With just under a year to go before requirements to shorten the securities settlement cycle in the U.S. and Canada take effect in May 2024, the implementation countdown is officially on.
DTCC recently held a panel discussion with industry experts across the transaction lifecycle, from custodians to broker/dealers to investment managers, who shared their insights and takeaways while preparing for the shortened settlement cycle.
For a complete discussion on current challenges to overcome, importance of effective impact assessments and the role of automation in driving settlement efficiencies watch the full event replay.
Just the Gist: With less than 12 months until T+1 implementation for the U.S and Canada, the message is clear — if you haven’t started, the time is now to prepare.
Testing Tips: T+1 will impact all parts of operations and is not limited to securities lending, FX, custody or any one single area. All operational segments need to be identified prior to planning, testing and implementation.
- Engage with clients early to develop comprehensive communication plans and ensure there are no hiccups in the transition is crucial.
- Gather all necessary data for a unified view of the settlement process on any given day to help determine client function models and reconciliations.
- Work with key vendors and third parties to determine their level of readiness.
Here to Help: From an operational lens, DTCC’s Institutional Trade Processing products and services can help firms analyze the entire trade lifecycle and perform in-depth process reviews to find the root cause of inefficiencies to improve straight-through processes and readiness. Additionally, DTCC Consulting Services can help clients prepare with tools including impact assessments, counterparty assessments, testing and reference data.
What’s Next: The industry’s testing window will open on August 14, 2023; firms should begin preparing processes ahead of industry testing.