[ S E T T L E M E N T ] plex situation which everyone from the DTCC to the buy-side acknowledges is a challenging timeline . There is some precedent from the T + 3 to T + 2 transition in terms of lessons learnt , timelines and mirroring preparation , but the lift and actual percentage of time shortening is on another level . It ’ s not a change that solely impacts one segment of the market or one region , the ripple effect stretches far and wide throughout the financial markets of the world . On the day T + 1 comes into force in the US – whether it is May 2024 or a later date ( more on that towards the end of this article ) – there is a genuine risk we are going to see a swathe of fails and chaos across securities lending , FX , corporate actions and other functions within the market which a settlement cycle change will reach . It ’ s not all doom and gloom : there are likely to be significant benefits in liquidity , reduced risk and efficiencies that will shine through in the coming years , but right now it ’ s all about the preparation , testing and readiness . The bottom line is that T + 1 leaves little room for error , puts pressure on advancing post-trade processes and represents a genuine readiness challenge across the globe . Research undertaken by the ValueExchange earlier this year and published shortly after the SEC announcement cov-
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