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A big change is coming early this year in the way US markets operate, with a shift to a shorter settlement cycle for trades in stocks, bonds and exchange traded funds. Most US settlements will move from T+2, or two business days after the trade is agreed, to T+1. This is very important for the future health of markets and a step long sought after by regulators, lowering trading costs and making the settlement of trades much more efficient and reliable.
T+1 has been much discussed among traders and technology people, but has not yet apparently received much attention from the top executives in most asset owners and asset managers. But this is an important shift that has both risks and opportunities. Over the next six months it will need an increased strategic focus.
https://www.ft.com/content/1aae6b3f-b0c3-4976-9da3-d1d26fa2a368
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