Managing Director and General
Manager, DTCC Institutional
“2024 will see the shift to a T+1 settlement cycle in the U.S., which promises significant advantages for financial markets. Benefits include reduced trade risk, lower clearing fund requirements, improved capital utilization, and enhanced operational efficiency. However, for those firms who are still using manual post-trade processes, it is critical that they leverage automated solutions to achieve timely settlement. Further, to ensure a smooth transition by the implementation date of May 28, 2024, comprehensive industry testing is essential, covering end-to-end processes from trade execution to trade settlement and non-standard settlement scenarios.
As part of their preparations, it is crucial for market participants to understand what is required of them to comply with the regulatory mandate, including post-trade processes which are unique to the U.S., such as trade affirmation, which is a critical and unique step in successful trade processing in the region. Assessing operational efficiency and counterparties' performance is also vital as over time, costs associated with late settlements or inefficient processes can add up. With the T+1 implementation date approaching, it is imperative to act now, understand the impact, test rigorously, and automate post-trade processes for T+1 readiness.”