Earlier this year, Bloomberg Intelligence (BI) estimated that the U.S. transition to T+1 settlement could cost the securities industry more than $31 billion a year, with the move reflecting “profound implications” for both the U.S. and global markets. For now, though, the full impact is still emerging, says Gerard Walsh, who leads Northern Trust‘s global… Read More >>
E.U.’s Buy Side Wants T+1 to Happen Sooner
The German buy side is advocating for the earlier adoption of shorter T+1 settlement, amid growing calls for harmonization with the U.K. and Switzerland. The German Investment Funds Association (BVI), which represents 115 fund companies and asset managers with €4 trillion ($4.4 trillion) in assets under management (AUM), is pushing for the European Union to… Read More >>
SEC Kicks Off a T+1 Compliance Sweep
The U.S. Securities and Exchange Commission (SEC) has begun detailed examinations of industry participants to ensure compliance with its new T+1 trade settlement and recordkeeping requirements. Both investment advisors and broker-dealers are being audited to provide information on their policies, procedures, and records related to trade allocation, confirmation, and affirmation processes to the SEC’s Division… Read More >>
T+1 Glitches Emerge Between U.S. & E.U. Settlement
At a recent European Securities and Markets Authority (ESMA) public hearing on T+1 settlement, market participants expressed confidence that misalignments caused by North America’s transition will be resolved once the European Union (E.U.) adopts a shortened settlement cycle. While North America’s transition to T+1 was largely uneventful, hailed as a success by many, including DTCC… Read More >>
Achieve T+1 Harmony with U.S. Before E.U.: Task Force
The investment management industry believes that the U.K. being out of sync with the T+1 settlement of the U.S. is a bigger problem than with the European Union, and the U.K. needs to get its “skates on” with implementation. That’s according to Andrew Douglas, chair of the U.K. Accelerated Settlement Task Force (AST), which advocates… Read More >>
Did FX Workarounds Help Firms Get to T+1?
The foreign exchange (FX) industry has been tight-lipped since North America transitioned to a shorter settlement cycle a little over a month ago. However, more light is being shed on the operational workarounds buy-side firms deployed to meet the deadline. Though concerns about FX liquidity and pricing prior to the transition have not necessarily materialized,… Read More >>
DTCC’s T+1 Trade Fail Rate Nearly Doubles
The DTCC’s same-day settlement trade fail rate increased by 46 percent, rising from 1.86 percent to 2.7 percent between May 29 and May 30, foreshadowing a period of unrest as T+1 operational headaches crawl out of the woodwork. There was little commotion for most of the transition week, as market participants navigated North America’s long-awaited… Read More >>
North America’s Rocky Road to T+1 Begins
Like it or not, North American firms are getting new plumbing for settlement. Settlement within the shorter time frame of the trading day plus another day, or T+1, is becoming a reality for North American firms, starting with those firms in Canada and Mexico, and with a nod to South America, Argentina, on Monday, May 27,… Read More >>
Firms Fear Manual Processes Could Spur T+1 Failures
As North American financial markets brace for the impending transition to a T+1 settlement cycle next week, concerns are mounting over the reliance on manual post-trade processes, which could lead to unwelcome settlement failures and increased costs. Firms lacking adequate technological infrastructure are now in a frantic last-minute scramble to automate manual post-trade processes, with… Read More >>
Firms Fortify Ops for the Countdown to T+1
A little over a year ago, the U.S. Securities and Exchange Commission (SEC) announced May 28, 2024, as the deadline for North America’s transit from T+2 to T+1 trade settlement. Now, with the crossover mere days away, the securities industry is racing against the clock to finalize preparations. This week, the DTCC published an update… Read More >>
