INNOVATION FROM DTCC - The AMT Forum attended DTCC's virtual event on 6/29 regarding major new innovative proposals under consideration by the Securities Industry's central clearing facility. DTCC would welcome input from all market participants regarding "potential" opportunities to settle equity securities trades and certain fixed income transactions on trade date, meaning T + 0.
The AMT Forum is especially dedicated to enabling buy-side professionals to talk with their peers about the "business of the business", even though the vast majority of buy-side industry members, including many top managers, are currently "Working From "Home".
The AMT Forum is using its own Zoom Meeting Resources to obtain your input concerning the following straightforward questions:
1. T + 0 Settlement - Do you feel T + 0 or same day settlement would be helpful to your business, especially because it would eliminate the perceived risk associated with the current T + 2 standard that exists in the marketplace?
2. Would you also anticipate less stringent margin requirements
if the industry moved to T + 0 settlement? Further, would likely lower margin guidelines be important to your investment management business model?
3. Regardless of whether T + 0 becomes a new industry standard, DTCC is also offering customized API's that individual firms can typically develop to achieve certain compressed securities settlement timeframes - would your firm's senior management be interested in pursuing this alternative approach to overall transaction risk reduction to foster the interests of your ultimate investors?
Please stay tuned for further announcements from The AMT Forum - our next Live Zoom Meeting is scheduled to be held on Wednesday, 7/8/2020, beginning at 10:00 am ET!
Also, please feel free to reach out to industry members George Marootian and Xavier Touret of Natixis Investment Managers, should you have an interest in assisting our overall trade group program concerning organizing "business of the business" meetings of senior buy-side executives. Mr. Marootian is EVP of Technology at Natixis and Mr. Touret is Natixis' SVP and Deputy Head of Global Audit.
Thanks for your interest in The AMT Forum!