[ N E W S R E V I E W ]

Shift to T + 1 ‘ more significant than any other change before it ’

Reduced settlement cycles were under the microscope at a TNF Americas panel in New York .

The move to a T + 1 settlement cycle has been the basis for discussion and debate across the industry , with a panel at The Network Forum Americas Meeting in New York in September highlighting the impact it will have across the global financial system . “ A shift by more than half [ of the settlement time ] is going to be more significant than any other change that preceded it ,” said Kelly Mathieson , chief client experience officer at Digital Asset . “ It ’ s not simply going to be about market timings , but about the operating and the technology systems , the way we interact with clients , the way we interact with peers , will be affected .” Conversations around a reduced settlement cycle were amplified as a result the tumultuous times starting in 2020 , according to John Abel , executive director , clearance and settlement , product management at the Depository Trust & Clearing Corporation ( DTCC ). “ The impact that Covid and then the meme stocks had on lodging requirements are the NSCC and the dramatic spikes inevitably led to a discussion of , ‘ what can we do as an industry to reduce those margin spikes ?’, which then leads to a conversation around settlement cycles .” When discussing the market readiness for T + 1 , the panel drew some sharp reactions with Horatio Barakat , head of digital innovation , capital markets at Broadridge Financial Services , proclaiming that “ T + 1 cannot come soon

16 Global Custodian Fall 2022