T+1: Transforming the Trading Lifecycle from End-to-End

Implementing T+1 requires a holistic approach, focusing not just on individual system upgrades but on the entire ecosystem’s ability to operate faster, more accurately and with greater automation. It is a recalibration for financial institutions, transforming the entire trading lifecycle from execution to settlement and demanding proactive operational shifts across global markets.

Key Highlights:

• Transformative Impact: The T+1 transition will fundamentally reshape the entire trading lifecycle, from trade execution and matching to funding, inventory management, and ultimately clearing and settlement, requiring a holistic operational recalibration.
• European Complexities: While the US transition was relatively smooth, Europe faces significant challenges due to its multitude of jurisdictional regimes, numerous Financial Market Infrastructures (FMIs), and connectivity gaps with the ECB's Target2Securities (T2S) platform.
• Automation and Data Quality are Key: Success in the T+1 environment hinges on improved data quality, timely confirmations, and extensive automation across processes to mitigate settlement fails and manage liquidity effectively.
• Strategic Preparation Required: Financial institutions must budget for T+1 implementations, develop technology solutions, understand and automate processes, and engage with counterparties for readiness, with testing and final operational readiness planned for 2027.