(Bloomberg) -- The proportion of US securities transactions failing to settle remained largely steady on Wednesday, as Wall Street aced the first major test of its move to a faster trading system.

Data released by the Depository Trust & Clearing Corp. show the “Fails Rate” recorded in its Continuous Net Settlement system — a platform that aims to minimize the exchange of securities between counterparties by netting off trades — was 1.90% on Wednesday. That compares to a daily average of 2.09% last week, before new rules halved the time allowed to complete every transaction to a single day. 

For matched trades processed outside of CNS the fails rate was 2.92% versus a 3.35% average last week, the DTCC data show.

The DTCC sits at the heart of the US market and processes the vast majority of all trades, making the figures the first major indicator of the impact of the transition to what’s known as T+1. The industry consensus was that a rise in trade failures was likely as firms adjusted to the new settlement cycle.

The rates aren’t a perfect gauge of the T+1 impact, however, because Wednesday’s data includes trades from Friday that were still settling on a two-day basis. Still, the extra volumes created by this “double-settlement day” had also stirred concern over potential additional pressure in the system. 

In another positive sign, the proportion of Wednesday’s transactions that were “affirmed” — a mandatory step before settlement — by a deadline of 9 p.m. in New York hit 94.55%, the data showed. That beat the DTCC’s own 90% target for a second day, a level it has said is necessary to maintain market efficiency and help avoid an increase in failed trades.

Financial institutions across the globe have been preparing for the T+1 switch for months by relocating staff, adjusting shifts and overhauling work flows. While firms generally expressed confidence in their own readiness, many had concerns over whether every counterparty and intermediary would be similarly organized.

A January survey by research firm ValueExchange said market participants expected the fail rate to increase to 4.1% after T+1 implementation, from 2.9% previously. The Securities and Exchange Commission said last week the transition may lead to a “short-term uptick in settlement fails and challenges to a small segment of market participants.”

Industry focus may now turn to MSCI Inc.’s index rebalancing at the end of the week. That will cause funds around the world tracking its gauges to shuffle holdings at the same time.

(Updates to add affirmation data and MSCI rebalance context from sixth paragraph.)

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