Experts at Sibos discuss the benefits, risks, and challenges of settling securities in one day or less, focusing on T+1 settlement times.
Facts
- Sibos panels explore the path to accelerated settlements in global markets.
- T+0 settlement envisions transaction and settlement dates separated by a few hours.
- Current market realities prompt discussions about T+1 settlement for transactions completed within a 24-hour day.
- A panel chaired by Julia Streets, with participation from industry leaders, delves into operational aspects.
- Canada and the US plan to adopt T+1 for equities, while Latin American markets aim to catch up.
- India and China already support T+1 settlements, and global standardization is a key goal.
- Shared settlement speeds promise reduced counterparty risks, lower margin requirements, and improved capital deployment.
- Modernization and automation are expected outcomes of unifying settlement times.
- Benefits include reduced operational risk, lower costs, and increased liquidity for investors.
- Industry awareness is a significant challenge in achieving T+1 settlements, requiring holistic rethinking.
- The financial industry is eager to collaborate for faster, more efficient, and unified operations.
