Memo #
29420

SEC Chair White Response to ICI and SIFMA T+2 Letter on Required Regulatory Changes
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[29420]

October 12, 2015

TO:

ACCOUNTING/TREASURERS COMMITTEE No. 26-15
BANK, TRUST AND RETIREMENT ADVISORY COMMITTEE No. 34-15
BROKER/DEALER ADVISORY COMMITTEE No. 45-15
EQUITY MARKETS ADVISORY COMMITTEE No. 22-15
OPERATIONS COMMITTEE No. 22-15
SECURITIES OPERATIONS ADVISORY COMMITTEE
SMALL FUNDS COMMITTEE No. 30-15
TRANSFER AGENT ADVISORY COMMITTEE No. 52-15
INTERNATIONAL OPERATIONS ADVISORY COMMITTEE No. 27-15

RE:

SEC CHAIR WHITE RESPONSE TO ICI AND SIFMA T+2 LETTER ON REQUIRED REGULATORY CHANGES

 

 In June, the Industry Steering Committee (ISC) to shorten the U.S. securities settlement cycle released a white paper recommending a migration target of the 3rd quarter, 2017 for the move to T+2 settlement cycle.  Concurrent with the release of the white paper, ICI and SIFMA as co-chairs of the ISC sent a letter to the SEC Chair Mary Jo White, and other regulators and SROs, outlining the regulatory changes necessary for the shortened settlement.

On September 15, Chair White responded to the joint SIFMA and ICI June letter. [1]  In her reply Chair White expressed strong support and commended the industry for the efforts working towards shortening the settlement cycle. Further, Chair White:

  • directed SEC staff to work closely with SROs regulators, such as the exchanges, to develop a schedule by the end of October for SRO rule changes needed to move to T+2 settlement,
  • directed SEC staff to craft a rule amendment proposal to require settlement be complete not later than trade date + 2 days, and
  • requested a detailed implementation plan from the industry for achieving the recommended target implementation timeframe.

As Chair White requested, the Industry Steering Committee is now quickly moving forward with the development of a detailed implementation plan, including industry testing, to meet the 3rd quarter, 2017 target timeframe.

The Operations Department will continue to engage with members to collaborate on the implementation plan and provide regular progress updates on the industry initiative, and, as co-chair of the ISC, work with the various industry groups and regulators to advance the project toward completion.

Martin A. Burns
Chief Industry Operations Officer

 

endnotes

[1] Following the receipt of Chair White’s letter, the ICI issued a press release available at https://www.ici.org/pressroom/news/15_news_t2_statement