DTCC Enacts 2-Day Settlement After Erroneous Member Trades Miss Fed Deadline
Updated
Updated · Bloomberg · Jun 30
DTCC Enacts 2-Day Settlement After Erroneous Member Trades Miss Fed Deadline
2 articles · Updated · Bloomberg · Jun 30
Summary
DTCC said it will process two days of US securities transactions on Tuesday after a member firm submitted a significant number of erroneous trades.
Those faulty trades created a large settlement imbalance on Monday that could not be fixed before the Federal Reserve's daily cutoff for completing transactions.
The clearinghouse responded by activating a formal contingency procedure, a rare double-settlement day mechanism typically reserved for market disruptions and some holidays.