Shortened Settlement Cycle Resource Center

Industry Initiative to Shorten the US Securities Settlement Cycle

On September 5, 2017, the US settlement cycles for a range of securities—including equities, municipal and corporate bonds, and unit investment trusts—migrated from trade date plus three days (T+3) to trade date plus two days (T+2). The successful transition to T+2 was the culmination of a multi-year, industry-led effort that was led by the Depository Trust & Clearing Corporation (DTCC) and endorsed by ICI’s Board of Governors in February 2014.

The DTCC-formed Industry Steering Committee (ISC) was co-chaired by Marty Burns, ICI’s chief industry operations officer, and Tom Price, managing director for operations, technology and business continuity planning at the Securities Industry and Financial Markets Association (SIFMA). The ISC engaged extensively with regulators and industry stakeholders to facilitate the smooth transition to T+2.

A shortened settlement cycle has a number of advantages, including:

  • closer links between settlement time frames for portfolio securities and fund shares;
  • consistency between US settlement cycles and those across the globe, helping funds better manage liquidity and cash flows; and
  • reduced operational and counterparty risks, enhance liquidity, better use of capital, and significant process efficiencies for market participants—all major benefits to investors.

DTCC has put together a comprehensive website that details the initiative—to find out more, visit

Or, for more information, click on the links below.