THE OFFICIAL NEWSPAPER OF TRADETECH FX EUROPE 2023
Featuring the latest news alongside exclusive insights from buy-side speakers at the event , The TRADETech FX Daily gives you the inside track on what to expect both from the conference and the year to come .
T + 1 settlement : The biggest FX shake up in decades
AS THE TESTING PERIOD FOR THE US SHIFT TO T + 1 KICKS OFF , ANNABEL SMITH EXPLORES WHAT THE FOREIGN EXCHANGE- SPECIFIC IMPLICATIONS OF THE TRANSITION MIGHT BE ACROSS ACHIEVING BEST EXECUTION , SOURCING LIQUIDITY , FLOW NETTING AND TRADE MATCHING .
The TRADE reported on 14 August that the testing period for the shift to T + 1 settlement in the US had officially begun . The critical window – set to run until the planned implementation date at the end of
May 2024 – is a crucial opportunity for the industry to iron out any creases , of which there are many , before the transition is completed .
While at face value , shortened settlement cycles suggest greater efficiency and could minimise the risk of default as transactions are completed more quickly , the new requirements are likely set to force many institutions to undergo a major operational overhaul to ensure they adhere to them .