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At A Glance
The global shift toward T+1 settlement cycles is gaining momentum as the US and Canada prepare for implementation, while Europe evaluates its roadmap through industry task forces. Faster settlement timelines promise improved market efficiency, reduced counterparty risk, and stronger liquidity across capital markets.
A transformational shift in the world of capital markets is underway. Starting May 28, 2024, the US Securities and Exchange Commission (SEC) plans to implement the T+1 settlement cycle, testing for which will begin on August 14, 2023. Canada is also expected to follow suit.
Europe too is gearing up for its move, with AFME establishing a T+1 industry task force, but the lack of any important dates regarding its move to T+1 is a concern for many.
India and China are currently the only two countries that have already adopted a T+1 settlement cycle. India adopted the T+1 cycle for its equity markets, and China uses a combination of T+0, T+1, and T+2.
But what can we take away from India and China's successful T+1 journeys? Find out how the two pioneers of T+1 can help the US, Europe, and the rest of the world move towards faster settlements and set the stage for a new era of trading.
