Deep Dive: US move to T+1 for ETFs will require 'synchronisation' from foreign markets

Timing mismatch

The move to a T+1 settlement in the US for ETFs at the end of May 2024 has been widely welcomed as it brings the potential to improve market efficiency, but close monitoring will be required.

Although several players were expecting the number of failed trades to increase significantly and rapidly post introduction – especially within markets in Europe and Asia Pacific – this has not been the case, said Benjamin O'Dwyer, vice president and ETF global capital markets specialist at State Street SPDR ETFs. Deep Dive: Investors abandoning TIPS on falling inflation 'misunderstand' performance drivers He said the firm has not seen a "significant uptick in the rate of fails" and is continuing to process ETF primary creation orders "without complications". Gerard Walsh, head of ...