Kevin Burns, senior industry and business operations analyst for Computershare, recently penned an article for the Securities Transfer Association (STA) (he is an STA committee co-chair) titled, “Shortening the Settlement Cycle: Stopping for a Quick Breath.” As a subject matter expert, Kevin offers a brief history of the effort as well as an overview of all of the committees and working groups involved in the effort.
Computershare supports a reduction in the U.S. settlement cycle for equities, municipal and corporate bonds, and unit investment trusts from T+3 (trade date plus three days) to T+2 (trade date plus two days) as a means to reduce credit and liquidity risk. This change will increase efficiency and get the U.S. in line with other capital markets around the world.