The Change In The T+1 Transactions Cycles Makes The Affirmation Process Compulsory

Dear Depositors,

For all the clients of the Cross-border Custody Service, Depósito Central de Valores reinforces and complements the information on the reduction of the securities purchase and sales transactions settlement cycle from two business days (T+2) to one business day (T+1) to become effective on May 28, 2024 (Rule 15C6-2).

Based on the information provided in DCV's Newsletter of November 6, 2023, DCV, together with its cross-border custody providers, is working on communicating and detecting any changes to the transaction processes that DCV may face in its role as a custodian due to this reduction, as well as those that affect the clients that invest in the United States market.

We emphasize that this regulatory change makes the affirmation process for transactions negotiated in the market in T (negotiation date) compulsory, which, up to date, was voluntary, significantly reducing the hours available to do the post-negotiation coordination, including the instructions registry in DCVe. Due to this, DCV stresses the importance of communicating this information and addressing the concerns of the counterparts who must adhere to the affirmation process.