Financial markets worldwide are modernising by dematerialising share certificates, digitising and automating processes, and settling trades more quickly to improve efficiency.
On 28 May, the US made a major move, shortening its securities settlement cycle from T+2 to T+1. The transition went more smoothly than some expected and after resolving a few teething problems, the market has seen settlement efficiency on par with normal levels. In the UK, Charlie Geffen's Accelerated Settlement Taskforce recommended that the country adopt a two-phase approach with operational changes gearing up in 2025 and a full transition by the end of 2027. Deep Dive: US move to T+1 for ETFs will require 'synchronisation' from foreign markets The taskforce has also underlin...
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