Players in the foreign exchange (FX) industry are being forced back to the drawing board when it comes to settling currency transactions on a T+1 basis after CLS Group, a key player in FX settlement, announced last week that it will refrain from making operational modifications to its CLSSettlement multi-currency settlement system. Back in February,… Read More >>
ESMA Survey Sheds Little Light on T+1 Impacts
The European Securities and Markets Authority (ESMA) has received inconclusive responses to key issues around costs, operational impact, and the effect on market liquidity of shortening the settlement cycle in the European Union (E.U.). The E.U.’s regulatory body overseeing financial markets deferred drawing conclusions on many aspects, opting instead to glean insights from North America’s… Read More >>
Europe’s T+1 Lag Could Spur Global Settlement Disarray
The impending switch to T+1 settlement in North America scheduled for May 28, 2024, has raised concerns in Europe, where market participants report a lack of international testing. Although not officially moving to T+1 just yet, Europe launched its T+1 taskforce led by the Association for Financial Markets in Europe (AFME) in March last year. In early conversations… Read More >>
BBH Takes Aim at Latencies in Securities Lending
(To help its securities lending clients with their transition to T+1 shorter settlement, Brown Brothers Harriman (BBH) is examining securities loan recall lifecycles to find any latencies that may be caused by batch processing or bespoke messaging for Swift processes, says Sarah Holmes, global head of securities lending at BBH. In her new role, Holmes… Read More >>
T+1 Will Create a Complex Choreography for Ops
When the North American securities industry starts settling trades the day after they’re executed in May 2024, it will be the culmination of a process dating back at least 30 years. Shortly after the Securities and Exchange Commission (SEC) cut the trade settlement cycle in 1993 to the third business day following trade execution (T+3)… Read More >>
T+1 Will Initially Mean More Settlement Fails: Q&A
(FTF News recently got time with Robert Walley, principal, financial services at consultancy Deloitte, to discuss the securities industry’s move to a shorter settlement cycle of trading day plus another day, a.k.a. T+1, which is underway in North America. Walley leads Deloitte’s capital markets and global financial markets industry sectors. He helps clients with transformations… Read More >>
T+1 Could Expose Ops Woes for Many Firms
The pain, suffering, and costs of doing business in the global securities industry are likely to increase as a result of the push for shorter settlement cycles, which is underway in the U.S. and Canada as firms there transition to trading day plus one, a.k.a. T+1. That was one of the unvarnished takeaways from a… Read More >>
