On May 28^th, 2024, the US securities markets transitioned from a securities settlement cycle of two business days (T+2) to one business day (T+1). As part of this transition, timelines relating to allocations, affirmations, creations and redemptions have all been expedited. While this rule has been implemented in the US and will soon be implemented in Canada and Mexico, it has not been adopted in key regions such as Europe and APAC. In this report, we shed light on the scope of this new settlement cycle as well as the challenges presented by differing global regulatory landscapes. 

LITERATURE

In this report we summarise a booklet published by the SIFMA, CCMA, and ISDA titled “T+1 Settlement Cycle Booklet”.

The booklet was published in April 2024 and it intends to address market participant queries on the settlement cycle changes that took place in the US on M...