DTCC Triggers Rare Double-Settlement Day After Wave of Erroneous Trades
- The Depository Trust & Clearing Corp. said it will run an unscheduled second settlement cycle on June 30 to clear a backlog of erroneous trades submitted by a member firm, Bloomberg reported.
- Double-settlement days are rare and typically signal operational stress at a clearing member; JPMorgan's separately disclosed $4 million 'salami' reconciliation lapse highlights how thin the margin for error has become in post-trade plumbing.
- The episode is likely to draw attention from the SEC and bank supervisors already reviewing novel ETF structures and equity funding costs for market-structure risk.