Pressure mounts on Asia to fall in line for T+1
With the US already on a T+1 settlement cycle, and the UK and EU preparing for the shift in 2027, there’s pressure for Asia to follow suit. But moving may involve more risks than expected.
The benefits of shorter settlement cycles are reduced counterparty settlement risk, reduced margin requirements, and improved capital efficiency. For the US’s move to one-day settlement, that has been true.
Firms like BlackRock and BNY reported successful transitions, owing to previous efforts from the shift from T+3 to T+2 in 2017.
Due to the success of North America’s move, the UK and the EU are now working toward a similar transition with a target date of October 11, 2027.
While the move
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