Bloomberg understands these challenges, and is committed to providing innovative enterprise solutions and expert service. Michael Pellerito, Bloomberg Valuation Service (BVAL) Product Manager, discusses the...

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

Digital Assets & Tokenisation Briefing, New York

A-Team Group’s Digital Assets & Tokenisation Briefing assembles an exclusive group of CxOs and senior technology innovators. These leading market practitioners and infrastructure providers are collectively building the digital rails and decentralised networks that will power Wall Street 2.0.

GUIDE

Regulatory Data Handbook 2024 – Twelfth Edition

Welcome to the twelfth edition of A-Team Group’s Regulatory Data Handbook, a unique and useful guide to capital markets regulation, regulatory change and the data and data management requirements of compliance. The handbook covers regulation in Europe, the UK, US and Asia-Pacific. This edition of the handbook includes a detailed review of acts, plans and...