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Solutions to address accelerating the securities settlement cycle

Reimagining financial services industry operations and technology for T+1

The securities industry is actively evaluating an accelerated settlement cycle, from the current two-day (T+2) settlement cycle to a one-day (T+1) settlement cycle. Given this anticipated transition, what will the impacts be for the market infrastructure and various market participants? And what will this mean for operations, risk management functions, and the role of emerging or novel technologies?

Accelerating the securities settlement cycle

Currently, securities settlement involves a series of mostly manual processes that are prone to risk, high costs, and operational stress. But as the industry considers moving to T+1, there are a number of potential benefits that should help strengthen the resiliency of financial markets, reduce risk, and create cost savings for firms and their investors. 

Even though it won’t go into effect in the near future, firms should begin evaluating the impacts of a transition to T+1 across their front-, middle-, and back-office operations and technology capabilities. As you build a transition program, your firm may also consider standing up a program management office, securing funding for future implementation efforts, and educating business partners about the coming changes.

 Download this new industry report* to learn more about the transition to T+1.

*Report created by multiple contributors and Deloitte.

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As consideration for an accelerated settlement cycle gains momentum, numerous market participants, including broker-dealers, investment managers, and industry utilities and vendors, are working in close collaboration to study the feasibility and impacts of this industry transition. While the transition to T+2 settlement was viewed as “tightening the belt” for many operational processes, many consider the transition to T+1 to require significant reengineering of market and business functions, including the advent of advanced technologies.

Deloitte can help you prepare for a T+1 settlement cycle with:

How can Deloitte help?

There are several considerations that firms can address when it comes to an accelerated settlement cycle, and substantial changes to business practices and supporting technology will be necessary to meet the reduced settlement period. If you are interested in learning more about these changes and potential solutions, contact Bob Walley to discuss your organization’s needs.

 

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Bob Walley

Bob Walley

Principal | Deloitte & Touche LLP

Bob is a New York–based principal focused on the regulatory and capital markets marketplace, assisting clients to operationalize rules, regulations, and controls. He has spent more than 30 years in fi... More

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