[ I N D E P T H | T + 1 ]
and New York. The time zones create a lot of inefficiency in that some time zones are already putting up collateral a day early to receive collateral back‘ tomorrow’.”
There is of course, understandably, a clear correlation between the emphasis on proactive preparation and APAC’ s market structure wherein firms are risking significant penalties if cut-offs are not met.
James Pike, chief revenue officer at Taskize, tells The TRADE:“ Asia-based market participants need to implement the ability to‘ pass the book’ internally to other operations teams so issues don’ t persist beyond the end of the trading day.
“ This is a vital part of the wider securities settlement picture that needs to be looked at much closer between now and the 2027 deadline to ensure settlement fails costs don’ t increase further.”
Added to this, is the continually increasing globalisation of trading activity which exacerbates those key points of diversion across jurisdictions, thanks to fragmentation and the different currencies at play.
Duncan Carpenter, director of product management, Pirum, highlights one factor potentially affecting secondary markets, explaining:“ If you ' re selling against different [ currencies ], you ' ve now got different time frames in Asia versus your European assets for example.
“ You ' ll therefore have part of your trade on a T + 1 basis, and part on a T + 2 basis, and that ' s a more direct challenge which they ' ll need to deal with.”
Better said, the time for preparations is nigh, with operational questions including upping tech stacks needing be considered as a matter of urgency. But what is also up for debate is the potential for a change in the hours being worked in APAC.
Though firms look to do as much as they can with what they have, invest where needed in the right technology, and keep a finger on the pulse of new requirements, the inescapable fact remains that in the trading world, a human touch is mandatory.
Samrai tells The TRADE:“ An operations manager, regardless of geography, will want all trades
“ An operations manager, regardless of geography, will want all trades matched and settled by end of the day before they go home and if this is not possible, the next question is about whether we see a shift to extended operational hours to support and facilitate trading desks in those regions.”
PAM SAMRAI, HEAD OF BUY-SIDE POST-TRADE PRODUCT, BLOOMBERG
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