Settlement Optimization proposes an alternative settlement model through the introduction of four primary processing enhancements. While each of the Settlement Optimization enhancements offers its own set of unique benefits, taken together these enhancements contribute to a more holistic and streamlined settlement process.
- Night Cycle Reengineering
- Intraday Settlement Slice
- Enhanced Asset Lending
- NSCC Pledge Facility
Based on feedback from the Settlement Optimization Industry Working Group, DTCC plans to implement each of the proposed settlement optimization enhancements separately beginning with night cycle reengineering.
For more information on the Settlement Optimization effort, contact This email address is being protected from spambots. You need JavaScript enabled to view it..
The following are news articles that highlight aspects of the initiative. To sort items within the table, click on the any column heading.
News
| # | Name | Description | Added On |
|---|---|---|---|
| 1 |
 A Different Approach to Accelerating Settlement and Reducing Risk | Read Murray Pozmanter's explanation of Settlement Optimization for Phase 1 and see the prerequisites to Phase 2. | Aug 06, 2018 |
| 2 |
Early Transaction Submission Testing Yields Promising Results | Early Transaction Submission Testing Yields Promising Results Client testing is now available to submit transactions for processing earlier than the current input start time of 3AM in DTCC’s PSE region. Learn more in this DTCC Connection article. | Jun 08, 2018 |
| 3 |
DTCC Plans First Phase of Settlement Optimization with Implementation Targeted for Next Year | In this press release, DTCC has announced a timetable for the first phase of settlement optimization, a significant enhancement aimed at removing an entire market day of settlement exposure without eliminating a calendar day from the standard trade settlement process. | May 08, 2018 |
| 4 |
Creating an Alternate Settlement Model (Part 1) | Learn more about Night Cycle Reengineering component in this DTCC Connection article. | Mar 14, 2018 |
| 5 |
Creating an Alternate Settlement Model (Part 2) | Learn more about the Intraday Settlement Slice component in this DTCC Connection article. | Apr 10, 2018 |
| 6 |
Creating an Alternate Settlement Model (Part 3) | Learn more about the Enhanced Asset Lending NSCC Margin Pledge Facility components of Settlement Optimization in this DTCC Connection article. | May 30, 2018 |
| 7 |
Night Cycle Reengineering: An Innovative Approach to a Traditional Problem | Discover how DTCC created a more dynamic and intelligent processing environment in this DTCC Connection article. | Mar 28, 2018 |
The following are important notices relating to Settlement Optimization. To sort items within the table, click on any column heading.
Important Notices
| # | Name | Description | Added On |
|---|---|---|---|
| 1 |
 DTC Important Notice 11603-19: Settlement Optimization | As an update to Important Notice #11380-19, DTC is delaying the start of the client testing window to accommodate the need for additional internal testing scenarios. | Jun 13, 2019 |
| 2 |
DTC Important Notice 11380-19: Settlement Optimization | The purpose of this DTC internal notice is to provide clients with an update to the Night Cycle Reengineering component of Settlement Optimization targeted for implementation on September 26, 2019 (pending regulatory approvals), as well as details on processing rules and client testing. | May 20, 2019 |
| 3 |
DTC Important Notice 8631-18: Settlement Optimization | The purpose of this DTC important notice is to provide clients with an overview specifically of the Night Cycle Reengineering component of Settlement Optimization, targeted for implementation in 3Q 2019, pending regulatory approvals. | May 08, 2018 |
| 4 |
NSCC Important Notice A 8553: Settlement Optimization | The purpose of this NSCC important notice is to provide clients with an overview specifically of the Night Cycle Reengineering component of Settlement Optimization, targeted for implementation in 3Q 2019, pending regulatory approvals. | May 08, 2018 |
Documents relating to Settlement Optimization will be added as the initiative progresses. To sort items within the table, click on any column heading.
Documentation
| # | Name | Description | Added On |
|---|---|---|---|
| 1 |
Night Cycle Reengineering Processing Rules | This document provides a detailed outline of how the reengineered night cycle will work and highlights key changes. Modifications may be needed based on additional industry feedback. | Feb 05, 2019 |
| 2 |
Night Cycle Reengineering Simulation User Guide | This document describes how to receive a Simulated Optimized Settlement report for the night cycle. Clients may compare the impact that the optimization engine would have had on their night cycle settlement rates. | Feb 05, 2019 |
| 3 |
Modernizing the U.S. Equity Post-Trade Infrastructure | DTCC is exploring several opportunities to optimize and accelerate settlement beyond T+2, enabling participants to reduce capital requirements and operational costs while preserving the resiliency of the current infrastructure and reducing systemic risk. | Jan 30, 2018 |
