Spotlight: Get Ready for T+1 Testing with DTCC

As industry-wide testing is critical to a successful transition to T+1 settlement on May 28, 2024, DTCC’s Val Wotton (pictured), Managing Director and General Manager, Institutional Trade Processing, has announced the following, “Today marks a pivotal moment as DTCC’s T+1 testing program kicks off in preparation for the U.S. move to T+1.  Due to the number and magnitude of changes that will be required to achieve a T+1 settlement cycle, it is critical that firms conduct a comprehensive and well-coordinated industry test to ensure readiness and a successful implementation. This includes end-to-end testing from trade execution to trade settlement, involving Institutional Trade Processing (ITP), National Securities Clearing Corporation (NSCC) and Depository Trust Company (DTC) as well as other relevant market infrastructures. DTCC’s T+1 testing program will run August 14 through May 31, 2024, leveraging 21 bi-weekly testing cycles.

“At DTCC, helping to ensure a seamless transition for our members and the wider industry remains a top priority, and we urge firms to take full advantage of our robust testing opportunities. For those firms who may still leverage manual post-trade processes, it is critical that they maximize automation to achieve timely settlement.  The SEC has emphasized that institutional trades must be allocated, confirmed, and affirmed as soon as is technologically possible and no later than trade-date, referred to as Same Day affirmation (SDA). This can be best achieved through automation.

“As we venture into this new era, DTCC’s Consulting Services team can provide comprehensive advice to market participants who wish to test, assess and optimize their post-trade process in advance of T+1.”