NSCC to increase clearing hours
18 March 2025
Image: Maryna/stock.adobe.com
The National Securities Clearing Corporation (NSCC), a subsidiary of the Depository Trust and Clearing Corporation (DTCC), is planning to increase clearing hours to support extended trading.
The NSCC aims to deliver increased client value by maximising liquidity and reducing counterparty risk by applying its CCP guarantee to overnight activity across different time zones for global participants.
Brian Steele, managing director, president of clearing and securities services at DTCC, comments: “As interest in near round-the-clock trading of US 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.”
The first phase of the new extended trading hours schedule was implemented in September 2024 by enabling market centres and trading platforms to submit trades at 01:30 ET — approximately two and a half hours earlier.
Under phase two, targeted for Q2 2026, NSCC will operate 24/5, from Sunday at 20:00 ET to Friday at 20:00 ET, to support overnight trading activity from alternative trading systems (ATS) and exchanges.
DTCC is working with the Securities Industry and Financial Markets Association (SIFMA), regulators, and industry participants to support the alignment of extended trading hours and any required changes to post-trade processes.
“SIFMA and its membership are supportive of the establishment of a consistent US trading day across exchanges, which enables increased access to US markets for a global client base,” says Steve Byron, managing director, head of technology, operations, and business continuity at SIFMA.
He adds: “The expansion of trading hours, however, presents several challenges for the industry that will need to be overcome to minimise disruption to firms and existing post-trade clearing and settlement processes.”
The NSCC aims to deliver increased client value by maximising liquidity and reducing counterparty risk by applying its CCP guarantee to overnight activity across different time zones for global participants.
Brian Steele, managing director, president of clearing and securities services at DTCC, comments: “As interest in near round-the-clock trading of US 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.”
The first phase of the new extended trading hours schedule was implemented in September 2024 by enabling market centres and trading platforms to submit trades at 01:30 ET — approximately two and a half hours earlier.
Under phase two, targeted for Q2 2026, NSCC will operate 24/5, from Sunday at 20:00 ET to Friday at 20:00 ET, to support overnight trading activity from alternative trading systems (ATS) and exchanges.
DTCC is working with the Securities Industry and Financial Markets Association (SIFMA), regulators, and industry participants to support the alignment of extended trading hours and any required changes to post-trade processes.
“SIFMA and its membership are supportive of the establishment of a consistent US trading day across exchanges, which enables increased access to US markets for a global client base,” says Steve Byron, managing director, head of technology, operations, and business continuity at SIFMA.
He adds: “The expansion of trading hours, however, presents several challenges for the industry that will need to be overcome to minimise disruption to firms and existing post-trade clearing and settlement processes.”
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
