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The switch to the system known as T+1 — abandoned in the earlier era as volumes became unwieldy — is ultimately intended to reduce risk in the financial system. Yet there are worries about potential teething issues, including that international investors may struggle to source dollars on time, global funds will move at different speeds to their assets, and everyone will have less time to fix errors.
“There’s a lot of dependencies within the industry and there may be some rough patches with individual firms,” said Tom Price, managing director and head of technology, operations, and business continuity for Sifma. “But I’m encouraged that firms are staffing up. They’re making sure folks are not at the beach over the transition period but in the office.”
