ISDA publishes equity derivatives T+2 settlement cycle protocol

28 July 2017

The International Swaps and Derivatives Association has announced the launch of the ISDA 2017 OTC Equity Derivatives T+2 Settlement Cycle Protocol.

The Protocol is designed to help market participants amend the terms of certain equity derivatives transactions to reduce the settlement cycle from three business days (T+3) to two business days (T+2).

This will align market participants with the change in the settlement cycle for most securities transactions in shares that trade on exchanges in the US, Canada, Mexico and Peru, to be introduced on September 5 this year. This process has been driven by market participants to help reduce risk and enhance global settlement harmonization.

Press release

Full protocol

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