A new survey from Citi Securities Services is lifting the lid on the widespread ramifications of North America’s recent shift to T+1 settlement, with effects rippling across the entire trade lifecycle. While the DTCC, brokers, and custodians have remained relatively quiet since the May transition, Citi’s Securities Services Evolution 2024 survey shows that 44 percent… Read More >>
India’s T+1 Journey Has Lessons for North America
Nearly a year-and-a-half before the U.S., Canada, Mexico, Argentina, and Jamaica transitioned to a shorter settlement cycle for equities, corporate bonds, and municipal securities, India quietly implemented its T+1 settlement cycle intending to enhance liquidity and operational efficiency for India’s growing domestic markets. India also appears to have made a cost-effective transition — which may… 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 >>
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 >>
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 >>
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 >>
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 >>
SS&C Bolsters Tier 1 CRM Platform & Other News
SS&C’s Tier 1 Gains Users & Features The Tier 1 capital markets and investment banking customer relationship management (CRM) platform from SS&C Technologies has been enhanced, has more than 1,000 new end-users, and has the support of more staff members, officials say. The new features “include improved data insights and in-app information delivery,” officials… Read More >>