T+1 Settlement and Beyond

As the world watches the U.S. market plan for a T+1 cycle for securities settlement, other countries are assessing similar moves. BBH is working with clients to help them optimize their global operating models and support their readiness for this major industry shift.

In May 2024, all U.S. trades will need to settle on T+1, or one day after they have traded. The move from the current T+2 cycle will aim to reduce settlement risk, and reduce liquidity, margin and collateral requirements. Other countries across the world are assessing similar moves.

In addition to enhancing custody and settlements, the move will have a ripple effect on many processes across the securities trade lifecycle which will impact all global asset managers and financial institutions. It will also create an opportunity to automate and enhance previously manual or inefficient processes to meet the heightened demands and constrained timelines inherent in the move to shorter settlement cycles.

For more information on the seven areas that will be impacted by U.S. T+1 and how to prepare, read the article below

Stay in the Know

Talking T+1 Webinar Series

Join BBH experts and industry leaders as we explore all the facets of T+1 with a special focus on the overlooked impacts of the transition. Watch the recording to catch up on what you missed!

Our Latest Insights on T+1 Settlement

  • Abstract digital circles
    As the T+1 deadline approaches, BBH’s Ricky Ellis analyzes the important FX workflow decisions managers have made, the solutions that are taking shape, and the challenges that lie ahead.
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    As industry prepares for U.S. T+1, BBH’s Ted Suda, Yoshifumi Nakajima, and Chris Pigott share the major impacts and considerations facing firms in Asia.
  • Abstract stream information with circles array and binary code
    With some in the industry downplaying the impacts of the upcoming settlement shift, it’s important to consider the facts behind the myths.
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    A deep dive into the downstream impacts of T+1 on the ETF ecosystem and how participants should be preparing to support primary market activity.
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    Making tactical decisions at the expense of more strategic approaches would be a missed opportunity. Keith Haberlin shares how to optimize your operating model for shorter settlement cycles.
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    BBH’s Tom Poppey and Rob Lees look at the changes that asset managers should prioritize and how they can use the race to T+1 to gain an edge.
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    Ricky Ellis, Head of BBH FX Sales EMEA, assesses the impact of U.S. T+1 on the FX market and key considerations for asset managers.
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    The impacts of shortened settlement cycles in the U.S. are critical to asset managers and banks globally. What can you do now to prepare for the change?
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    What’s needed before a region with 41 trading exchanges and 31 settlement infrastructures can consider a shorter settlement cycle?
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    As the world watches the U.S. market plan for a T+1 cycle for securities settlement, others are assessing similar moves. BBH sets out the main process areas in the securities trade lifecycle that will be impacted by shorter settlement cycles and what you need to do now to prepare.

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