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US Equities recently changed from T+3 to T+2: https://www.sec.gov/news/press-release/2017-68-0 https://www.sec.gov/news/press-release/2017-68-0 There are many
by 300bps 6y ago
US Equities recently changed from T+3 to T+2:
https://www.sec.gov/news/press-release/2017-68-0 https://www.sec.gov/news/press-release/2017-68-0
There are many types of securities that are already settling at T+0.
- the_mitsuhiko 6y agoWhat does T+0 mean? Instantly or same day?
- tobyjsullivan 6y agoAccording to [0]: > 'T' is the transaction date If that's an accurate definition, then it's safe to say it would technically mean same day. Simultaneously, if we want to be technically accurate to a pedantic level, "instant" would be impossible given speed limits of information transmission (speed of light), etc. So "T+0" couldn't mean "instant" in any case. Maybe some settlements are, in fact, near-instant but I don't think that's implied by "T+0". [0] https://www.investopedia.com/ask/answers/what-do-t1-t2-and-t3-mean/ https://www.investopedia.com/ask/answers/what-do-t1-t2-and-t...
- 300bps 6y agoSame day settlement. Definitely not instant.
- kolbe 6y agoIt blew my mind when they went from T+3 to T+2. I couldn't fathom why they would go about changing it, but not go to overnight settlement. Government, though.
- aeyes 6y agoYou might be surprised how much of the modern world is running on CSV files on FTPs.
- throw0101a 6y ago> Government, though. Equities clearing and settlement is done privately: * https://en.wikipedia.org/wiki/Depository_Trust_%26_Clearing_Corporation https://en.wikipedia.org/wiki/Depository_Trust_%26_Clearing_... If the members of the DTCC want to have it done faster, they'll request it. There's been talk, but it involves everyone agreeing to it and changing their internal workflows as well AFAICT.
- deleted 6y ago[deleted]