Wall Street Passes Early T+1 Test With No Rise in Failed Trades
- Data offers first major indicator of impact of faster trading
- A rise in failures was expected by firms preparing for switch
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The proportion of US securities transactions failing to settle remained largely steady on Wednesday, as Wall Street aced the first major test of its move to a faster trading system.
Data released by the Depository Trust & Clearing Corp. show the “Fails Rate” recorded in its Continuous Net Settlement system — a platform that aims to minimize the exchange of securities between counterparties by netting off trades — was 1.90% on Wednesday. That compares to a daily average of 2.09% last week, before new rules halved the time allowed to complete every transaction to a single day.