The scale of the changes required — which affected multiple divisions including funding, FX and securities lending — caught out many in the industry. Meanwhile, the impacts of the switch appear to have been felt unevenly, with the likes of asset managers hit with higher funding costs as banks and other intermediaries see expenses drop.
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Wall Street’s T+1 switch is proving tougher than anticipated
“Every area appears to have been more impacted than originally anticipated, from funding to headcounts, securities lending and fail rates,” the Wall Street bank’s securities services arm said in a report released Wednesday. “Investment budgets have been diverted, non-critical projects delayed and essential resources borrowed.”
