In February, the Securities and Exchange Commission (SEC) adopted final requirements for a May 28, 2024, T+1 implementation date. In anticipation of the acceleration of the U.S. securities settlement cycle from T+2 to T+1, DTCC partnered with the Canadian Depository for Securities (CDS) with the support of the Association for Financial Markets in Europe (AFME), the Canadian Capital Markets Association (CCMA) and ISITC to sponsor a ValueExchange survey that explores industry readiness and emerging challenges tied to the new regulatory requirement across critical segments of the trade lifecycle.
The survey, which includes insights from more than 280 organizations across the global investment cycle, found that many market participants face enterprise-wide challenges around the move to T+1. Highlights from the survey include:
- T+1 will impact many segments of the trade lifecycle including middle office, settlement, fails management, securities lending, and the corporate actions.
- More than 40% of respondents have not yet begun planning for T+1.
- 61% of buy-side firms unprepared for the transition, primarily across mid-tier and boutique organizations.
- More than 50% of European and Asia-Pacific market participants have not defined their plans to manage critical areas such as foreign exchange and securities lending.
- In anticipation of the operational impact of T+1, 23% of investors are moving to centralized SSIs and trade matching to alleviate future service provider challenges.
Key findings from the survey, along with a foreword from DTCC, can be found here.