Shorter Settlement Times, Easier Capital Markets

Sept. 2, 2017 12:20 a.m. ET

Review | Dates to Watch For | Follow Up | U.S. Economic Calendar | Consensus Estimates | Coming Earnings | Coming U.S. Auctions

Big changes are afoot in the capital markets, with the settlement time for trades being shortened by one-third starting on Tuesday, Sept. 5.

That’s the day that marks the attenuation of the settlement period for equities, corporate bonds, and municipal bonds from three business days to two.

“An investor that sells will now be entitled to receive funds one day sooner,” says Tom Price, managing director of technology and operations for Sifma, a trade group, and co-chair of the so-called T+2 steering committee. And a buyer also will receive his securities one day sooner.

That means that an investor looking to make a college-tuition payment who sells on Monday will have the cash in hand by Wednesday.

Three years in the making, the effort to shorten the settlement time involved 600 people from 10 regulators, including the Securities and Exchange Commission. The change is the first adjustment of settlement time since 1995, when the time went from five days to three.

Price notes that lessening the time between trade and settlement lowers the risk in the trade of cash not being delivered or a counterparty going offline.

In addition to bringing the settlement time in line with other major markets (Canada, Mexico, Argentina, and Peru are also changing that day) it will greatly benefit firms involved in the trades, who must put up more than $5 billion a day in collateral with the central counterparty, freeing up $1.3 billion for their use.

Next Week
Monday 4

U.S. markets are closed in observance of Labor Day.

Economic ministers from Asean meet.

Tuesday 5

Traders return to the market from summer holidays.


Dave & Buster’s Entertainment



PLAY -1.0605542251111872%



Dave & Buster’s Entertainment Inc.


U.S.: Nasdaq


USD57.84


-0.62
-1.0605542251111872%



/Date(1504299600160-0500)/


Volume (Delayed 15m)
:
703323



AFTER HOURS



USD57.84



%


Volume (Delayed 15m)
:
4797




P/E Ratio
24.508474576271187

Market Cap
2459236859.98505


Dividend Yield
N/A

Rev. per Employee
74899.4









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and


Hewlett Packard Enterprise



HPE 2.1493479145400425%



Hewlett Packard Enterprise Co.


U.S.: NYSE


USD14.31


0.3011
2.1493479145400425%



/Date(1504299762870-0500)/


Volume (Delayed 15m)
:
22092243



AFTER HOURS



USD14.32


0.01
0.06988120195667366%


Volume (Delayed 15m)
:
263552




P/E Ratio
11.093023255813954

Market Cap
29665897010.9245


Dividend Yield
1.816911250873515%

Rev. per Employee
223113









More quote details and news »


hold earnings conference calls.


Humana



HUM 0.4386305411070569%



Humana Inc.


U.S.: NYSE


USD258.75


1.13
0.4386305411070569%



/Date(1504299722532-0500)/


Volume (Delayed 15m)
:
516254



AFTER HOURS



USD258.75



%


Volume (Delayed 15m)
:
5104




P/E Ratio
21.122448979591837

Market Cap
37230468394.082


Dividend Yield
0.6183574879227053%

Rev. per Employee
1043950









More quote details and news »


hosts a meeting for


Credit Suisse



CSGN.EB 0.273224043715847%



Credit Suisse Group AG ADR


U.S.: NYSE


USD14.68


0.04
0.273224043715847%



/Date(1504299721181-0500)/


Volume (Delayed 15m)
:
1305231



AFTER HOURS



USD14.68



%


Volume (Delayed 15m)
:
19535




P/E Ratio
N/A

Market Cap
37502356133.3269


Dividend Yield
4.878147138964578%

Rev. per Employee
653963









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investors.

Russian President Vladimir Putin has a private meeting with Chinese President Xi Jinping at some point at the BRICs meeting in China.

Fed Governor Lael Brainard speaks at the Economic Club of New York.

Minneapolis Fed President Neel Kashkari gives a speech.

Dallas Fed President Robert Kaplan participates in a moderated conversation before the Dallas Business Club.

Investor Bill Ackman, who has been seeking representation on ADP’s board, is set to meet with it.

IPO lockup restrictions expire on


J.Jill.



JILL 5.1493305870236865%



J.Jill Inc.


U.S.: NYSE


USD10.21


0.5
5.1493305870236865%



/Date(1504299722358-0500)/


Volume (Delayed 15m)
:
413488



AFTER HOURS



USD10.26


0.05
0.48971596474045054%


Volume (Delayed 15m)
:
632




P/E Ratio
N/A

Market Cap
424793092.336578


Dividend Yield
N/A

Rev. per Employee
168128









More quote details and news »


Wednesday 6

The ISM nonmanufacturing index for August is reported, as is the beige book of regional economic conditions.

Francesca’s Holding,


G-III Apparel Group,



GIII 0.5818181818181818%



G-III Apparel Group Ltd.


