The financial markets successfully navigated the pandemic-induced volatility in March and April 2020, 2021年初再次出现, a testament to the operational resilience of both market participants and market infrastructures. On March 12, 2020, 存 set a new single day record, processing over 363 million equity transactions. This was more than 15% higher than the previous peak of 315 million transactions, 背景设定在2008年金融危机最严重的时候.
尽管该行业表现出了韧性, the market volatility caused by the Covid-19 pandemic served as a reminder of the importance of robust market infrastructure and risk management practices. 结果是, we thought the first quarter of this year was an appropriate time to share the results of ongoing discussions with the industry about how we can further reduce risks in the settlement cycle as volumes and volatility rise. 我们通过我们的 白皮书，该报告强调了减少美国碳排放的好处.S. equity settlement cycle from T+2 to T+1 and raised awareness of optimal settlement cycles.
尽管该行业表现出了韧性, the market volatility caused by the Covid-19 pandemic served as a reminder of the importance of robust market infrastructure and risk management practices.
然而, in raising awareness of the advantages of accelerating the U.S. equity settlement cycle, several myths were exposed about the current U.S. equity settlement cycle and the infrastructure that supports it. 我们在这里揭开这些神话.
- Myth 1: Same-day settlement (T+0) capabilities were not possible until recently.
当日结算并不是一项新功能. 存’s National Securities 清算 Corporation (NSCC), 股份结算子公司, 和存托信托公司(DTC), 存管和证券结算制度, can clear and settle transactions on the same day (T+0) a trade is executed. 然而, market convention is to settle on a T+2 basis due to market structure complexities, 以及遗留业务和操作流程.
- Myth 2: All trades must be sent to 存 by 11:30am ET each day to be settled the same day.
不完全是. DTC, a T+0 platform, is 存’s central hub where all securities positions are held in the U.S. Transactions settle at DTC on a near-instantaneous basis throughout the day. 涉及双边交易的客户, in which two firms transact directly with one another, send their trade details to DTC for near-instantaneous settlement. These transactions can include money and securities transfers between DTC members – typically custodian banks and broker/dealers.
NSCC，这清除和有效地网罗美国.S. 股票交易每天减少到一个头寸, processes same-day settlement for transactions received prior to 11:30am ET. This timing is critical because it enables transactions to go through NSCC’s continuous netting process, which is crucial to market participants as it consolidates the amounts due from – and owed to – a firm across the securities it has traded, 减少到一个单一的净借方或净贷方.
每一天, netting at NSCC reduces the value of payments that need to be exchanged by an average of 98% or more, which frees up capital and reduces risk for the entire industry. After completing the clearing and netting process in NSCC, the netted positions are sent to DTC for near-instantaneous settlement on the same day.
It is important to note that while NSCC has the capability to extend the deadline beyond 11:30am ET until later in the afternoon, such a move would require industry demand and coordination, 监管机构也需要参与进来.
- 误解3:新技术, 比如分布式账本技术(DLT), is required to achieve same-day or real-time settlement.
在谈到结算周期时间表时, the current T+2 settlement cycle (two business days after the trade is executed) is a market structure convention and shortening it would require industry alignment. Technology – whether legacy or new – is not a factor in determining settlement times.
存 has been building industry support for the move to T+1 for some time, and market participants are galvanizing around this because it will deliver significant benefits, 比如提高资本效率, significant risk reduction and lower margin requirements, 尤其是在高波动时期.
存 continues to explore distributed ledger technology (DLT) and other emerging technologies to determine whether their application could further modernize settlement and reduce cost and risk for the industry. 正如前面提到的, same-day settlement (T+0) is already supported today at NSCC and DTC using existing technology.
- Myth 4: Speed of settlement should be prioritized above everything else.
As market participants have indicated to us, when it comes to settlement, speed is not everything. If trades are settled instantaneously, the benefits of netting are lost. 也, real-time settlement would require all transactions to be paid in full by investors with cash in hand and securities owned for each trade at the moment it’s executed. This makes it extremely difficult for brokers to arrange for the financing that allows people to buy securities on margin, 哪一种是经纪人给投资者的贷款.
While choice in the speed of settlement cycles is important and available today, most market participants choose to prioritize the risk mitigation and cost efficiency benefits of clearing and netting alongside efficient settlement.
This article first appeared in Traders Magazine, June 8, 2021.