Before 1980s trading was paper based. In the 1980s people started expanding their trading practices to foreign companies. European countries started trading in US and vice versa. In order to bring some regulation, a group of countries collaborated and formulated a set of processes that all these participating countries would implement. They called themselves G30 or Group of 30.
The United States being more influential among the countries involved, took the lead and formulated a set of processes like:
- All securities should have a common security identifier number – CUSIP
- Comparison of trade should be effected by T+1
- Settlement of corporate issues by T+3
- Rolling forward of unsettled transactions(Trade settlement failures to be included in next day settlement transaction)
- Movement of security from seller to buyer and vice versa done via a single control source
- A central depository of securities in each country
- Common messaging system employed cross border
The members are from 30 countries which includes heads of major banks too. Today, India is also a member of G30.