The move to T+2 in US post trade settlement
09 Aug 2016
The US is moving from T+3 to T+2 settlement by the end of Q3 2017. It is a significant undertaking, requiring industry wide changes to operating processes and IT systems to make it all happen. It requires all players across the Financial Services value chain to align and coordinate the move altogether. The last big shift in post trade settlement was in 1995 when the US moved from T+5 to T+3. We talk with George Mar who shares deep insights and advice about the move to T+2:
- So why go to T+2, what are the key benefits that expected?
- Is the US not missing a trick by not leapfrogging to a more ambitious T+1 standard?
- How significant are the challenges US firms face to comply with the new standard and what are they?
- What needs to change for back and middle offices to be ready?
- What is the state of readiness for T+2 in the US? Will the September 2017 target date be met?
- Why should there be any delay in post trade settlement, why not move straight to T+0?
- What are the key initiatives or priorities firms need to be working on to be ready to comply?