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NSCC to Increase Clearing Hours

Steven Lofchie Commentary by Steven Lofchie
“As interest in near round-the-clock trading of U.S. equities grows, we are meeting this demand by extending our clearing hours to support our clients and further strengthen the safety and soundness of the markets.”
Brian Steele, Managing Director, President of Clearing and Securities Services, DTCC
“As interest in near round-the-clock trading of U.S. equities grows, we are meeting this demand by extending our clearing hours to support our clients and further strengthen the safety and soundness of the markets.”
Brian Steele, Managing Director, President of Clearing and Securities Services, DTCC

The National Securities Clearing Corporation ("NSCC"), a subsidiary of the Depository Trust & Clearing Corporation ("DTCC"), will "increase clearing hours to support extended trading."

In a news release, the DTCC said it is targeting Q2 2026 for implementation, pending regulatory approval.

The DTCC explained that the NSCC began phase 1 of extended trading in September 2024, allowing market centers and trading platforms to submit trades 2.5 hours earlier, at 1:30 AM ET.  The DTCC said that Phase 2, starting in Q2 2026, will extend NSCC's operation to 24x5, from "Sunday at 8:00 PM ET to Friday at 8:00 PM ET," supporting overnight trading from ATS and Exchanges.

Commentary

Steven Lofchie
Steven Lofchie

Going to 24-hour trading raises a raft of regulatory issues and operational questions. e.g. what does T plus 1 settlement require in a round-the-clock trading environment? At what hour of the calendar day is there no longer an obligation to settle the trade on the next day?

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Primary Sources

  1. DTCC Press Release: DTCC’s NSCC to Increase Clearing Hours to Support Extended Trading

Tags

Regulated Activities
Trading
Sub-Activity
Clearing Procedures
Body of Law
Securities Law
Jurisdiction
US - Federal
Organization
Trade / Industry Associations
Sub-Author
DTCC