T+1 Settlement and Beyond

March 20, 2023

As the world watches the U.S. market plan for a T+1 cycle for securites 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

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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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