All comparisons of trades between direct market participants (i.e. brokers, broker dealers and other exchange members) should be accomplished by T + 0. Matched trade details should be linked to the settlement system.

Indirect market participants (such as institutional investors, and other indirect trading counterparties) should achieve positive affirmation of trade details on T + 1.

Each country should have in place an effective and fully developed central securities depository, organized and managed to encourage the broadest possible direct and indirect industry participation. The range of depository-eligible instruments should be as wide as possible. Immobilization or dematerialization of financial instruments should be achieved to the utmost extent possible.

Each market is encouraged to reduce settlement risk by introducing either Real Time Gross Settlement or a trade netting system that fully meets the 'Lamfalussy Recommendations'.

Delivery versus payment (DVP) should be employed as the method for settling all securities transactions. DVP is defined as follows: simultaneous, irrevocable and immediately available exchange of securities and cash on a continuous basis throughout the day.

Payments associated with the settlement of securities transactions and the servicing of securities portfolios should be made consistent across all instruments and markets by adopting the 'same-day' funds convention.

A rolling settlement system should be adopted by all markets. Final settlement for all trades should occur no later than T + 3.

Securities lending and borrowing should be encouraged as a method of expediting the settlement of securities transactions. Existing regulatory and taxation barriers that inhibit the practice of...