Now the Dust Has Settled on the US’ T+1 Transition, What’s Next?

This post was originally published on The FinTech Times

Traditionally, settling transactions has taken multiple days. In recent years, most securities transactions took two business days – resulting in the name ‘T+2’. However, in May 2024, the US Securities and Exchange Commission reduced the wait time for transactions to a singular day (T+1).

A month after the change was made, Rich Robinson, chair, ISITC (International Securities Association for Institutional Trade Communication) examines how the country and investment industry has responded. 

T+1 settlement: A smooth transition with a few wrinklesRich Robinson, chair, ISITCRich Robinson, chair, ISITC

After years of planning and anticipation, the financial industry in the United States flipped the switch on the T+1 settlement cycle at the end of last month. This transformative shift, aimed at reducing risk and enhancing market efficiency, has been a focal point for market participants worldwide. Now, as the dust begins to settle on the initial implementation, it’s an opportune moment to reflect on how the transition has unfolded and what challenges lie ahead.

First and foremost, the good news. Despite the magnitude of the change, the transition to T+1 has been largely successful from an operational standpoint. The financial markets didn’t experience any

Read the rest of this post, which was originally published on The FinTech Times.

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