U.S.: Nasdaq


USD27.66


0.16
0.5818181818181818%



/Date(1504299600450-0500)/


Volume (Delayed 15m)
:
582616



AFTER HOURS



USD27.68


0.02
0.07230657989877079%


Volume (Delayed 15m)
:
4108




P/E Ratio
32.92857142857143

Market Cap
1338204965.59143


Dividend Yield
N/A

Rev. per Employee
281437









More quote details and news »



Korn/Ferry International,



KFY 1.290516206482593%



Korn/Ferry International


U.S.: NYSE


USD33.75


0.43
1.290516206482593%



/Date(1504299720272-0500)/


Volume (Delayed 15m)
:
283488



AFTER HOURS



USD33.75



%


Volume (Delayed 15m)
:
3443




P/E Ratio
22.959183673469386

Market Cap
1926462467.09686


Dividend Yield
1.1851851851851851%

Rev. per Employee
228093









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and Liberty Tax host earnings calls.

E.W. Scripps holds an investor day.

German Finance Minister Wolfgang Schaeuble is among attendees at a German Banking Conference organized by Handelsblatt newspaper.

Lockup restrictions expire on Matlin & Partners Acquisition and Presidio.

The Financial Accounting Standards Board meets.

Japanese Prime Minister Shinzo Abe makes a two-day trip to Russia.

A House committee holds a hearing on “The Sharing Economy: Creating Opportunities for Innovation.” Another holds a hearing on streamlining federal permitting to help small business.

Thursday 7

The European Central Bank meets, and issues its decision on interest rates. It may also discuss prospects for winding down its asset purchase program, although concerns about the euro surpassing $1.20 to the dollar probably will weigh on its decision.

Weekly initial jobless claims are reported, as is revised productivity for the second quarter.


Barnes & Noble,



BKS -3.225806451612903%



Barnes & Noble Inc.


U.S.: NYSE


USD7.5


-0.25
-3.225806451612903%



/Date(1504299724062-0500)/


Volume (Delayed 15m)
:
915947



AFTER HOURS



USD7.55


0.05
0.6666666666666666%


Volume (Delayed 15m)
:
10527




P/E Ratio
26.785714285714285

Market Cap
563285493.850708


Dividend Yield
8%

Rev. per Employee
149791









More quote details and news »


Peak Resorts, and Verifone Systems host earnings calls.

New York Fed President William Dudley speaks before the Money Marketeers at New York University.

Cleveland Fed President Loretta Mester speaks before the Economic Club of Pittsburgh.

Markets in Brazil are closed for independence day.


Mastercard,



MA -0.0450112528132033%



Mastercard Inc.


U.S.: NYSE


USD133.24


-0.06
-0.0450112528132033%



/Date(1504299712901-0500)/


Volume (Delayed 15m)
:
2375574



AFTER HOURS



USD133.59


0.35
0.26268387871510057%


Volume (Delayed 15m)
:
71778




P/E Ratio
32.98019801980198

Market Cap
141988357962.582


Dividend Yield
0.6604623236265386%

Rev. per Employee
959916









More quote details and news »



Aptargroup,



ATR 0.32292787944025836%



Aptargroup Inc.


U.S.: NYSE


USD83.88


0.27
0.32292787944025836%



/Date(1504299722103-0500)/


Volume (Delayed 15m)
:
174734



AFTER HOURS



USD83.88



%


Volume (Delayed 15m)
:
8308




P/E Ratio
24.59824046920821

Market Cap
5244353596.6333


Dividend Yield
1.525989508822127%

Rev. per Employee
184855









More quote details and news »


Barnes Group, Proofpoint, and


Wabco Holdings



WBC 0.18103328227266396%



WABCO Holdings Inc.


U.S.: NYSE


USD143.88


0.26
0.18103328227266396%



/Date(1504299723655-0500)/


Volume (Delayed 15m)
:
284774



AFTER HOURS



USD143.9463


0.0663
0.04608006672226856%


Volume (Delayed 15m)
:
2193




P/E Ratio
23.98

Market Cap
7702484032.63977


Dividend Yield
N/A

Rev. per Employee
227947









More quote details and news »


meet with analysts and investors.

European Union foreign ministers meet in Estonia.

Friday 8

Consumer credit for July is reported.

Philadelphia Fed President Patrick Harker talks about “Consumer Finance Issues” before the New Perspectives on Consumer Behavior in Credit and Payments Markets Conference.

Governors John Hickenlooper of Colorado and John Kasich of Ohio discuss a bipartisan plan to stabilize the health-insurance market, at the American Enterprise Institute in Washington.

Week’s Highlight

Thursday 7: The European Central Bank meets, and issues its decision on interest rates. It may also discuss winding down its asset-purchase program.

Edited by Robin Goldwyn Blumenthal

Email: editors@barrons.com

Follow @robinatbarrons

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