Accelerating to T+1: Functional Review

By DTCC Connection

The U.S. Securities and Exchange Commission recently proposed rule changes to accelerate the settlement cycle to T+1. If the rule changes are adopted, a T+1 cycle for U.S. equities transactions could be implemented as soon as March 31, 2024 (subject to change based on \ regulators’ feedback).

To help firms plan and prepare for industry testing, DTCC has launched a series of virtual forums to help clients and the industry understand the impact of Accelerated Settlement and T+1 on specific market processes. Moderated by David Kirby, DTCC Executive Director, Head of Americas Relationship Management, the latest virtual session featured Robert Cavallo, DTCC Director, Clearance & Settlement Product Management and Louis Lepore, DTCC Director, Clearance and Settlement Product Management.

Related: Discover More from the Accelerating to T+1 Series

Watch the full panel discussion on DTCC Connection

Below are highlights from the discussion:

Industry Collaboration
DTCC has been working with SIFMA and ICI and the T1 Industry Working Group to outline the steps needed for the T+1 shift and communicate those changes to the industry.

As Cavallo stated, “The impact to every firm will be different, and if you have not already, you need to start getting plans together to be ready for a T+1 settlement cycle.”

As the industry moves closer to shortening the settlement cycle to T+1, firms should be assessing their overall readiness. There needs to be a collective inspection from all processes and what may need to be done from a technology, behavioral, and operational standpoint.

Are You Ready?
The removal of 24 hours from the settlement cycle will cause significant changes for the industry. The move to T+1 will have both upstream and downstream effects on the transaction lifecycle. From same-day account openings to the prime broker disaffirmation process, from retail and institutional transactions to corporate actions, all areas of clearing and settling will experience some type of change in order to accommodate the shortened cycle.

With a move to T+1, the DTC night cycle will begin at 11:30 PM on trade date and conclude at 1:30 AM on settlement date, allowing the DTC output to be distributed to firms by 2:00 AM. There will be no changes to DTC’s day cycle processing schedule. Similar to the move to T+2 in 2017, DTCC is busy preparing communications to the industry, including playbooks, executive summaries, functional requirement papers, high-level testing paper and a detailed testing paper. All of these documents can be found at on

Mark Your Calendars

Without question, firms need to begin preparing now for the transition to T+1 in 2024. As firms prepare and assess, here are a few important dates to keep in mind:

For more information, including important dates and processing changes, the implementation playbook, frequently asked questions and related documents, visit



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DTCC Connection

DTCC experts share their insights on post-trade processing, risk management and the latest technological innovations to protect the global financial marketplace