Absrracr-In Voice Trunking over ATM (VTOA) technology, the tandem is replaced by three components: Trunk Inter-Working Function (T-IWF), Control and Signaling Inter-Working Function (CS-IWF), and ATM Network. This new architecture calls for re-examination of the signaling channel delay issues, which are wellatudied and well-speded for TDM networks. In VTOA, the ATM network together with the inter-working functions act as a virtual tandem switching system, which is called "ATMbased distributed virtual tandem switching system." The aim is that the performance of ATM-based trunking network should be at least as good as TDM-based network. The eross-of8ce delay budget must be shared among the interworking mnctions and the ATM network. Hence, the t h e for the ATM network to establish a switched virtual connection (SVC) is stringent.In this paper, we propose a simple adaptive SVC caching scbeme to offload the high processing capaaty burden on ATM switches. After a SVC is established in a usual way for a call, it is not tom down after the conversation is over. Instead, it is kept alive for variable duration (i.e., delayed release) with the expectation that there would be another call request for the same terminating end office during tbat time. The caching duration is adaptively changed with call arrival rate and call setup delay in the ATM network in order to stay within the delay budget specified by the requirements. The adaptability and the convergence of the algorithm are also shown by extensive simulations related to practical scenarios.