NSCC liquidity shortfalls raise T+1 concerns
Lagging FX settlement processes could become a problem for clearing houses
The move to one-day settlement for US equities, known as T+1, may be contributing to record liquidity shortfalls at the National Securities Clearing Corporation (NSCC), which clears all US-listed stock trades.
NSCC, a subsidiary of the Depository Trust & Clearing Corporation (DTCC), reported a liquidity shortfall of $7.1 billion in the fourth quarter of 2024, which it blamed on year-end “index rebalancing”.
The shortfall represents the gap between the qualifying liquid resources (QLRs) –
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