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Depository Trust & Clearing Corporation announces timetable for settlement optimization.

New York City: The Depository Trust & Clearing Corporation announced a timetable for the first phase of settlement optimization, a significant enhancement aimed at removing an entire market day of settlement exposure without eliminating a calendar day from the standard trade settlement process.

The Depository Trust & Clearing Corporation is the premier post-trade market infrastructure for the global financial services industry. By focusing initially on re-engineering the night cycle, a processing batch occurring in the overnight hours, DTCC seeks to significantly increase settlement rates going into the next morning. Today's more sequential algorithm results in a night cycle settlement rate of about 45% for all transactions during that period. However, DTCC estimates it can increase that same settlement rate to as high as 90% as a result of the re-engineering.

Based on support and feedback from the Settlement Optimization Working Group, DTCC is taking a phased approach to the implementation of Settlement Optimization, beginning with Night Cycle Re-engineering.

This increase in settlement in the night cycle is a prerequisite for the Working Group to explore the implementation of Settlement Optimization Phase 2, the introduction of morning settlement in addition to today's end-of-day settlement process. By moving from the afternoon of settlement date to the morning before market open, the risk associated with funds settlement will be reduced.

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Publication:Daily the Pak Banker (Lahore, Pakistan)
Date:Jun 8, 2018
Words:215
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