Reduced settlement periods could save millions

Shortening the time lag between trade execution and settlement in the US by just one day would save $170m a year, says a new report

The global debate over reducing the period of time between the execution and settlement of a trade has received a fillip from new research showing the huge potential savings of such a move.

Research by the Boston Consulting Group, commissioned by The Depository Trust & Clearing Corporation - the clearing and settlement giant in the US - uncovered big cost savings from shortening the trade settlement cycles for equities, corporate and municipal bonds, and unit investment trust trades.

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