[ I N D E P T H | T + 1 ]
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.”
Joel highlights that work cultures are distinct across regions and play a critical role. Key disparities are seen even within his own firm, he explains:“ For instance, our local offices in the [ APAC ] region operate well beyond typical working hours, with teams still online at midday UK time, which is significantly later in the day for them.
“ This contrasts with the situation in London, where many operations teams conclude their workday by 5pm. In APAC, however, there is a strong commitment to ensuring settlement risk is minimised, and this cultural difference significantly contributes to operational efficiency.”
Tying this into the shift to T + 1, it’ s clear Asian firms are already bearing some of the brunt of current settlement requirements, with things only set to get tighter.
As Carpenter explains:“ When it comes to the shift, if your current solution for currency differences is having a few extra headcount managing the process, then part of the challenge will be that they will be losing some of the working day. The condensed time frame when moving to T + 1 is likely to make such manual solution a less viable approach going forward.”
In Asia Pacific, it is more common to see upping headcounts as a fix for increased operational tasks due to cost pressures given that the price of labour is generally lower, depending on jurisdiction. However, the hunt for more workable solutions, as this delicate
task of aligning continues, is on.
As Samrai explains:“ Clients are increasingly reviewing their processes […] transitioning towards automation to improve operational controls and efficiencies to eliminate errors from manual elements- human error.
“[…] Not all firms are made equal and so it ' s the smaller players that perhaps are still relying on manual processes and have not invested in automation and technology who might need to assess their capabilities to meet T + 1 timelines.”
The third mover advantage? The other side of the coin of course, is not how APAC and Europe deal just with Europe’ s shift to T + 1, but the arguable inevitability of an Asian switch to T + 1 too.
“ We always talk a lot here in the UK about second mover advantage […] we ' ve been able to make adjustments to our strategy to take advantage of that knowledge. Therefore, APAC will have a sort of third mover advantage because they will have seen what works in all the other markets,” says Douglas.
“[…] The Asia Pacific markets are quite intertwined and I’ m sure once one of them decides to go, the others will think they should probably look to do the same.”
Currently, Australia and New Zealand are widely expected to move in 2030, while others like India have
54 // TheTRADE // Q1 2025